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News: Egypt and Brazil top for 2008

Mon, 19 Nov 07

The best overseas investment destinations for 2008 are Egypt and Brazil, according to one expert...

 

With Christmas looming, many in the overseas property industry generally take stock of the year to date and look at the factors that have attributed to hopefully a successful year, but perhaps more importantly they look towards the New Year and the markets that are going to catch the buying public’s attention. Anthony Fernandes, Managing Director of SPC overseas looks at future trends and makes his own predictions.

Anthony says, “The ‘best place’ to invest, depends on so many factors of course; available liquid funds, financial leverage, time frame for investment, the requirement for immediate rental income and attitude to risk, topping the bill. However, let’s look at what is happening in the UK market first. The UK market is predicted to take a down turn, but despite this unwelcome news, this is likely to have a positive affect on the overseas market.

 

Safeguarding your financial future

 

Traditionally those investing in the overseas markets have been high income earners; however the UK economy is now dictating that we will see more investors from a wide range of social backgrounds investing overseas. It even points to a significant increase in the number of first time buyers looking abroad because the UK market is currently prohibitive due to over pricing.

 

In addition to this, there is a wide ‘understanding’ that by investing in pastures new, the general public can safe guard their financial future. Therefore traditional investments such as pensions, stocks and shares and other investment vehicles will probably see a slow down as monies are redirected into the exciting overseas property industry.”

The new breed of investor today has the added advantage of additional information through various means, but predominantly the internet. This means that investments are less from the heart and are more constructive in their approach. Potential investors can study countries and regions and look at potential infrastructural upgrades and any other factors that may prove beneficial to investing there.

 

Over-hyped Euro markets

 

There are currently many over hyped European markets enticing investors, but the reality is, despite their affordability they are limited by short seasons where investors will clearly struggle to rent and sell at a profit. Location as ever is the key. Developments close to the beach and golf courses will always remain popular, but extra caution should be given to areas that are seeing concentration of new developments. Oversupply can lead to poor returns.

 

Anthony continues, “City investments such as Berlin, Paris and Budapest will fare well, providing investors with strong rental returns and also continued capital appreciation over the longer term; however entry is often determined by financial budgets so this form of investment is not for everyone.

 

Egypt is a growing force that will continue to perform well; property here is easily affordable and Red Sea coast destinations such as Hurghada and Sharm el Sheik provide superb holiday destinations with unlimited amenities, thus making them an ideal location for those wanting a holiday home but with the added bonus of generating a rental income.

 

Top tip: Brazil

 

However my top tip for the New Year is Brazil. The North East of Brazil and particularly Natal is in its early days, but in my mind can be easily compared to buying in southern Spain 25 years ago. There are well published, major infrastructural improvements going on, such as South America’s largest international airport, which will be used as the hub for the region.

 

These massive initiatives coupled with more jobs, a growing economy, increased foreign investment, government promotion all add up to having a positive impact on the region as a whole and property prices. One has to remember that Brazil is only seven hours away from mainland Europe (the same as Florida) and those investing now will reap the rewards, much the same as Spain some 25 years ago.”

Anthony concludes, “In all destinations it is easy to buy ‘cheap’, but that doesn’t mean it’s a good investment. You have to consider the basics; location, accessibility and amenities. What infrastructural improvements have been approved for the area and what is your future exit strategy. Natal in Brazil does it for me. I can clearly see the potential and the growth; it is just a matter of time.”

For more information: http://www.spc-overseas.com

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