2 Jul 2008

Emerging Markets; get in at the beginning

Investment Property Sales in Emerging Markets

As an investment asset, overseas property is as popular as ever. If you are looking to invest in property for the future contact us for up-to-date market information. Finding suitable 'buy to let' property, holiday or retirement home or development opportunities in emerging property markets requires a service that recognises the need for attention to detail. Planning with your tax and investment advisers is a service which we will add value to your property decisions.

How do you make real money? Most investors answer that if you put your money into brilliant companies, brilliant sectors and brilliant countries, then hang on, you’ll end up rich. We disagree. When something is that good, most people know about it already and your purchasing price is going to reflect that, which will limit your returns even if things go as well as the market expects.

The key to wealth is to make investments “where outcome exceeds consensus expectations”. If the consensus is that something is a basketcase and it turns out instead to be merely mildly mad, or even a recovery candidate, “it’s a sure-fire way to garner riches”. The more widespread the pessimism about an asset class, the more the odds are stacked in favour of “the early and the brave”.

Britons looking to expand their portfolios in emerging overseas property markets have been advised that they could face lower returns if they wait and follow the crowd.

Off Plan International has said that individual investors face being crowded out of the market if they wait just one or two years after a market has become more well-known.

However, the firm acknowledged that it was usually better to look at the capital city of a country, adding that press coverage and word of mouth encouraged investors to move to particular places.

"My advice for people if they are looking to invest in small value, one or two properties, is to look at capital cities within a country. They are more expensive than other parts of the country but you are not going to lose," noted an Off Plan International spokesperson.

"If you are a smaller investor, in a place that's been a hot spot for a year or two, you need to be careful where you invest.

"In areas where there is a lot of investment going off, where there is a great choice of properties, it may not be the best place for an individual," the spokesperson concluded.

For foreign property investors or those resident outside the UK, we also provide special guidance on tax and management of property investments in the UK.

Time for investment is now whilst these markets are still not on the lips of every investor.
These emerging markets offer a one off opportunity to benefit from low prices that are set to rise as the interest and demand increases.