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Originally Posted by vendot
care to elaborate on those regions??!?!?!?!?!?!??!?!?!?!?  |
OK.. Usually these regions, least from the one's I know of, are "exotic" in nature and the main reason for the high appreciation is the numbers of people wanting homes or second homes in these locations (apart from a quota of "mobile" people like webmasters).
If we forget the middle of the Pacific Ocean and similar places (tho they are very good), - can use prime example of where I am now - Costa Rica.
The govt stats I quoted for capital appreciation (40-60%) apply to Costa Rica. Can't remember the exact stats, but eg construction permits have been increasing around 70% each year and likely to continue like that for a good few years ahead yet. If I were to guess - would think for at least 10 years tho after that it's hard to predict (tho makes little difference since there is little chance of property decreasing in value in these areas).
Can't remember all the countries listed, but Biz Weekly did a listing of the top real estate investment opps in the world a while back and Costa Rica was in the top three.
The same can probably be applied to much of the Caribbean area tho, simply because they are islands and little space available, the entry level is inclined to be higher, but they still show very good results. A similar country to Costa Rica, and in some ways better, is Panama where real estate is prob a couple of years behind CR, but following the same pattern.
Got a few friends here doing the same thing as us, but actually making a biz out of it - one bought a largish land area for.. around $4.5 mill, got a surveyor in and plotted it out into "home plots" and sold them all within 11 months with a sale value of $48 mill. Been doing the same thing, but specialising in more eco-orientated property - can think of one land investment that cost just under $2 mill about 4 years ago and it's worth approx $13-14 mill now and still appears to be doubling each year.
This type of investment is nothing like that in "industrialised countries" - seriously don't think I could have done the same in the UK or US. It's more "niche" with high appreciation. Another factor is it does not involved more work or expense - just sit on it and it earns - not the same as renting out property and having the hassle of dealing with people (tho there is money in that, but just don't have the time).
Basically, it's a matter of knowing the market - tho this familiarity can be gained as a "hobby" and there are some clues on the net - tho net prices are inclined to be over-stated and local prices somewhat lower.
Think it was early March - we did an exhibition at Earls Court on property here which was more from an investment angle than actual property sales - that resulted in a hell of a lot of people in the UK wanting to have a look at CR. Will prob do the next two exhibitions in Amsterdam and Frankfurt next - but need to deal with current backlog first.
From our angle, we need to find more large properties here with "features" and at a good price - that is a full time job and got two people working on it. We can then offer smaller investment plots out to anyone who wants them.
The market here was mainly from the US and Canada, but that is changing and more Euro folks are interested now - especially with GDP and Euro values against the dollar (btw - all property here is priced in US $). There are also new airfights started from the UK and EU direct to CR - so makes it easier to travel.
It's prob worth having a look around the net and checking out ... mainly the Caribbean and Latin America regions and getting a clue from that. There is another country which appears to be going upwards, but have never really looked hard at it - Morocco. There are plenty eyes on Morocco now and some very substantial development underway or planned.