International Property Investment Hotspots

Property investment is one of the securest, and most
recession proof methods of investing. However, many
personal investors limit their portfolio by looking close
to home.

Many investors have made millions. British investors
started investing in Spain in the late 1990s. Now, many of
those properties, purchased for less than $50 000 are now
worth more than 1m.

At first glance, many new real estate investors are
attracted to hot spots. Unfortunately, many areas, like
the Black Sea coast are over developed, or where
construction is a full time nuisance.

Spain is another long time hotspot. However, things cooled
last summer when more than 100 new homes were sold to
retired foreign residents for more than $200 000 each.
Within months the government demanded they be demolished
because they were built on rural land, not zoned for
residential development.

Bulgaria is another 'worn out' hotspot. Property investors
need to be willing to hunt down good deals. It was the
'hot spot' for property investors until it lost its appeal
due to over construction.

The price quality ratio is out of balance in Bulgaria,
especially in places like Sofia. A savvy investor can
still find a good deal in a prime location, but the
imploding population is causing concerns. Investors are
worried that no one will rent the 3-4 bedroom "luxe"
apartments in a country where the social trend is leaning
toward childless couples. There is a risk that the supply
will soon exceed the demand.

Investor analysts still suggest that a good location will
generate more profit when rented to American tourists. The
devaluation of the US dollar makes unusual tourist areas
more attractive. US travel agencies now report a steady
interest in both Bulgaria and Romania. They cite diversity
of entertainment, and low cost air fair to many Baltic
states by German and US airlines.

This means that investors who are looking for long term
profits may find that a bed and breakfast, or renting to
tourists, will earn a profit in the interim, while
protecting their equity.

Arlette Adler from the Federation of Overseas Property
Developers, Agents and Consultants (FOPDAC), claims that
Bulgaria's property market has reached saturation levels.
This means that there are still some deals for first time
buyers hoping to invest abroad, but little for the serious
investor.

"The more serious buyer is looking at [other eastern
European] countries and considering them," said Adler.

"The thing that is bothering many of us [about Bulgaria]
is that they are building all over the place," she added.

Specialist house TRI Investments warned property investors
to avoid European holiday destinations such as Bulgaria,
France and Italy.

FOPDAC also announced that the emerging markets in
Croatia, Montenegro and the Czech Republic may offer fast
profits for daring investors.

South Africa remains a hotspot for investors who are
willing to put some effort into building their portfolios.
However, no one has to step in blind. Experts are
suggesting that investing is moving beyond South Africa.
Growth in other areas of Africa is precarious, but
promising. The risks are higher, as is the potential for
profit.

Investors who want to minimize risk are following the lead
of the large property management companies in South
Africa, taking advantage of their `inside' knowledge of
the continent and its growth trends.