by international market expert – Fiona Bosticky

Every where you look at the moment, there are investment properties available in nearly every country around the world.  Every agent you speak to will throw numbers at you explaining why their country and their development is the best investment.

So how do you really know, which is the best place to invest in property overseas?

At Fresh Property Co, we believe the best places to invest are locations that meet a certain criteria:

• Stable Government
• Improving and Growing Economy
• Housing Shortage
• Existing Local Rental and Re-sale Market
• Undervalued Property Prices
• Foreign Direct Investment

We have previous experience selling properties to investors in the markets of Latvia, Lithuania, Berlin, Romania, Bulgaria and Montenegro.  And these markets have had fantastic growth, and created some very wealthy property investors.

But now investors are looking for “the next big thing” and a chance to “get-in-early”.  And our research has led us to some surprising markets, that will steam ahead over the next 5 years, despite any American crisis.

1. ALBANIA

It wasn’t that many years ago that people were shocked if someone mentioned they were buying in Bulgaria.  But now it is surprising if someone hasn’t seriously considered investing there.

Albania currently suffers the same old stigma.  But on closer inspection, the picture looks completely different.  Yes the country still has its problems, from power shortages to corruption.  But once you visit, you cannot help but see the potential in Albania, and how everything is now changing.

The government is already in discussions with the EU, and entry is currently set for 2014.  The government is very determined to improve the economy and encourage foreign investment.  New car dealerships and telecommunications offices are opening and personal lending and mortgages are now available.

Property is fantastically undervalued -and very affordable – from £20,000, and builders now must comply with strict building regulations.  The only problem at the moment is that foreign investors wanting to buy off plan property are facing tough competition from locals and Albanian nationals living abroad.

Lastly, Albania is a beautiful country – the people are friendly, the beaches are clean, the water is crystal clear and the food is tasty.  Also in summer, accommodation is so tight that you must book in advance.

So with meeting all the “best place to invest” criteria, we highly recommend Albania.

1. BRAZIL

Over the past 12 months, Brazil has started to appear on the radar of property investors.  With such a progressive president, the economy and infrastructure in Brazil will only improve.  Also Goldman Sachs argues that the economies of the BRICs (Brazil, Russia, India and China) are rapidly developing and by the year 2050 will eclipse most of the current richest countries of the world.

But it’s such a big place (the 5^th largest country in the world), so how do you know where to look?  We believe if you focus on areas where a lot of Brazilians are living and buying, you will not have to worry when it comes time to sell.

We like the big cities of Sao Paulo and Rio where luxury 2 bed apartments are around £70,000 and you can easily find a long term tenant with a rental yield of around 10%.  And popular holiday and city locations like Florianopolis in Santa Catarina and Salvador in Bahia.  As well as other big holiday destinations like Porto Seguro in Bahia and Fortaleza in Ceara, which are expecting huge capital appreciation with prices for luxury apartments from £60,000, and rental yields from 15%.

The tourism potential is huge.  Only 8 hours flight from Europe, no hurricanes, and year round summer weather are proving to be a holidaymakers dream.

Also with mortgages becoming available shortly for foreign investors, this will only continue to push up prices.

Again, meeting the “best place to invest” criteria, we highly recommend Brazil.

1. ARGENTINA

Argentina is on a roll.  The economy is taking off, exports are “through-the-roof” and property prices are still fantastic value.

This has created a market for a serious investor, who is happy to invest with cash, and take advantage of some serious potential gains.

But what has happened in Argentina to create this potential?  In 2001-2002 Argentina suffered an economic crisis.  After the crisis, the government’s response was fast and decisive.  By December 2005, as a result of successful negotiation by President Kirchner, Argentina was able to manage their huge foreign debt and get the economy back on track.

Industries flourished, and produced goods with competitive prices in the international market. This created an increase in exports and associated taxes that have provided a positive balance of trade, cash flow and reserves.

Tourism is now booming, and the WTTC states that “Argentina travel and tourism is expected to generate ARS 84 Billon (US$26.6 bn) of economic activity in 2007, growing to ARS 206.2 bn (US$46.1 bn) by 2017.”

Now there is renewed confidence in the economy and in the property market.  Locals and international investors are noticing the affordability of the property in Buenos Aires especially.  On average, prices for apartments in the capital are US$1,800/sqm.  Also Country Clubs near Buenos Aires are growing in popularity to allow the wealthy Argentineans a home away from the hustle and bustle of the city.

Now is the best time to invest.  We believe real estate prices will enjoy sustained growth over the next decade, and that traditional mortgages will become available in the future. When this does, property prices are going to continue to escalate.

All in all the future is looking very bright for Argentina and its economy.  Therefore, meeting the “best place to invest” criteria, we highly recommend Argentina.

In Summary, Albania, Brazil and Argentina are currently our best places to invest overseas.  But we are constantly researching markets with high potential, like Asia.

For latest news and investments contact us on 0208 820 0 820 or email us below:

cforms contact form by delicious:days

At Fresh Property Co we have a very strict criteria for selecting locations for property investment.  Finding very good investment properties in the Northeast of Brazil, particularly in Natal, is near impossible.  The Northeast is the poorest part of Brazil, and most of the locals cannot afford the properties in the area much above £30,000.

So we head for locations like Florianopolis (Floripa), which is in one of Brazil’s wealthiest states in the southeast, where the rich Brazilians and Argentineans like to holiday:

Why Florianopolis?

Florianopolis, the Capital of the State of Santa Catarina, is both a city and an island in Southern Brazil.  It is composed of one main island and one continental part and the surrounding smaller islands.  Affectionately called Floripa, it is a beautiful and magical city and it is currently inhabited by approx 406 thousand people, a number that triples every Summer.

Florianopolis is quite modern, with shopping centres, chain and high-end restaurants and many glamorous nightclubs.  The city is the technological pole of the IT industry and has excellent infrastructure: two popular universities and private faculties, and facilities for tourists including thermal spas and hotels.  The roads and highway system serving the city are also very good.  It is one of the capital cities with the best quality of life in Brazil.  And it is a city that can be visited at any time of the year.

There are 42 beautiful beaches in and around the Island.  It is difficult to choose the prettiest beach, or the most romantic lagoon. The magic of this island captivates everyone who visits it.

Over the last years it has became one of the most popular destinations in Brazil, for people who are looking for superb beaches, beautiful scenery, interesting culture and friendly people. It has also experienced a property boom, with Brazilians, especially from the states of São Paulo and Rio Grande do Sul, looking for a better quality of life away from the chaos of the big cities.

Climate

Located in the subtropical coastal region, the city offers a great climate.

International Airport

The International Airport Hercílio Luz, which is just 12 km from downtown, receives domestic flights from the country’s capital cities and also from Buenos Aires, the Capital of Argentina.

In Summer, Florianópolis Airport is one of Brazil’s main destinations for national and international tourists. With a capacity of 1.2 million passengers a year, in 2003 it received 1.28 million passengers. As the current terminal was too small for the quickly growing city, construction work for a new airport supporting 2.7 million passengers a year was tendered in 2005 and will be finished shortly.

Tourism

The State of Santa Catarina is one of the most sought-after travel destinations in Brazil and South America. Tens of thousands of Brazilian and South American tourists – such as Argentines, Paraguayans, Uruguayans and Chileans flock to the state’s beaches from mid December to late January – seeking the diversity of the coast.

The island has the most varied types of beaches.  It is the paradise for swimming, snorkeling, surfing, windsurfing, sailing and fishing.  Surfing is a serious activity here. So much so, that a monument has been built to commemorate all the great surfers that have come from this area.  There are also other activities available including paragliding, kayaking, mountain biking, hiking, bird watching and walking tours.

There are also excellent golf greens and clubs, such as the Joinville Country Club and the Costao Golf Club in Praia do Santinho.

Tourism is one of the staples of Florianópolis’ economy.  It is considered by many locals and tourists that Floripa has a singular beauty endowed with strong lines of Azorean culture, observed in the buildings, workmanship, folklore, culinary and religious traditions.

Events

• World Surf Competition (WTC)

Florianópolis is the main location of the WTC, which classifies 50 competitors, among professionals and amateurs.

• Divine’s Feast

Takes place 40 days after Easter, when a group of people takes to the streets to participate in an imperial procession. There are band presentations and typical local food kiosks.

Praia do Canasvieiras (Beach)

Located in the north of the island of Santa Catarina, the beach is a little over 2 km long. From the beach, it is possible to see the Ilha do Francês (Frechman Island). The waters are turquoise, and mostly calm and the temperature varies between 23 and 26oC in the Summer. The white sand belt is narrow and on warmer days, when the beach gets really crowded, it is advisable to try to arrive early to find a clear spot. At night, tourists and islanders have a lot of fun at the local bars with live music or at one of the local nightclubs.

Economy

Florianópolis’s economy is based on commercial business, public services, transformation industry and tourism.  Recently the clothes and IT industry have been experiencing great development.  Local industries currently produce metallurgical and electrical communications equipment, pharmaceuticals, plastics, and perfume.

One of the “10 Most Dynamic Cities”

Between 1970 and 2004, Florianópolis’s population tripled. So did the number of shantytowns. But the local economy grew fivefold,

and incomes grew in step. Opportunity seekers, urban and rural, white collar and blue, poured in. With a hundred or so beaches lining the “magic island,” tourism is thriving. And while many Brazilian cities are struggling to graduate from smokestacks to services, Florianópolis is succeeding. Thanks in part to a federal rule that for decades barred heavy industry on the island, town stewards promoted cleaner public works, and wound up with a network of public and private universities that make this one of the most scholarly cities in Brazil.

To tend to the demanding academic crowd, the city invested heavily in everything from roads to schools, and now Florianópolis ranks high on every development measure, from literacy (97 percent) to electrification (near 100 percent). By the late 1990s, private companies were flocking to the island, or emerging from a technology “incubator” at the federal university. (Among the innovations it hatched: the computerized voting machines that have made Brazilian elections fraud-free and efficient.) Local officials now say their aim is to be the Silicon Valley of Brazil, with beaches. Don’t count them out.

-Mac Margolis 2007 Newsweek, Inc.

Summary

Due to the tourism and the booming economy, property prices are taking off.

This island maintains very strict zoning regulations to keep over 60% of the island as protected nature reserves. For this and several other reasons, the island is currently seeing a very rapid growth rate in building development, population, and in property values, as people from around the world are flocking to this magical paradise island.

Location

Fresh Property Co sold out of our development in Floripa, however we are currently looking for new Floripa opportunities.