Montenegro might not be popular but could be a great overseas property investment
Overseas property investments made with hearts not heads
Thursday, 21 Jun 2007 17:25
Britons are not thinking when choosing where to invest in an overseas property - choosing to follow their hearts instead.
That is according to a new report from Foreign Currency Direct, showing well-loved holiday destinations such as Spain and France are the top choices when it comes to buying a home abroad, rather than places with better growth potential.
"There are so many more lucrative investment opportunities that could be made if the British public invested in properties in lesser unknown and up-and-coming destinations rather than in the traditional Spain and France," said Peter Ellis, chief executive of Foreign Currency Direct.
Foreign Currency Direct is advising people thinking about buying an overseas property to consider more original locations to invest in, and has produced a list of the top five up-and-coming overseas property hotspots.
Top five investment opportunities
Cape Verde
Cape Verde is a group of islands 385 miles (620 km) west of Senegal, West Africa in the Atlantic Ocean. This is the ultimate virgin property investment market where individuals can buy beachfront property at prices unobtainable in most other locations. Described as the "New Canary Islands" experts are expecting a large increase in the number of tourist visitors, which in turn should bring with it a booming rental market.
Morocco
Bordered by Mauritania and Algeria, Morocco is situated on the north-western tip of Africa. The coastline runs along the Mediterranean, through the Straits of Gibraltar to the Atlantic and a short 14km stretch separates Tangiers from Gibraltar and Spain. Property here is quickly becoming one of the leading luxury emerging markets. It is the very high build quality, the relatively low cost coupled with the year-round climate in most areas that is the driving force behind the continued development. The Vision 2010 initiative has six primary resorts marked for major investment and these will be the locations for most of the new property development in the near future.
Hungary
Since joining the EU in 2004, Hungary has evolved into one of the wealthiest and most stable economies in central Europe. As a result 25,000 foreigners have purchased real estate in Budapest in the last four years, by far the largest group made up of British and Irish buyers. The flow has increased again since the arrival of Budapest on the map for budget airlines. Outside of Budapest spa towns such as Zalakaros and the villages around Lake Balaton are proving popular, as is the region around Zala with quick access to ski resorts in Austria, Croatia and Slovenia.
Poland
Property in Poland is an increasingly attractive investment opportunity for overseas buyers, and since Poland joined the EU in May 2004, much of the red tape that used to surround the property market in Poland has been removed. It has been estimated that €15 billion will be invested into Poland from overseas over the next five years. That, combined with a strong economy and the introduction of the euro in the near future, makes Poland high on the list for many investors. Recent investors have received up to 30 per cent capital growth per year. Combine that with no capital gains tax when you sell your property after five years, or if you reinvest in another property within two years of the sale and you can quickly see why Poland is featuring prominently in investor lists as one of the key emerging markets to focus on.
Montenegro
Montenegro is a country that offers property investors some of the most exciting real estate investment opportunities in Europe at the moment. It is also a stunningly beautiful country recovering effectively from the ravages of war and positioned for EU accession talks in the near future making the future of Montenegro's economic development positive and making the country highly interesting from the property investor's point of view. The key to the profitability and attraction of Montenegro's emerging real estate market is the long-term future development of the country. The government of Montenegro is committed to working towards EU accession and as a result they are structuring their economy accordingly and if, as is expected, they achieve their dream of full EU membership they will benefit substantially in financial terms.