Investment Property Overseas

I now invest around 50% of my capital in investment property overseas, and would strongly recommend investors look at overseas investment property when looking for opportunities.

The key reason for this is there are some economies growing at 3-5 times the rate of the UK economy as a whole, and there are many housing markets at very early stages – with finance markets only just opening up – offering huge potential. I would always look for a combination of undervalued markets, growing economies, a stable legal and political environment, and significantly strong leverage – the rates of borrowing – available to foreign investors.

Combine all these factors and several countries and cities will stand out. For instance I recently looked at one country that has had a lot of press as potential area of investment, but I found prices/m2 pretty high and no finance available yet, while a nearby country has prices/m2 almost half, with 70% finance available – a huge difference and shows one country in a far stronger light.

Countries like the Czech Republic and Poland, Turkey and 2-3 others will be prominent for us this year.

Again just as in the UK, there are some great opportunities if you follow some sensible logic and understand the economies – but there are also opportunities that will lose you money.

When looking at investment property overseas, steer clear of over valued markets where rental markets are patchy and supply outweighs demand – often a problem on new coastal resorts. I always look to buy where the locals are buying ie where there is a strong local market and strong economy – this will usually be large cities and towns in emerging countries. Those investors who bought in our developments in Brno, Wroclaw, Vilnius and Istanbul last year will have all done well, and those markets will continue to have excellent opportunities.

So overall 2008 should prove a fantastic year – great opportunities in the UK and with investment property overseas – buy in undervalued markets with good leverage available and good rental markets where locals buy, and you will continue to do very well whether is in County Durham in the UK, Moravia in Czech Republic or Istanbul in Turkey. Look out for some excellent deals coming through from us – in several markets we know well, and a few new ones!

To ensure you receive news on the as soon as they are finalised, add your details below - our deals often go within 24 hours!