 Nowadays it is cheaper and easier than ever to fly abroad. So, if your summer holiday has left you wanting more, it could be time for you to buy a place in the sun.
Going through the house buying process in the UK is a big task, so doing this in a foreign country is bound to seem daunting. Don’t worry; here are some handy tips to help you buy that property abroad successfully.
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1 Be under no illusions: buying property abroad is not a quick thing to accomplish. You should be prepared to spend up to a year from deciding to buy to moving in.
2 Assuming you’ve decided to move to a particular country, go to the relevant country’s embassy or consulate. There should – should – be a number of things they can do for you, including advising you about work permits and taxation issues.
3 Check out the planning permission rules in the country you’re moving to. It may be that you’ll need extra permission to renovate the property or that there are restrictions on what you can do while living there.
4 Get a good lawyer in the country you’re moving to; he or she should be able to speak fluent English. However, do not rely totally on your lawyer: it is essential to do your own research – knowledge is power.
5 Consider renting a home in the region first so you can get a feel of how tenable living there will be. Transport links, shopping, leisure – all will become clear once you actually live there. Not essential, but not a bad idea.
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 The
property market of Bulgaria has achieved an incredible rate of growth
over the past few years, bolstered by a fast-growing economy and its
admission into the EU in January 2007. Property prices in some regions
have risen by over 50% in the last two years alone, and are predicted
to grow at the rate witnessed during the Spanish market boom, and the
figures all point towards a fantastic opportunity for property
investment.
The Knight
Frank Global House Price Index, which analyses house price growth
worldwide, ranked Bulgaria as having the second highest annual house
price growth up to the third quarter of 2006 with an incredible growth
of 32.1% up to the third quarter of 2005, and with a 19% increase up to
the third quarter of 2006. Indeed, Knight Frank’s head of residential
research Liam Bailey has described Bulgaria as"one "Property prices in some regions have risen by over 50% in the last two years alone" |
of the big winners" in capital growth since 2000. In addition to
this, Bulgaria was found to have the second highest level of house
price growth throughout Central and South Eastern Europe in 2006,
according to the Royal Institute of Chartered Surveyors' ‘European
Housing Review 2007’, figures that have been welcomed by investors in
Bulgarian property and that bode extremely well for capital growth over
the coming years. Following the impressive annual
capital gains averaging 30% in recent years, Bulgaria’s property
market’s more realistic annual growth rate of 15% up to the third
quarter of 2006 sets the pattern for more predictable and sustainable
long-term investment. The country boasts low prices despite its
admission into the EU in January this year. Upon joining the EU, the
cities of Warsaw (Poland), Prague (Czech Republic) and Bratislava
(Slovakia) climbed more than 10 places in the ‘Mercer Cost of Living’
survey. Bulgarian property remains up to 40% lower priced than in these
example countries. However, prices are predicted to rise accordingly,
as traditionally occurs following accession to the EU, assuring
property investors of significant capital growth and a secure
investment. |
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 Channel 4's list of 'Top 20 places to make money' "According to PricewaterhouseCoopers, Cyprus is an attractive place for investment." |
According
to the Republic of Cyprus Statistical Service, 2.4 million tourists
visited the islands in 2006. As a former British colony with strong
links to the British military, it is not surprising that over half of
tourist arrivals are from the UK; in May 2007, 156,000 of the total
273,000 visitors were British. Tourist receipts are growing
year-on-year, up 2.4% in 2005 and 2.2% in 2006. The strategic location of the island, its excellent
climate, and the well-developed infrastructure are just a few of the
advantages that give the island its edge. What's more, a new investment
law passed in July 2003 by the House of Representatives positively
welcomes foreign investment, providing it doesn't have adverse
environmental effects.
The
Greek Cypriot economy is prosperous, greatly benefiting from EU
membership, and is on course to adopt the Euro by January 2008, as
stated by the Ministry of Finance. The Central Bank of Cyprus states
that the island's economy ischaracterised by robust macroeconomic stability; a view supported by
the favourable evaluations and comments of the European Commission, the
International Monetary Fund, and other influential international organisations. During the period 2000-2005, real
GDP grew by an average of 3.6% per annum, according to Central Bank
figures, which compares favourably with the EU average. GDP for 2006
was 3.8%. With entry into the EU, the island's
previously closed buy-to-let market has opened, and the Cypriot
property market has experienced strong growth, earning a place on
Channel 4's list of 'Top 20 places to make money'. The programme claims
that prices have rapidly risen over the last few years with increases
of up to 20% per year. Some properties have doubled in value and over
the next ten years an average return in the region of 188% is
predicted. This view is supported by the Cyprus Home Price Index, which
has registered price rises of 16.65% per year over the three years
since its introduction.
Knight Frank is upbeat
about prospects for the Cypriot property market and predicts that
average property prices on the island will appreciate by 12.5% in 2007.
They rank Cyprus as the fifth best potential return in Europe and the
best 'established' market with five times the estimated growth of
Portugal or Italy.
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 Real
estate investment opportunities in Argentina are beginning to rival
those in more well-known emerging markets, in part due to the country's
rapidly growing economy. With GDP rising by 8.5% in 2006 alone and
further growth of 7.5% predicted for 2007, Argentina possesses a strong
economy that provides solid potential for investors. Combine this with
a government backed tourism industry which has grown 10% year on year
since 2003, and property prices which have risen 50% since 2002.
According
to the Argentine real estate trade group, Camara Inmobiliaria
Argentina, housing prices have increased 50% since 2002, while The
Guardian reports that Argentine property prices have been rising
steadily over the last few years, with house prices in the Buenos
Aires' wealthier districts up by as much as 25% last year alone. Yet
although real estate prices have soared, they still look surprisinglycheap, with "The Guardian reports that Argentine property prices have been rising steadily over the last few years" |
prices in prime real estate locations still only one-tenth of what they are in the United States and Europe. The
rapid increase in house prices has left the market out of reach of many
Argentineans, creating a high demand for rental properties and thus a
superb opportunity for the real estate investor. Rentals can also prove
profitable for the buy-to-let investor. In major tourist and business
areas in Argentina, apartments are often provided fully furnished, at
prices lower than the better hotels. Online booking agencies make the
process simple and profitable for the overseas investor.
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 Carnival time? Brazil has
fast developed into a sound economy with a fiscal and political
environment conducive to growth. Despite the country’s vastly improved
economy, living costs in the country are still substantially lower than
in the UK. It is anticipated that as the population becomes wealthier
as a result of economic and tourism growth, demand for property will
increase prices. Prices are still low enough currently, however, to
provide excellent, aggressive investment returns with notable capital
growth and relatively high yields. "Property prices in some regions have risen by over 50% in the last two years alone" |
These
factors are expected to boost the mortgage market; up to this point
borrowing to purchase a property has been rare in Brazil (22% of the
population have a mortgage, against 70% in the USA and Europe,
according to The Daily Telegraph), but the potential for demand is
immense. Banks will respond to this by diversifying to offer more
products, therefore boosting market growth and demand for property.
Domestic demand is particularly strong outside of the big cities, as
Brazilian parts of the country. Demand from the construction sector has
also grown, as a result of tax breaks implemented by the government as
part of their program to accelerate growth. |
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 With a new 'open skies' policy bringing in low-cost flights, a €2.2 billion government investment in infrastructure and a growing reputation as a playground for the rich and famous, Morocco is on course to almost double tourist numbers by 2010, presenting an excellent opportunity for overseas property investors.
Moroccan tourism has been growing steadily since the turn of the century, with visitor numbers standing at 6.5 million in 2006, a rise of 12% on the previous year. Meanwhile, Morocco's revenue from tourism rose 30% to reach 53 billion dirhams (approximately £3.2 billion), according to the Minister of Tourism and Craft Industries, Adil Douiri. This is largely thanks to King Mohammed VI's Azure Plan and Vision 2010, which aims to increase tourism to ten million visitors by 2010, providing 20% of GDP (Source: Financial Times). This includes a major investment in transport, facilities, and services, including the introduction of new tourism opportunities such as golf. Naturally, the growth of the property sector will expand as a direct beneficiary of these positive developments.
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 With strong long-term economic growth, decreasing inflation, and an upsurge in both demand for short-term rental accommodation and second properties, Egypt is proving that it is more than just the home of ancient culture and the Pyramids. Among the many factors joining together to make Egypt a hot prospect for the property investor is the record number of visitors that the country is attracting.
The 'feel-good' factor engendered by upward economic trends and tourist numbers has inevitably had a positive knock-on effect on real estate. Investment in Egyptian property is offering great opportunities for purchasers especially at this early stage of the vibrant fledging market.
Major cities are currently attracting as much as 25% annual capital growth |
There is increasing tourist demand for short-term rental accommodation in the resort areas on both the Red Sea and Mediterranean coasts and property investors have enjoyed the best rental yields in the country from their activities here.
Meanwhile, as more overseas buyers seek holiday homes and second homes in these resort areas the second home re-sale market has started to show profit potential over and above the initial capital outlay. Egypt's proximity to the European mainland and renewed tourist infrastructure mean that this market keeps on growing as holidaymakers see the potential for owning another property in an attractive, exotic location.
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 The residential property market in Malaysia was only opened up to overseas investment at the end of 2006, yet it is already attracting high levels of interest from shrewd speculators. With tourism growth at 6.8% per year, and economic growth at a three year high - both backed by positive government initiatives to encourage foreign investments - it's easy to see why. Furthermore, the widespread use of English, combined with the same systems of law, property ownership, and corporate governance as other Commonwealth states, simplifies the process for all concerned, making Malaysia an ideal investment opportunity.
Another significant initiative for overseas investors is the movement 'Malaysia My Second Home' (MM2H). This campaign, aimed at foreign retirees, has so far attracted almost 10,000 participants from the UK, Japan, China, among others. This not only boosts the real estate "Knight Frank noted a strong second half performance in the capital's property market in 2006" |
industry directly, with an increased demand for second homes and retirement properties, but also has a secondary effect through increased numbers of friends and relatives who visit the country.
Foreign Direct Investments account for about one-third of total private
investment in Malaysia. Gross FDI for the past decade has remained
steady at a level of US$4.7- 5.3 billion in each year, reflecting the
reassuringly stable economic conditions for foreign investors (Source:
Department of Statistics Malaysia).
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 As the closest tropical islands to Europe with stunning white sandy beaches and clear turquoise warm water, it is not surprising that Cape Verde was one of Channel 4's “20 Best Places to Buy in the Sun”, while the BBC's Holiday programme described it as, “the next potential holiday hotspot”. With the Cape Verde government investing heavily in infrastructure and tourism as their top priority, opportunities for the discerning overseas property investor are there for the taking.
Cape Verde's tourist industry is growing rapidly, increasing by 12.7% between 2000 and 2003, and 15.6% between 2004 and 2007, according to the Millennium Institute, and this growth looks set to continue. A statement released late last year by government spokeswoman Cristina Fontes Lima, said the number of tourist arrivals from 2006 were set to increase at an annual rate of 22% (Source: Arfol News), while some projections suggest that by 2015 as many as 1,000,000 tourists will be visiting the islands each year, forecast National Statistics Institute (INE). Cleary this demand will fuel a booming real estate industry with a wide range of projects available to foreign investors. |
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