Avoid Buy to Let in Emerging Markets
At all the property events I go to, I always see lots of nice models of far away places where developers are going to build lots of posh apartments right next to the beach.And yes, of course they look very nice.
And they are cheap too (at least compared to UK prices.)Some writers in the press may also have written favourably about them too (though bear in mind that some do enjoy paid for trips to see these places and have advertisers from the development at “Cape Sunshine” to please who wouldn't be happy if the piece were to say what a lousy investment it will be.)So what should you, the investor do?Well, read my book for a start! But if you are too lazy to do that, and you do nothing else, you must find out what else will be built near to that development.The reality is that in many emerging markets, land is cheap and governments and locals are keen to sell lots of it to Western companies.This means your apartment will end up competing with a host of others to be let out.So, if you do buy abroad, buy in areas where the local market will not be flooded by other investors. Stick to in inner cities with strong rental markets or find coastal areas or where rampant development is prohibited - this will usually mean sticking to well developed markets.
Copyright: David Lawrenson 2007. This blog is updated about three times a week.
We are http://www.lettingfocus.com/. What’s different about us is that we are unbiased, because unlike most people in the buy to let and property advice business we are not linked to a developer, agent or finance company. We just tell you all about buy to let and property investment - the good and the bad. Our owner, David Lawrenson, is the author of the UK’s top selling buy to let book (and the highest selling property book at Amazon.co.uk). He is a respected speaker, authority and consultant on residential property investment.
He runs sensibly priced seminars and a one to one consulting and coaching service. Find out more at http://www.lettingfocus.com/
And they are cheap too (at least compared to UK prices.)Some writers in the press may also have written favourably about them too (though bear in mind that some do enjoy paid for trips to see these places and have advertisers from the development at “Cape Sunshine” to please who wouldn't be happy if the piece were to say what a lousy investment it will be.)So what should you, the investor do?Well, read my book for a start! But if you are too lazy to do that, and you do nothing else, you must find out what else will be built near to that development.The reality is that in many emerging markets, land is cheap and governments and locals are keen to sell lots of it to Western companies.This means your apartment will end up competing with a host of others to be let out.So, if you do buy abroad, buy in areas where the local market will not be flooded by other investors. Stick to in inner cities with strong rental markets or find coastal areas or where rampant development is prohibited - this will usually mean sticking to well developed markets.
Copyright: David Lawrenson 2007. This blog is updated about three times a week.
We are http://www.lettingfocus.com/. What’s different about us is that we are unbiased, because unlike most people in the buy to let and property advice business we are not linked to a developer, agent or finance company. We just tell you all about buy to let and property investment - the good and the bad. Our owner, David Lawrenson, is the author of the UK’s top selling buy to let book (and the highest selling property book at Amazon.co.uk). He is a respected speaker, authority and consultant on residential property investment.
He runs sensibly priced seminars and a one to one consulting and coaching service. Find out more at http://www.lettingfocus.com/
Labels: buy to let abroad, buy to let in emerging markets
This entry was posted by lettingfocus, on
Wednesday, June 13, 2007.
