Investing in property is an exhilarating but complex process, and it isn’t easy to succeed. Recently, even those people that have invested into politically and supposedly economically sound nations have been badly burnt or seen their investment stand still.
There is a lot to consider with property investment, including your budget, how much risk you are willing to take, usage of the property and so on. Thus, the best property investment for you might be quite different from other investors.
Still, there are a few places where property values are rising across the board, and investing in these areas can be rewarding. If you have the funds to play with and are happy to take on the risk, the following five countries could bring about a great return.
Brazil is set to be one of the top five economies in the world within 10 years, but property prices haven’t caught up. Brazil real estate is incredibly cheap compared to the booming economy. Brazil is one of the world’s leading exporters, especially in the food industry. Things will only pick up, with the nation’s tourism and hospitality industries increasing. The result is that experts believe Brazil’s property prices will increase by as much as 10% per year over the next decade. That’s pretty incredible growth, making investing in Brazil rather safe.
Investing in small nations with somewhat fragile economies is admittedly risky, but the potential reward in Albania is outstanding. Plus, the nation’s economy is probably more stable than you think. The government has managed it well over the past 10 years, and the nation’s productivity has soared over that time. Albania is set to join the European Union in 2014, at which time property prices will soar. Some experts believe real estate prices in Albania will rise 1,000% over the next 10 years (yes, you read that correctly).
If you are interested in a long-term investment option, consider the Philippines. The nation is one of Asia’s emerging markets, with the economy growing by an estimated 4% per year. Property prices in the Philippines are among the lowest in all of Asia, but they are ready to grow. The country lifted a ban of foreign ownership, meaning there is a sensitive window of opportunity to jump on real estate in the country.
Growing primarily because of agriculture, Tunisia is one of the world’s fastest-growing economies. One of the reasons Tunisia has such affordable real estate is that the country wouldn’t allow foreign investments until 75% of the country owned their homes. That barrier has been crossed, meaning now is the time to invest in property in Tunisia. The country is a great opportunity to make money because it has the prices of an emerging market, but the stable housing market of an established nation.
Panama’s economy is one of the few in the world that is growing, due in large part to a great geographical location. The Panama Canal is the only waterway that traverses Central and South America, and its uses are many. Services associated with its operation make Panama a low-risk investment area, and it is only growing. By 2014, the canal will be expanded to triple its current capacity. This all equates to higher property prices in Panama. Plus, a boom in tourism helps real estate prices as well.
Ultimately, your goal as a property investor is to identify properties that are undervalued. Most often, these properties are in nations with emerging economies. By identifying the countries and real estate that offers great investment upside without a lot of risk, you will be successful as a property investor.