Foreign investors drawn to Australian property market

Property in Australia used to be popular with British investors and also investors from New Zealand and the United States.

The economic downturn in these countries has led to a decreased number of investors, although recently the slack has been taken up by investors from the Far East, especially in certain areas of the country, which has proved very beneficial for the Australian property market as it has sheltered it from the worst of the economic downturn.

Australian property prices did decline during the worst of the downturn, but the news is getting a lot less gloomy and prices look set to rise as investment from overseas buyers returns.

The reason for this increase is because Australia is seen as a safe haven for investors who are looking for secure growth and who see huge capital gains to be made from buying into a depressed market.

The mortgage market for locals is difficult meaning that foreigners can easily outbid native buyers. Estate agents have been quick to exploit this trend with property exhibitions being arranged in major Asian cities.

There is little doubt that there are property hotspots around the country, especially in major cities where substantial investments into infrastructure are taking place.

The majority of the population live in the cities, and the capital of Perth is set to expand as massive construction projects are planned for this area, and also for Adelaide and other regional centres.

Foreign investment looks set to increase and the possibility of good returns looks set to continue especially while the more traditional markets of Europe and the United States remain in a state of flux.

Turkey to be Overseas Property Hotspot in 2011

Write About Property’s Liam Bailey has predicted that Turkey property will be the hottest overseas property investment in 2011. Bailey pointed out his surprise that he would do so, having been a staunch member of the “Turkey-needs-EU-membership” brigade until this year.

Bailey cited the excellent fiscal management by the AK party, which has focussed on paying down public debt even while its neighbours and competitors (Greece, Portugal, Spain) were running up huge tabs. On top of that, the banking reforms made after the Turkish financial crisis in 2001 left them able to withstand the crisis.

This left Turkey in a strong position when the crisis struck, because liquidity was high, and it was also able to lower interest rates as a measure of budgetary management rather than purely a alarmist way of fighting of the crisis. This calm, measured response increased the confidence of investors,

But, said Bailey, "what really sums up present day Turkey vis-a-vis worthiness as a property investment destination, with or without EU accession, is the great irony of Turkey ending its reliance on IMF assistance less than 1 year before Greece and Ireland would need such assistance.

"The balance of stability, high growth, high liquidity, low property prices and low interest rates is sure to make Turkey property a favourite with investors in 2011," he said.

Bailey said in other statements that Istanbul property was one of the top choices with pure investors, which are becoming more common in the Turkish property market, on top of the already strong holiday property market.

French Alps Just Got Even Better for Skiers

The French Alps have always been a popular tourist destination, especially for the ski season. More and more Britons are choosing to ski at least once a year, and many will jump at the chance to go skiing over a long weekend, especially with new flights from London City airport to Chambery giving them extra flexibility.

Chambery airport offers easy access to such well-known resorts as Val d’Isere and Tignes. It is estimated that over half a million people from Britain already own property in this area which is still ripe for development. Just an hour from Chambery airport is the village of Saint-Martin-de –Belleville which is part of the Three Valleys area. This is in one of the largest linked ski areas in the world as it has over 600 km of ski slopes and 200 ski lifts.

However tourist accommodation here is still at a bit of a premium with only two and a half thousand beds available which makes it an excellent place in which to own a second home. You can buy reasonably priced one and two-bedroom apartments which are fully furnished and have access to an indoor swimming pool, spa and gym, and they are located at the bottom of the slopes. Far more people choose to rent an apartment when they go skiing than to stay in a hotel giving owners excellent returns on their investment.

These types of apartments will bring in rental year round as during the summer months it is a popular holiday destination, but there is no doubt that it is during the winter months when the highest rental returns will be guaranteed, with the added bonus for owners of being able to leave work on a Friday only to be on the slopes a couple of hours later.

Costa Rica Setting out its Stall to Attract Foreign Investment

The predictions are in for a 6% growth in the Costa Rican economy next year, amid a determination by the government to cut through red tape and spend heavily on turning potential growth into sustainable growth with investment in infrastructure and socio-economic development projects, including superhighways, other construction and pro-growth incentive packages.

Costa Rica is very much committed to enticing investment and business from abroad as well, in fact so much so that China has invested massively in developing the Costa Rican infrastructure as it sees the Latin American country becoming one of its main trading partners.

Costa Rica also has a massively growing tourism sector. According to official figures the sector has been growing at 8% per year for the last 10 years, and recently it has become a massive hit with the growing wave of eco-tourists, which looks set to accelerate growth further still.

The country has two major international airports, and the completion of new motorways means it now takes just one hour to get from the capital city of San Jose to the town of Jaco on the coast. English is widely spoken in this country making property transactions much easier to understand. These factors will continue to increase the number of visitors and the need for accommodation.

Foreigners are also, not only allowed but encouraged to buy property in Costa Rica, where they enjoy the same legal protection and rights as Costa Rican citizens. Another incentive is the lack of effect from the financial crisis felt in Costa Rica, due to the fact that there was no indulgence in the sub-prime game of Russian Roulette that western banks played and lost.

That said: property prices in Costa Rica did fall slightly, but this was as a result of a drop in buyers from the US and Canada as fear set in into 2009, but now fear is subsiding the buyers are returning.

Investment Growing in London Property Market

Last month the London area experienced an increase in property investment activity after a long five months of stagnation. Perhaps this is the beginning of a renewed interest in foreigners seeking to make real estate investments, which would make the owners of luxurious residential properties very happy.

It seems that Britain’s residential property market is a booming market right now. With countries such as Greece, Ireland, Portugal, and Eastern Europe experiencing a debt crisis, investors are eyeing London and seem to have increased confidence in the investment potential and significant rate of return of British properties.

According to Knight Frank, November saw a greater demand for luxury property but the amount of properties decreased, creating a competitive edge among real estate investors. It seems that now is the time to get an affordable investment.

A 9 percent increase in residential property values increased in November for homes that cost one million pounds or more. Growth has been evident all year with an 11 percent increase in luxury property prices, tempting investors to capitalize on the stable and growing property market.

It has been reported that there was a 23 percent increase in the amount of continental Europeans who were interested in buying residential properties in London since last year. Out of all the purchases in Central London, 60 percent of the buyers were foreign investors. With prices remaining at 14 percent lower than the last time they peaked before the financial crisis, it is no surprise that overseas investment in the London area is so popular this year.

Economic Growth Gives Turkish Property Complete Investment Package

The Turkish government needs to increase its growth forecast after an 18.9% increase in industrial production in October, came the calls from Ali Babacan the Economy Minister.

“Industrial output increased by 9.8 percent in October. The recovery in Turkish industry started in October 2009, and now we see a significant increase in the industrial production index. This shows that we, as the government, need to revise year-end growth expectations upwards,” he said.

After a reminder that the Turkish economy grew 11% in the first half of 2010 Babacan went on to say:

“The European Union, the International Monetary Fund [IMF] and the Organization for Economic Cooperation and Development [OECD] indicate their year-end growth rate expectations for Turkey as 7.5, 7.8 and 8.2 percent, respectively. This shows that Turkey will be the fastest growing nation in Europe; both this year and next year. Turkey also has the lowest public debt to national income ratio in Europe.”

According to Aydin Cakir, director of Antalya based Turkish property agent New Home in Turkey, the economic growth adds another string to Turkey’s bow, making it even more attractive to overseas property buyers.

“While pure residential investment is growing, most who consider investing in Turkey property are looking at the holiday lettings potential. This class of investors is told to look for accessibility, a long season and a strong infrastructure on and off season. Turkey’s top destinations have always offered these things in abundance, and recently the number of flights is continuously increasing,” he said.

“A strong and stable economy is also something to be looking for, and while Turkey’s economy grew strongly during the boom, EU membership was hoped for to aid stability. But now, the reforms Turkey has made in aiming for EU membership have paid off in making it one of the strongest and most stable economies in Europe. We are predicting sales of property in Turkey to soar in 2011.

UK Housing Market Bottoming Out???

Oh my god, I thought I had seen it all in the press coverage of the UK housing market boom bust boom bust, but I have been proven wrong yet again.

In the This is Money publication one Adrian Lowery writes:

"House prices fell 0.7% in the three months to November compared to the same period last year, figures revealed today - the first fall on that measure since November last year. But Halifax also said prices dipped just 0.1% last month, encouraging hopes that the housing market is bottoming out."

Bottoming OUT??? How can a market that has only just started a fresh round of falls be bottoming out?

UK house prices fell sharply in 2008, but started rising in March 2009. In March 2009, after many months of falling prices totalling a decline of between 10% and 20% depending on the index, claims that the rises showed the market was bottoming out were at least plausible it not particularly well founded.

Well founded or not, fuelled by weak supply as people kept their houses off the market rather than pay the £100 required to get a HIP rise UK house prices did, and until August this year they did, again depending on the index. So now, with some indexes only registering falls for one or two months we can't say bottom out? Even if the minor falls recorded by the Halifax are the last falls we see they would only be showing that the market is levelling off, not bottoming out.

Maybe I am being a bit harsh, but I wish writers would engage their reason operators before opening their ledger.

South Africa Highlighted for Investment Potential

The investment opportunities in the Cape region of South Africa has been growing and is expected to be a prime area for foreign investors to take advantage of this potentially profitable season.

Part of the confidence and stability has come from the recent football World Cup which brought a good number of visitors to the area. Director of Ronnie Matthew Estates, Audrey Matthews, states that property along the Atlantic coastline have been stable despite falling prices around the world.

The coastal area is a beautiful place to live with its breathtaking sea views and close proximity to the beaches. It is a well sought after area to reside, especially the Atlantic Seaboard area. The beauty is hard to match with the view of the Twelve Apostle mountains against the magnificent ocean. The potential of long term investment opportunities is favorable as this coastal property becomes more and more popular.

Investors are doing their homework by taking the time to research this area and compare it to other possible foreign investment areas and have found out that the return on long term investment is comparable with other hot property markets around the world.

Cape Town is becoming more and more a choice for retirement and holiday homes, as well as a choice location for tourists. With the economic growth predicted to remain steady for the next ten years, it is anticipated that the property market will increase as well, inviting foreign investors to sow into this beautiful area