Time To Invest In The Global Real Estate Market?
/Where To Buy Global Property?
First Published Date: May 04, 2009
It cannot have escaped anyone’s attention that much of the world is at the moment in the grip of a financial crisis that has hit all sectors hard, but none more so than the real estate market. The fact that the crisis is global has meant that even the good old standby of moving into the next country to invest has lost some of its appeal as an idea, as it is just as likely if not more so, to see your investment fail to some up to the standards you had hoped to reach. In light of this, it becomes a matter of looking further afield. While this is the most internationally damaging property crisis most of us have ever seen, there are some countries that have weathered the storm a good deal better than others – and are presenting opportunities for the real estate investor to spread their wings.
Take any of the world’s heavyweight economies, and right now they are doing a pretty good impersonation of a defeated heavyweight boxer – slumped on the canvas with a bloody nose and black eyes. Some, like Canada, have fairly superficial damage compared to others, which have been pummelled to the extent where they are barely recognizable. Meanwhile, some of the less heralded countries are doing just fine, because they did not fall into the trap of building an economy on unsustainable lending, nor have they been closely linked with the countries who did. And these countries are the ones where it may well be worth having a throw of the real estate dice. Their economies are stable, prices are lower than in the more bloated economies, and the countries themselves are beginning to carry some real weight in the financial world.
The truth of the matter is that, a few decades ago, people would have laughed long and hard at the idea that Poland or the Czech Republic would be worthwhile sites for real estate investment. Right now, judging by the Polish Prime Minister’s recent jibe at UK Premier Gordon Brown, the laughing is going in the opposite direction. Poland as a nation declined to move towards a credit-based economy and as a result is doing just fine. Real estate opportunities are popping up all the time and this seems likely to continue with unemployment on the way down.
Alternatively, you may want to invest somewhere warmer. The opportunities on offer in the North of Africa now might be just the thing for you. Like Poland and the Czech Republic, Morocco has thrived while more illustrious near neighbours have taken a beating. Property prices are on the rise there, but are still well below what you would pay in a bigger economy, and Western investors are getting in there with its proximity to Europe making it a beacon for the region’s tourist industry. The coastlines of this African paradise are breathtaking, and just the kind of thing that would look perfect on a property portfolio. Dare you take the plunge? It could be the best decision you ever make.
To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on May 4, 2009.