Why not diversify your portfolio with property investments in the rapidly emerging global markets for stronger returns.
A recent survey carried out by GFK NOP for Bradford and Bingley* suggests that confidence in buying to let in 2007 is higher than last year. 55% of landlords surveyed said that they plan to buy another property however with the average total returns on UK buy to let investments at 13.3% (Paragon Mortgages Nov. 2006), are there other property investment opportunities available elsewhere for sophisticated landlord investors seeking higher returns?
Globalisation has meant that the world is now our back yard. Investors are no longer limited to their own region or country and are able to take advantage of exciting opportunities overseas. The emerging markets of Eastern Europe for example have vastly opened up since the fall of communism (and maybe have emerged!), they are still welcoming foreign investment and supporting development to boost their economies. It is in countries such as Bulgaria and Romania, EU members as of 1st January 2007, and Croatia and Montenegro, who are expected to join by 2010, where interest in property investment is high and profit margins are too.
The population of new and proposed EU joiners is massive, 24 million in the 2004 joiners and 30 million in 2007. The EU investment being directed to these countries will help to raise local incomes and that, combined with the expected deregulation of mortgage laws, will allow nationals to fulfill their hunger to upgrade from communist to private property ownership. In addition to this there is significant interest from foreign nationals, holiday home owners, expats and international companies, in purchasing property in these countries for both capital gain and rental income. But can you achieve higher returns than in the UK?
The answer is definitely yes but the key is to invest at the early stages of a project, as a joint venture partner. It is widely accepted that the significant returns are made through property development itself and so by coming in at the early stages of acquiring land and seeing the project right through until completion and sale will give you a real share in the developersâ€™ profits.
An example of such investment opportunities are the 4:Property Projects operating in Eastern Europe including Bulgaria, Croatia, Montenegro and Romania, as well as other active markets worldwide. Managed by experienced investor Chris Howard these â€˜hands offâ€™ projects offer a minimum entry level of just Â£25,000 for sophisticated investors, projects have a duration of 1 -3 years and expect annual returns of between 20% – 50% depending on the project. Each project is researched in great detail and utilises 4:Propertyâ€™s local contacts and investment experience to source a variety of locations including ski, capital and tourist areas. Chris Howard comments, â€?The 4:Property Projects, suitable for high net worth individuals, allow each of us to invest directly in profitable developments in active property markets in a straightforward and transparent manner. As a joint venture partner, investors are able to enjoy high returns without the hassles of hands on property ownership making them perfect for the sophisticated investor seeking to diversify their portfolio with property investments overseas.â€?
Chris goes on to say, â€œThe concept is particularly interesting because the investor can benefit at any or all stages in the project: land purchase, achieving increased value through gaining planning permission, share in development profits or purchasing completed properties for later appreciation. We always encourage investors to follow good practice and spread their investments. To be more certain of good returns, we suggest investors consider placing funds in a number of separate activities or projects, whether with us or other providers. That way the broad investment portfolio allows you to rest easy and not be over-dependent upon any one investment; it is just the common sense approach.â€?
If you therefore are considering releasing equity to fund the purchase of another property then consider the opportunities to invest in active and emerging markets overseas. Instead of purchasing a single buy to let property in the UK why not spread the investment across a number of property projects and receive very healthy returns. For more information please contact 4:Property now on 01383 623322 or visit www.4you.uk.com.
*A survey of 3,617 UK landlords carried out by GFK NOP on behalf of Bradford & Bingley, the UKâ€™s leading lender of buy-to-let mortgages, Dec 06. The survey was carried out via a questionnaire sent to landlords across the UK in the Mortgage Express â€œB2Lâ€? magazine.
4:Property advises all investors to seek professional financial advice before making any investments.
For media information, please contact:
Amanda Billige, Ashton Billige Property Marketing Ltd Tel: 01306 877800