It is very easy to list a large number of developed property markets around the world such as the UK, US, Australia and many more. These are all countries which in the modern day are seen as stable from a political and an economic standpoint. Perhaps we should remember that there are very few countries around the world which have enjoyed a stable political and economic background since their creation. Indeed, are there any?
Recently we saw a post on the property forum highlighting the potential benefits of property investment in Angola. How many property investors out there have even looked at Angola as a potential home for their investment funds? Is your first impression a war-torn African nation in turmoil?
Don’t let past reputation stop your research
It would be foolish to suggest that Angola, as one example, has fully recovered from its years of external and internal fighting. These conflicts wreaked havoc on the economy and the political scene although slowly but surely overseas investment is now making its way into the country. Historically there has been a strong dependency on the oil price (and mining commodities to a lesser extent) and obviously this has been impacted of late by the collapse in the oil price.
The member who posted on the forum has an in-depth knowledge of the country, foreign investment numbers and the short, medium and long-term outlook. The short to medium term outlook is challenging to say the least because of the oil price and the relatively weak worldwide economy (which will impact mining commodity prices) but what about the long-term prospects?
Begin your research from day one
While it would be foolish to suggest that historic reputations do not have an impact upon property prices, and other investment assets, it would also be foolish to suggest these predisposed ideals cannot change. Why not take a look at the Angolan property market as an example of how a country can turn itself around from the depths of despair, internal conflict and financial collapse?
Unfortunately it can be very difficult to research an area of the world where many of the headlines are negative even if there is scope for optimism. It is vital that you dig below the surface, look at the facts and figures and try to forecast the future direction of the economy and the long-term stability of the political scene. You may be surprised to see many countries perhaps have much better prospects in the longer term than the worldwide media were suggesting in the short to medium term.
Unearthing a gem
If you’re able to look at the facts and figures in the cold light of day and make a rational decision on a market which had perhaps a chequered past and a bad reputation, you could unearth a gem. The simple fact is that if the country continues to grow from an economic standpoint and the political scene remains stable then overseas businesses and overseas investors will eventually stand up and take note. If you are able to jump the gun and begin building up your exposure while the country is still under a cloud, is this not a good situation to find yourself in?