Which country should I buy in?

[AnotherPropertyGuy]

I have just sold a property in New Zealand and am looking for a new home for my money.

I am pessimistic about property prices in US, UK, Australia and New Zealand.

I wonder how much further Eastern Europe will rise or whether it is peaking.

My gut feeling is that Asia is the best place for risk/reward at present.

Which country do you think I should invest in and why?

 

[AnotherPropertyGuy]

Thanks John and Propertastic! It's great to see such an active community

I would not consider Albania - it feels pretty lawless to me. Bratislava seems like a 'safer' choice.

I was in Slovenia 3 years ago and was amazed at the hospitality of the people and the beauty of the landscape. On that experience alone, I would consider it but I know little about property matters there.

Montenegro also sounds like a beautiful place and having recently gained independence and it's inevitable joining of the EU should boost the country.

As far as Asia goes, I think Kuala Lumpur (Malaysia) offers excellent value for money (I have an apartment there). £50,000 will buy you a decent 3 bedroom apartment in a condo with shared pool, tennis court, security etc. The economy is growing at about 6.5% per annum. The country is politically stable. There is strong demand for housing from the young, urbanising workforce. Rental yields are about 7-8%.

I have heard that Bangalore (India) offers some of the highest rental yields in the world (more than 10%) but I've not read much about it. Certainly India is growing strongly.

Sri Lanka is more risky as it's economic and political situation is not that stable. However, property prices are very low so when the country does stabilise I think property prices will multiply.

Overall, I feel that property in North America, Europe and Australasia are overvalued and that stockmarkets are fully valued. So what does this leave?

 

[The Soup Dragon]

AnotherPropertyGuy. You have had some interesting responses which will no doubt result in you researching one or two more seriously. I tend to agree with Eastern European comments here. Was very intersted to hear that Sri Lanka interests you. I'll forward a PM to you on this as I too am interested in that area. I suggest that if either of us find anything interesting there we let the other know!

 

[Creative Source]

Sri Lanka???

I am interested by the couple comments about Sri Lanka. I am born and bred British but my parents are Sri Lankan and I go back often as we have a family home there ( Mount Lavinia). I am going there on holiday in a couple days in fact and will no doubt do some property hunting.
The Colombo properties are not cheap. They are over inflated by the demand from the rich expat communities in England, Australia, Canada and the US. I don't think there is any money to be made in Colombo property. Outside Colombo on the sea front is definitely the areas with potential and a lot of Germans abd Austrians have bought there. There may be restrictions in place n how far one can build houses from the sea front after the Tsunami struck.

CS

 

[AnotherPropertyGuy]

I am going there on holiday in a couple days in fact and will no doubt do some property hunting.

Have a great trip to Sri Lanka CS. I'd be very interested to learn of what you discover regarding property while you are there. I also feel that the coastal regions, particularly in the south, have great potential. What I like about it is that even were an investment not to rise in value, the Sri Lankan people are warm and friendly, the climate is pleasant and the scenery is beautiful. So really, you can't lose.

Merry Christmas all.

 

[Ginger]

UAE is still a place to invest, it might slow down in couple of years, but prices are still growing well, 10-15% increase in the market predicted next year as per Dubai One TV channel... and this is for ready-to-move-in property, imagine how much you can make on off-plan...
Is is not as crazy as it was 3-4 years ago, when people made 3-5 times their money, but... can be serously considered I am sure...

 

[propertastic]

UAE is still a place to invest, it might slow down in couple of years, but prices are still growing well, 10-15% increase in the market predicted next year as per Dubai One TV channel... and this is for ready-to-move-in property, imagine how much you can make on off-plan...
Is is not as crazy as it was 3-4 years ago, when people made 3-5 times their money, but... can be serously considered I am sure...

I think UAE is getting close to saturation now. From what I have heard, the main debate there among people in the business is whether the market will be oversaturated by 2009 or 2010.

There is just so much property due for completion over that there period that it's hard to see where all of the people will be coming from in order to rent it.

 

[AnotherPropertyGuy]

UAE is still a place to invest, it might slow down in couple of years, but prices are still growing well, 10-15% increase in the market predicted next year as per Dubai One TV channel... and this is for ready-to-move-in property, imagine how much you can make on off-plan...
Is is not as crazy as it was 3-4 years ago, when people made 3-5 times their money, but... can be serously considered I am sure...

Where is the demand coming from in the UAE? I thought the native population of UAE was pretty small. After all, it was pretty much desert until recent decades wasn't it? In this case, there won't be much support from locals propping up the market.

Is the demand coming from business people moving to UAE for work? Is there much demand from holidaymakers?

 

[sreejith_m]

Demand in UAE is always on high from last 3 years and as long as the tax free environment prevails , business will always boom with overseas companies keeping their eyes open to dubai market and jobs also will be simultaniously in plenty and as far as culture and lifestyle is concerned Dubai is one of the best cities in the world . Its peaceful , infrastructure is on par with metro scheduled to complete in 4 to 5 years and new roads opening up , city getting spread , good rental returns , more malls and lots of entertainment avenues opening up . I always feel Dubai is the best place to invest with attractive Home loan payment plans where you start paying only after handover and whether you are planning to rent or sell it you get best deals more than you can imagine.

 

[alice_chained]

Actually UAE is at it's peak at the moment. It is the right place to invest, the ROI at the moment is outstanding.

The reason for this is that, the property market recently opened up in Dubai a few years ago. Previously, expats were not allowed to own properties in Dubai. It has opened up and the demand for property is still a lot more than the supply.

With the rent caps gone in Dubai, the mortgage market will grow, and End users will seek their own accomodation to reside in.

It is worth noting that there will always be a shortfall in Supply, wheres as the government has given a target of 40,000 complete units per year, howver the labor ministry is approving 200,000 visas per year. Whereas 80% will be white collared salaried clients who will need a place to stay,

Dubai being the commercial fligh hub and financial hub in the Middle East has a long and promsing future ahead.

Kind Regards,

Amin Badshah.

 

[AnotherPropertyGuy]

It is worth noting that there will always be a shortfall in Supply, wheres as the government has given a target of 40,000 complete units per year, howver the labor ministry is approving 200,000 visas per year.

That's a powerful statistic. Could you add some links to further sources where I can read more about that? Or perhaps a property report for UAE from a neutral source? I still know very little about the region and would like to become more informed.

 

[propertastic]

I have always thought that the best investment in Dubai would be dormitories.

The last statistics that I heard is that the population of Dubai is comprised as follows:

15% Native Arabs
20% White Collar Europeans
65% Gastarbeiter from poor Muslim countries (Pakistan, Bangladesh, Phillipines, etc.)

These gastarbeiter need someplace cheap to be housed. I get the feeling, however, that the vast majority of housing being built is targetting the super-rich and that supply in this area will soon outstrip demand, whereas you will never go wrong at the bottom end of the market because every one new white collar resident is going to need two or three blue collar workers to look after him/her.

 

[The Soup Dragon]

I am interested by the couple comments about Sri Lanka. I am born and bred British but my parents are Sri Lankan and I go back often as we have a family home there ( Mount Lavinia). I am going there on holiday in a couple days in fact and will no doubt do some property hunting.
The Colombo properties are not cheap. They are over inflated by the demand from the rich expat communities in England, Australia, Canada and the US. I don't think there is any money to be made in Colombo property. Outside Colombo on the sea front is definitely the areas with potential and a lot of Germans abd Austrians have bought there. There may be restrictions in place n how far one can build houses from the sea front after the Tsunami struck.

CS

Enjoy your trip. Would like to hear how you got on when you return. I'm particularly interested in key tourist type developments that come along which are exempt from the 100% property tax. (I'm assuming the tax still applies - I know it had been scrapped, but was re-introduced after the tsunami to help the Governement raise funds. Only a smattering of key touristic developments have been exempt from the tax.)

 

[World IR]

Asia countries esp Singapore, Bangkok, Vietnam properties still got further upside

 

[Ginger]

I have always thought that the best investment in Dubai would be dormitories.

The last statistics that I heard is that the population of Dubai is comprised as follows:
15% Native Arabs
20% White Collar Europeans
65% Gastarbeiter from poor Muslim countries (Pakistan, Bangladesh, Phillipines, etc.)
These gastarbeiter need someplace cheap to be housed. I get the feeling, however, that the vast majority of housing being built is targetting the super-rich

This is all a bit overrated - what you posted above.
65% cheap labour in the country? Disagree...
Super rich housing for 100 000 $ for studio? Prices are higher in most of the big world cities!..
As well the fact that all the gastarbeiters as you say rent the same houses but live together, sharing the accomodation...

Putting all that apart, there a few world-known huge companies relocating head quarters here from the states, moreover, as someone said you should see how many residence visa approvals Immigration gives each month - you will get convinced that demand on property will exceed the supply at least for 4 years more... You just need to source the local newspapers like Gulf News and Property Weekly, and brouse the web for some different independant sources - and see it all yourself!

 

[Tim10]

You might want to consider North Cyprus. I have bought several properties there and the capital appreciation is also good. With the prices in the North half the price of property in the South, coupled with intense international pressure to solve the conflict ongoing from 1974, this area may very well see a capital appreciation of 100% in the next two years.

Spain is out and so is Italy. Other options may be Malaysia and Panama. Stay away from areas that are based on only tourism because the market tends to shoot downwards in a hurry once the trend in tourism goes elsewhere.

 

[Breyer]

I suggest staying away from any Islamic countries whose governments are unstable and are under constant threat of radical militants -- and Egypt is such a country. Once the aging Mubarek dies and is no longer president -- the Christain hating clerics are going to have their militants take over the regime.

Countries like Turkey, North Cyprus and Israel are good investments in this area and are among the world's emerging markets.

Anyone investing in Egypt should think three time -- and then again -- before doing so!

 

[Tim1979]

I suggest staying away from any Islamic countries whose governments are unstable and are under constant threat of radical militants -- and Egypt is such a country. Once the aging Mubarek dies and is no longer president -- the Christain hating clerics are going to have their militants take over the regime.

Countries like Turkey, North Cyprus and Israel are good investments in this area and are among the world's emerging markets.

Anyone investing in Egypt should think three time -- and then again -- before doing so!

Can't say I know a lot about Eygpt, but if you're considering North Cyprus then please tread carefully. Land disputes arising from the "Cyprus Issue" are a real problem in that area and unless there is traceability on what you are buying all the way back to pre-1974 then walk away (anything that has this tends to be more pricey anyway). I visit Cyprus at least once a year and have friends who have lived in the North (and are involved in a long-runnig dispute over a property there) and as much as I love the place I wouldn't put my cash there - North or South - at the moment.
If you are prepared to accept that much risk, there must be places that could offer better returns anyway?

 

[Rammah]

I suggest staying away from any Islamic countries whose governments are unstable and are under constant threat of radical militants -- and Egypt is such a country. Once the aging Mubarek dies and is no longer president -- the Christain hating clerics are going to have their militants take over the regime.

Countries like Turkey, North Cyprus and Israel are good investments in this area and are among the world's emerging markets.

Anyone investing in Egypt should think three time -- and then again -- before doing so!

Israel? You call that a good market to invest in? Who will hold the property title deeds?

 

[Markp]

Where to invest?

I am surprised no one has mentioned the "ermerging" caribbean markets.
Caribbean has established tourism, giving really good rental incomes and there is still some really good value there, if you buy in the right areas.
You also have hundreds of millions of holidaying Americans on ther door step for resales which is when most people take the real profit.
On top of this some of these countries are activily encouraging overseas buyers and overseas investment making exit strategies and the tax positioning attractive for any capital gains made.

Not to mention the holidays! All in all good returns for medium to low risk
Funnily enough i can suggest a few specific places if anyone wants to hear more!
Mark

Israel? You call that a good market to invest in? Who will hold the property title deeds?