Property Investing in Emerging Markets
Have I missed the boat?
Although property are still doing relatively well in the UK and Europe, most of these countries have seen a decline in growth over the past few years. Finding an investment in these countries on a short term investment basis is becoming more and more difficult, and not recommended by many professional investors. In slow markets it often takes 1-3 years to make back the fees incurred when buying a property. These fees, ranging from 4%-12% of the purchase price include government, legal and financial costs.
Investing in Emerging Markets on the other hand offers great opportunities and you don't have to tie your money in for too long. Bulgaria and Romania will almost certainly join the EU on January 1st 2007 making an investment in these countries very attractive. Currently property prices are still low, with interest rates being relatively high. History has proven property prices to rise substantially when countries join the EU, with interest rates normally going down to follow EU interest rate trends. The increase in rental return together with 2-6 years guaranteed rental offered by countries like Bulgaria gives investors peace of mind and the opportunity to buy into a self financing apartment.
Several articles and tv documentaries have been seen lately on these countries with romania being named as no 1 of 20 best places to make the most money on channel4. Bulgaria was named top 10 british tourist destination in the financial times and the telegraph
Several specialist companies offer exciting opportunities in both countries. Many companies provide free investment guides to benefit investors. Using these guides not only give investors quality information on the area but also outlays the processes to follow when making an investment. A few of these companies are Lets Talk About Property and Investment Romania
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