Where is the Sophisticated Property Investor Putting his Money?

The Traditional Favourites

Over the last five to ten years, UK investors buying property abroad have generally stuck to the traditional favourites Spain, France and Italy. With prices a fraction of those in the UK and a guarantee of more sunshine, these markets offered plenty of scope for capital appreciation, rental return and holiday home use. However as prices have steadily risen in these countries, yields have hardened in response and an eventual over-supply particularly in parts of Spain has occurred. In today's environment property investors are looking further East for yield and capital appreciation opportunities.

Emerging Markets

A year ago ten more countries joined the EU, expanding not only the Union, but the hunting ground of the international property investor. Most investors have come to the conclusion that the market cycle here in the UK is at it's peak, and the more sophisticated investor has already started moving his money into the new EU countries. Many astute investors started buying there a year or two before EU accession, particularly in more developed cities like Prague and Budapest where the real estate markets were relatively more mature. So prices in these cities had already increased by up to 25% in the year up to May 2004, however there is still a long way to go especially in the other capitals of this region.

It's Just Economics!

Putting your money into an emerging market surely has to be profitable because by the very definition of 'emerging', you should assume growth, and therefore return. EU accession is a massive catalyst to the growth of an economy as the EU is committed to backing these countries in a bid to creating comparable economies to those of it's current members. Government incentives, new political regimes and tax reforms are creating an ideal climate for foreign direct investment, higher employment and GDP growth, which all directly affect the property market.

The relative attractiveness of the older EU capitals from a corporate location point of view is changing according to a DTZ report on the Emerging EU economies. The report concludes that Bratislava, Berlin, Prague and Budapest will be the main beneficiaries in this new economic geography mainly due to their location and catchment areas, the associated low costs especially labour, skills base and the economic growth prospects of these four cities. In less than a year since the 10 countries joined the union this is already evident, particularly in Bratislava as Slovakia wins some of the biggest foreign investment contracts in the region.

Going Forward in 2005

I think most would agree that for long term steady growth complemented by relatively few risks investing in bricks and mortar at home in the UK cannot be beaten for a good solid pension plan. Over the last 10 years the more adventurous have strayed off the beaten path to Spain, Italy and France in search of holiday homes and to diversify their portfolio. There is now however a new and far more exciting playground for us property investors which is sponsored by the European Union, has the most diverse culture in the world, it's experiencing unrivalled GDP growth and it's property market is currently way undervalued.

Not only has the UK property market levelled out, it looks to stay that way for the next couple of years and the traditional overseas investment spots seem to have lost momentum and have been overshadowed by something bigger. The pioneers have cleared the stones from the road to Eastern Europe and 2005 is a great time to arrive at the party!

Bruce Stronge is one of the founding partners of Slovak Investments, a company offering the complete Slovakian property investment solution for foreigners. Newsletters, European property market news and new deal alerts are available at the company website http://www.slovakinvestments.com

---

Real Estate Investors: How to Get a Powerful Marketing Education for Free

I am a total geek.A few weeks ago, late at... Read More

Evil Gains Entry

When we open our doors to strangers, we can never... Read More

Real Estate Web Design - 3 Items You Must Include on Your Site

Real estate web design requires you to do things a... Read More

4 Dangers In Flipping Real Estate

If you have recently purchased some real estate for investment... Read More

Dont Get Stuck Having To Deal With The Sellers Household Hazardous Wastes - After You Move In!

I have a confession to make!I was just outside with... Read More

I Already Have an MLS Listing, Why Do I Need an Internet Ad?

In today's real estate market, astute buyers are also looking... Read More

Dont Forget to Ask About Restrictive Covenants

Homebuyers, especially first-timers, may not think of asking about restrictive... Read More

The Bubble Effect

Turn on the TV at almost any time day or... Read More

Real Estate Investing Produces Extraordinary Profits

Imagine making $5000 a year from real estate investing without... Read More

Personal Debt Can Disappear When You Set up a New Business

I teach students how to set up a new business... Read More

Home Equity Loans ? Beware of Appraisal Fraud

A new report by the independent Demos group has revealed... Read More

Selling Your Home ? Alone or with a Broker?

How do you decide whether to sell your home (or... Read More

6 REASONS for Investing in Florida Real Estate Investment Property NOW

I invite you to take the next few minutes to... Read More

Las Vegas Real Estate - Luxury Properties

Las Vegas is known for it's over the top hotels... Read More

What is a Loft Apartment?

What is a loft apartment? At the most basic level... Read More

Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor!

I have been a mortgage lender for many years and... Read More

Buying Rental Property - Avoid Sellers Tricks

Be careful when buying rental property. We stayed at a... Read More

Real Estate Website Marketing - 5 Steps to Crushing Your Competition and Doubling Your Business

Getting your real estate website more traffic is easy if... Read More

How to Achieve Financial Freedom with Your Home

The secret disclosed on how you too could achieve financial... Read More

One Stop Shop for Buy to Let

As the buy to let market continues to go from... Read More

Selling Houses: Flooring & Feelings

Buyers think they love Italian tile and other hard floor... Read More

Making Money In Real Estate - 10 Ways

Making money in real estate is an endless topic that... Read More

Negative Gearing ? It?s Not to Your Benefit!

The concept of negative gearing has been originally developed to... Read More

Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage Programs

There's no question about it: Buying a first home is... Read More

Investing in Real Estate Profitably: Financing Options for Purchase of Rental Houses, Part 1.

This is not an article about tricks for 100% (no... Read More

Rehab Foreclosed Houses the Right Way and Keep All the Profits!

I've been teaching people how to buy foreclosure properties for... Read More

Property Investment: Spoiled for Choice in Europes Emerging Markets

You could be forgiven for thinking that property is the... Read More

How to Prequalify a Buyer When You Sell Your Home By Owner

One questions many "for sale by owner" sellers... Read More

Real Estate Development Feasibility Study (Income) - $1.2 Billion Developer Tells You How To Do One

There are two sides to a feasibility study and in... Read More

The Secret to Maximum Real Estate Profits: Lighting

Lighting is the most important detail of interior Design Psychology... Read More

Why Average Sale Price Statistics are Misleading

One of the most common statistics used when gauging the... Read More

Pricing Your Property

A house properly priced is half sold. But there are... Read More

Rehab Your Way to Wealth: The Quick Way to Fixer-Upper Success

Completely rebuilding a house is not necessary to make money... Read More