Where are the best places to invest in property in 2009

Question just received from client:

im interested in investing a small amount of money over the next year or two. i dont have much saved so was looking only at small investments and was thinking of property abroad. Im only young so dont mind waiting a while for profit. ideally a place i could rent while hopefully the propertys price increases would be ideal, any ideas ?

Answer:

We currently off 3 excellent country locations, Argentina, Brazil and Albania.

Since you don’t mention how much you would like to invest, I will give you an idea of where and what you can invest in:

1. Argentina

In Argentina, it is a cash market, which means no financing for foreign property purchasers. You can buy an offplan luxury city pad in Buenos Aires from around EUR50,000 – EUR60,000 with furniture. This amount can be paid over 2 years.

After completion you will be able to rent it for US$250 – $300 per week to holiday makers, which would generate a double digit rental yield. The capital appreciation will be pretty good as well, as these properties are in the best locations. Also the global crisis is stopping developers launching new projects which will create more demand for the ones they are currently constructing.

2. Brazil

In Brazil, it is also a cash market. Banks may be about to offer financing, but with interest rates around 12% – 13%, it may not be so good to initially take financing. We currently have off plan luxury apartments near Rio de Janeiro from EUR80,000 – EUR90,000. This would be payable over the next 12 months. The yields would also be double digits.

3. Albania

Albania, is a possibility because foreigners can still get mortgages at the moment (only citizens from US/ Canada/ UK/ Ireland/ Germany/ Italy/ Greece), up to 70% LTV, rates around 6%-7%.

You can buy an offplan city apartment, on the outskirts of Tirana from approx EUR25,000, which will be a good long term investment, which you can rent for around EUR150/month.

You could also get a new apartment with full sea view in Vlora from EUR65,250, which would have an outstanding rental return, as it could be rented to holiday makers in the summer from EUR25/night, and to students at the nearby university in the offseason.