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Turkish rental market set to grow
Demand for rental accommodation in Turkey is likely to grow in the next few years, according to an expert.

Sarah Brown from NuBricks stated that holiday homes across the country would be in massive demand if "ambitious" plans to attract more tourists are successful.

The government wants to increase the annual number of foreign arrivals from 23 million to 50 million in the next 15 years.

Writing for the website, Ms Brown said that if it gets "anywhere near" this figure, a property boom is also likely to take place.

She commented: "Turkey could be a very interesting property market to watch over the next few years."

Ms Brown added that existing holiday homes in key tourist resorts will be particularly sought-after.

This will be good news for owners of investment property in Turkey who have already entered the market in these places, as it means they will be in line to collect strong returns.

Fri, 7 Mar 2008 00:00:00 GMT
African countries offer strong returns
Prospective investors in overseas property have been told that African countries could be highly lucrative.

Writing in the Times, Paula Hawkins recommended that people who want to collect strong returns on their investment should look outside Europe.

She said the rates of house price inflation in countries such as Cape Verde and Morocco are relatively high when compared with many short-haul locations.

Therefore, a property in the country is able to appreciate in value in a much shorter space of time.

This has proved to be tempting to many investors in recent years, as it means they can possibly sell their property on at a profit at some point in the future.

Ms Hawkins said this was a much better option for buyers of investment property than traditional markets in western Europe, such as France or Spain.

She remarked: "Investors tend to opt for popular holiday destinations rather than countries which offer the greatest opportunities for capital growth."

Earlier this week, the Association of International Property Professionals revealed that the number of overseas property transactions went up by 21 per cent to 240,000 last year.

Fri, 7 Mar 2008 00:00:00 GMT
Holiday home owners 'spend 4 weeks in property'
People who have bought holiday homes abroad only tend to spend about a month in their overseas property, new figures have revealed.

According to a study by HolidayLettings.co.uk, second home owners from the UK occupy their foreign residence for an average of four weeks, reports Homes Overseas.

This has prompted the organisation to suggest that they make the best use of their property during the remaining 48 weeks of the year.

Specifically, it has informed people of the financial gains they could make if they rent out their holiday home when it would otherwise be sitting empty.

Ross Elder, managing director of HolidayLettings.co.uk, commented: "There is a fantastic opportunity for owners of holiday homes to reap the rewards of the healthy rental market."

He added that mixed-use investors could earn an annual sum between £7,000 and £18,000 in rent per annum.

This comes after the Office for National Statistics revealed that almost 850,000 UK nationals now own a foreign property.

Fri, 7 Mar 2008 00:00:00 GMT
UAE Mortgages at a Mere 5%
Commercial Bank of Dubai (CBD) challenges all other mortgage providers in the United Arab Emirates with its mortgage loans from 5%, a substantial variation when compared with the lowest general market rate of 7.5%.

Mortgage lending in the UAE is a profitable business, with a total of 23 companies seeing unprecedented profit margins on home loans. AME Info, a leading provider of online business information in and about the Middle East region, reported on Thursday 6th March 2008, the decision taken by the Commercial Bank of Dubai (CBD) to offer mortgages for a stunning 5% interest rate.

According to AME Info, “It needed only one bank to break ranks in the UAE home loan market to bring about a revolution in the local mortgage market and a far better deal for the consumer. That has happened now.”

CBD, a well established and rather conservative bank, requires a flawless credit record in order to qualify for a mortgage. The credit assessment includes any other debts the applicant has as well as the size of the deposit on the property. However, AME Info reports that “its requirements are not difficult for senior expatriates.”

Thomas Smith, Deputy GM and Head of Retail Banking, told AME Info: “We are a bank so we have our own local depositor base. We pay less out to depositors if interest rates fall and can therefore pass that advantage onto our mortgage holders in lower rates. So if EIBOR falls, as it has recently, so will our mortgage rates.”

Smith continues to explain the reality of the UAE real estate market: “What we saw is that the whole property market was developing at enormous speed and that you need something special to stand out. But taking the best mortgage clients is a low-risk and not a high-risk strategy.”
In January, EFG Hermes published a study of the blossoming UAE mortgage market, which points to a ten-fold growth from $4.4bn today to $44bn by 2012. In the report, the premier investment bank in the Middle East and North Africa region stated: “Over the next five years we estimate a population increase of 1.4 million people (in Dubai), implying property transactions of $187bn,”

“Assuming that 21 per cent of this is financed (30 per cent of properties mortgaged with an average loan-to-value ratio of 70 per cent) this indicates a market size of $44bn, up from the estimated existing market size of only $4.4bn.”

Award-winning property portal, propertyshowrooms.com, registered record investor interest in Dubai in January 2008, increasing 366% in comparison with the 2007 average. Sara Romera, analyst at propertyshowrooms.com, explains: “In the last four weeks we have seen over 2,100 unique visitors view our Dubai pages. This falls in line with the success of Dubai products in our International Property Investment Network, where Eagle Heights, a development in Dubai Sports City, is performing outstandingly well.”

Investors seeking mortgage finance for purchasng investment property in the UAE will be enticed by the new lending strategy created buy the Commercial Bank of Dubai, as it can heavily reduce the cost of buying over the life-time of the loan.

Fri, 7 Mar 2008 00:00:00 GMT
Record Returns For Some UK Landlords
The North West, Scotland and Wales have registered record returns for landlords, particularly in the fourth quarter of 2007.

The latest quarterly report carried out by the Association of Residential Letting Agents (ARLA) is an interesting review as it is one of the few surveys carried out well after the credit crunch began to bite.

ARLA’s report focuses on returns from properties across the UK. In the last quarter of 2007, the two areas which performed regularly above average were the North West of England, Scotland and Wales. The average rate of return on cash purchase buy-to-let investments over 5 years is 10.81% per annum across the country. However, in the North West the figure rises to 11.03% and in Scotland to 11.07%, the two highest in the UK.

Scotland and the North West also featured on top for gross annual rental yields. The nation’s average stands at 4.81% whilst in Scotland we see this figure rise to 5.23% and 5.29% in the North West.

The survey also reflected that 9 out of 10 of those polled had no intention of selling their properties for at least another 17 years. UK buy-to-let investors are in it for the long term, with only 1 in 12 landlords expecting to sell their investment in less than 5 years and only 2% in under two years.

Head of Operations at ARLA, Ian Potter, explains: “The rental sector is the lynchpin for all our housing requirements and needs continual investment from private individuals as it still suffers from a lack of investment from the institutions.”

Overall, the percentage of landlords who believed demand for rental property was higher than supply was the second highest since ARLA’s surveys began more than five years ago. The figure has increased more than threefold, from 15% to 50%, in the last five years.

As a result of such encouraging figures, interesting property developments are underway in the UK with a view to creating more opportunities for the buy-to-let investor. High demand for property in certain key economic areas like Leeds has brought about new projects, such as Lumiere in Leeds, soon to be the tallest residential tower in the UK: Designed by Philippe Starck and his award-winning Yoo project team, “The investment offers a fantastic payment structure with an extremely low entry level arranged especially for International Property Investment Network (IPIN) members.

Featuring outstanding architectural design, the Lumiere building really is an investment opportunity not to be missed,” explains Sara Romera, analyst at propertyshowrooms.com. “Although this is a city centre property investment, it has a low entry with only 10% to pay before completion, 10% estimated capital appreciation and 6% estimated rental yields with some units free from Stamp Duty”.

Source: Association of Residential Letting Agents (ARLA) http://www.arla.co.uk/

Fri, 7 Mar 2008 00:00:00 GMT
Emerging Markets Offset Tourism Slowdown
The World Travel and Tourism Council has unveiled its latest research results which indicate the importance of some of the world’s emerging markets as strong sources of income for buy-to-let investors.

Tourism Satellite Accounting (TSA) research, based on the UN standard for Satellite Accounting, quantifies the wide-ranging economic impact of travel and tourism, providing solid, credible and professional statistics to assist in government policy and business decision processes.

The world’s travel and tourism industry is expected to generate close to US$ 8 trillion in 2008, rising to approximately US$ 15 trillion over the next ten years, according to the latest TSA research.

However, as a result of global economic downturn, TSA results reveal that the annual global growth rate of the industry will experience a slowdown in 2008, to 3% rather than the annual 3.9% we saw last year.

WTTC President Jean-Claude Baumgarten explained "Challenges come from the US slowdown and the weak dollar, higher fuel costs and concerns about climate change. However, the continued strong expansion in emerging countries - both as tourism destinations and as an increasing source of international visitors - means that the industry's prospects remain bright into the medium term."

However, those who are considering investment property for tourist letting purposes in Africa and the Middle East will be pleased to know that these regions are experiencing higher growth rates than the world average, at 5.9% and 5.2% respectively.

Middle East markets thrive

Considerable ground has been made by emerging markets such as Dubai which are experiencing rapid economic growth. John Walker, Chairman of Oxford Economics, explains, "In particular, China, India and other emerging markets are still growing rapidly, which will increase both business and leisure travel, while many countries in the Middle East are undertaking massive tourism-related investment programmes."

The United Nations World Travel Organization reported in October, through its World Tourism Barometer, that “In the Middle East, upcoming developments in destinations such as Abu Dhabi in the United Arab Emirates or the completion of the Palm Jumeirah in Dubai, will continue to mark tourism in the region, whose intra-regional traffic is expected to continue benefiting from increased disposable income as a result of rising oil prices.”

The International Property Investment Network (IPIN) highlights one of their key investment projects in Dubai: Eagle Heights. The development offers an opportunity to invest in Dubai’s tax-free society within the Sports City development, which is set to become the world’s largest sporting, cultural and lifestyle destinations. The project will be constructed to the latest of modern standards to include 14 floors enjoying direct views over the Ernie Els designed championship golf course and the Sports City central canal.

Sara Romera, IPIN Product Analyst, explains: “Apart from location, the project features further benefits such as a 3 year rental guarantee at 8% p.a., along with an impressive estimated 30% p.a. capital appreciation by completion in late 2009.”

Source: The World Travel & Tourism Council http://www.wttc.travel

Domestic tourism saves mature markets

Mature markets such as Europe, are falling below the world average growth at 2.3%; however, the Council stresses that “even in countries where economic growth slows, there is likely to be a switch from international to domestic travel rather than a contraction in demand for travel and tourism.”

A good example of strong domestic tourism demand is the fast emerging southern region of Calabria in Italy, which alone saw over 209,000 Italian visitors in 2006, with 2007 figures still under review. Indeed, prospects for buy-to-let investors in southern Italian regions are high: domestic demand, complemented by a distinguished international presence, creates a perfect combination for landlords looking forward to having as few vacant weeks a year as possible.

Fri, 7 Mar 2008 00:00:00 GMT
UK's Largest Shopping Centre in Glasgow
Glasgow is currently enjoying a healthy flow of property investment and as a city it ranks amongst the best in terms of positive income returns and rental demand in the UK. Its next claim to fame is the UK’s largest shopping centre.

In November, Glasgow City Council approved the outline planning application which will see Buchanan Galleries double in size. The completed centre, which is planned to open in 2011, will extend 1.3 million sq ft and will not be the only improvement in the city centre:

Buchanan Partnership (a joint venture between Land Securities and Henderson Global Investors) has committed to the extension of the shopping centre as well as constructing a new multi-storey car park on top of Buchanan Bus Station. In addition, plans are underway to construct a new pedestrian bridge connecting to the extension of the car park; develop a new atrium entrance to Buchanan Galleries and the Royal Concert Hall; build new retail frontage on Buchanan Street, Cathedral Street and Killermont Street, as well as improve Buchanan Bus Station to create a modernized transport hub for the city.

Nick Davis, Development Director, Land Securities, said: “Our development proposals will complement and enhance the existing retail offer in the city centre and will serve to strengthen Glasgow’s appeal to both tourists and the wider business community.”

Meanwhile, the Scottish housing market has been out-performing that of the UK as a whole for no less than 17 consecutive quarters. According to latest statistics produced by the Nationwide Building Society, Scottish property saw the fastest growth in the UK, rising in value by 1.8% in the final quarter of 2007, and averaging at 14% for the whole year.

Rental demand has exceeded expectations, with leading Scottish letting portal, Citylets.co.uk, registering a 41% increase in tenant demand in January compared to the same period in 2007. “We expect that strong tenant demand will remain a feature of the first quarter of 2008 and possibly longer if the next interest rate cute fails to boost confidence. Although Scottish property price growth remains positive some would-be-buyers have decided that, for now, they are content to rent.” The portal reports that property in Glasgow takes an average of 29 days to rent, with 14% of properties being let within a week.

Award-winning projects such as GH2O prove to be the best bet for property investors seeking to tap into the high demand for accommodation in the city, according to the International Property Investment Network (IPIN). Situated on the quiet banks of the River Clyde, this residential complex is a highly desirable address for trendy young professionals as it is conveniently positioned between the city centre, retail and leisure areas.

GH20 is part of the regeneration of Glasgow’s Clydebank area, which will include the creation of a new metropolitan environment consisting of residential, commercial, retail and leisure districts. Some of the projects already completed are: Radisson SAS Hotel, Argyle Street, Glasgow, Telford Drive, Edinburgh and Bewleys Hotel, Glasgow.

According to Gareth Milton, Head of Operations at IPIN, “This stunning addition to Glasgow’s skyline offers a choice of 15 modernistic apartment styles, and the project itself has been designed to ensure that 80% of these units enjoy direct views over the River Clyde. Following our extensive research and due diligence procedures, we believe GH2O offers a combination of great rental potential within a UK city experiencing continued economic growth.”

Fri, 7 Mar 2008 00:00:00 GMT
Owners of property in France reassured by analyst
An expert has talked down recent figures which revealed that the rate of growth in France's housing market fell last year.

According to the Royal Institute of Chartered Surveyors, the value property in France went up by just three per cent in 2007 - down on the figure recorded 12 months earlier.

This has prompted concerns of a possible downturn across Europe, although these have been dismissed by some analysts.

Georgina Caldwell, deputy editor of French Property News, insisted that the drop in house price inflation was a "normal state of affairs".

Speaking to the Independent, she said: "I would be hesitant to describe this as a downturn - this is a steadying of the market."

Ms Caldwell added that rate of growth in the French property market had been affected by numerous factors, such as recent improvements in the balance of supply and demand.

The country has been rated highly in recent polls including a survey by A Place in the Sun magazine.

Research by the magazine found that it was Britons' second favourite foreign property market for the second consecutive year.

Thu, 6 Mar 2008 00:00:00 GMT
Cape Verde sees economic growth
A global body has recorded a positive rate of growth in Cape Verde's economy, according to a media report.

MacauHub stated that the International Monetary Fund (IMF) considers the country's recent performance as "satisfactory".

A representative of the organisation stated that Cape Verde has met its fiscal targets and that the outlook for the future is favourable.

The verdict was revealed after an IMF delegation met with members of Cape Verde's finance and public administration ministry.

Earlier this year, the organisation predicted that the west African archipelago would see economic growth of 7.75 per cent.

This was said to largely driven by the development of its tourist sector, as well as investment in the country's public infrastructure.

The IMF's comments could help to encourage overseas investors to consider property in Cape Verde as a possible market in which to tie up their money.

In recent years, the islands have attracted numerous forms of investment from abroad, particularly in its real estate market.

Thu, 6 Mar 2008 00:00:00 GMT
A Strong Investment Climate in Egypt
Egypt’s government continues in its mission to encourage inward foreign investment through reforms to its investment policies, which are reducing bureaucracy and keeping the country’s recent economic growth firmly on track.

A recent report by the Institute of International Finance confirms that these procedures have led to an increase in net FDI (foreign direct investment) which has grown from 0.5 percent of GDP in 2004/05 to 8.2 percent in 2006/07.

The report discussed the country's financial policy, noting the major procedures implemented since 2004, especially the tax reforms of 2005, that implemented the law of a unified treasury account, established the large financers' centre and merged sales and income taxes.

Efforts to improve the legal and regulatory framework governing the investment climate were also highlighted by the report. It noted that Egypt had achieved a better rank in International Finance Corporation (IFC) and the World Bank's indicators of the ‘Easiness of Doing Business’ in 2008. Egypt has also been ranked the top reformer in the world in terms of improvements to the investment environment.

Buying Property in Egypt

One of the main benefits of investing in Egyptian property is the low purchasing cost: approximately 3% of the purchase price. In addition, property taxes remain very low and the absence of VAT, Capital Gains Tax, Stamp Duty and Inheritance Tax makes for a profitable investment arena.

Below is a quick summary of investment benefits:
- 0% Stamp Duty
- 0% Capital Gains Tax
- 0% Inheritance Tax (for British citizens living in the UK and if property is left to family members)
- No taxes for non-resident owners in Egypt. You are not liable for Inheritance, Income, Capital Gains or Corporation taxes in Egypt. As a UK resident, you are liable for all your worldwide assets and incomes. There are no restrictions on when you can resell your home.
- Government Real Estate Tax: 50GBP per annum.
- Title Deeds, Registration and Lawyers fee: approximately 3% to 4%.
- Low cost investment with high potential returns. Egypt is an emerging market and Sahl Hasheesh is in an underdeveloped area of the Red Sea Riviera.
- Property in the Hurghada area is sold 100% Freehold.
- Low purchase costs. Legal fees in general are not excessive. The Egyptian Government will make a charge on the purchase of your property of approximately 2.5%.
- A steadily growing tourism destination set to double its tourism figures in the next 10 years.
Investment opportunities

One area that is feeling the benefits of the country’s new acclaimed accessibility is the mammoth project of Sahl Hasheesh, touted by some experts as the most important construction project in Egypt since the Pyramids!

Indeed, Sahl Hasheesh is a resort community project of unprecedented scale. Situated in the Hurghada region, it will cover 32 million m2 and when completed it will assume the proportions and functions of seaside resort towns such as Cannes, with La Croisette on the Riviera Sahl Hasheesh is to become one of the most exclusive and architecturally inspired waterside addresses in the world, thanks to ambitious resort projects such as Serrenia, amongst others.

Serrenia delivers a unique living experience: luxury residential accommodation within a world class golf complex, including tennis and basketball courts; an ESPA branded spa; a heliport, a landing strip for private aircraft; and a 330-berth Camper & Nicholson marina and yacht club, catering for the world’s largest private yachts. In addition, this outstanding resort is home to a 7-star hotel and designer shops to rival Paris, Madrid & London. Bespoke properties here will set you back around £25 million, with comfortable apartments starting at £200,000.

The resort of Sahl Hasheesh is entered through a monumental Pharaonic gate, leading down the main avenue to the Red Sea. Lined with over 100,000 fully grown palm trees, its carefully planned walkways lead to the old town and heart of Sahl Hasheesh. This small city provides premium resort facilities where visitors will enjoy cinemas, arcades, piazzas, bars, restaurants, live entertainment, 300 shops and a casino, while benefiting from an essential community infrastructure; schools, sport facilities, hospitals and places of worship.

At the end of a 250m pier below the bay’s crystal waters, lies one of the greatest attractions of the development, The Sunken City. This is a mystical site consisting of ruins and antiques that will provide any visitor an experience that is truly out of this world.

Another area that cannot be ignored when looking at Egypt’s economic and property investment potential is Cairo. Wikipedia states that Cairo is in every respect the centre of Egypt, as it has been almost since it’s founding in 969 AD and one quarter of all Egyptians live there. The majority of the nation's commerce is generated from or passes through Cairo city. The great majority of publishing houses and media companies, as well as nearly all film studios are located there, as are half of the nation's hospital beds and universities. This activity has fueled rapid construction in the city - one building in five is less than 15 years old. This astonishing growth until recently surged well ahead of city services. Homes, roads, electricity, telephone and sewer services were all suddenly in short supply and analysts are trying to grasp the magnitude of the change, coining terms like "hyper-urbanization."

In addition to being one of the world's largest urban areas, Cairo offers many sites to see as well as being the administrative capital of Egypt. Close by is almost every Egyptian Pyramid, including the Great Pyramids of Giza on the very edge of the city. Ancient temples, tombs, Christian churches, magnificent Muslim monuments, and of course, the Egyptian Antiquities Museum are all either within or nearby the city. Cairo provides great culture, including art galleries and music halls such as the Cairo Opera House - as well it should, being one of the largest cities in the world. It also provides some of the grandest accommodation and restaurants in the world.

One company that continues to provide high quality accommodation in Cairo is DAMAC, the largest private real estate developers in the Middle East. In a recent article Egypt’s Business Today magazine, Ziad El-Chaar, the general manager of Damac Properties was quoted as saying that “In Egypt, upper development is an established field, Egypt’s economy is growing and international demand is growing — Egyptian expatriates and foreigners from around the world are demanding a house in Egypt.”

Likewise, “We see a lot of real demand,” says El-Chaar, “we don’t see this as a bubble. The economy is growing, the population is growing, and the international demand is growing. There is definitely a boom in demand in the Gulf from the Egyptian expats who live there.”

Conclusion

Despite the huge increase in Egypt’s property prices, one cannot deny that they are still far lower than their equivalents in other countries across the region. The fact of the matter is that demand, economic growth, discretionary income and population increases will keep prices rising. Along with the real estate boom, there has been a more than equal growth in the banking industry, with developments in loan and mortgage facilities.

From a strategic point of view, Egypt seems the perfect place to invest. With economic growth of 7% per annum, along with the largest population in the Middle East, the country holds unlimited potential. For real estate investors, relatively cheap property prices, the natural beauty of Egypt’s coastline, continued economic growth and a demand that far exceeds supply, together make Egypt an enticing opportunity.

Thu, 6 Mar 2008 00:00:00 GMT
Russian investors favour Cyprus
A growing number of property investors from Russia are choosing to buy homes in Cyprus, experts have revealed.

The Royal Institute of Chartered Surveyors (Rics) stated that interest among second home buyers from abroad was encouraging growth in the country's housing market.

According to the organisation, much of this interest has come from Russian property investors.

Rics said that consumers in the Eurasian country had not been as badly affected by the global credit crunch as people in the west of Europe.

As a result, they are becoming increasingly commonplace in the overseas property sector.

The organisation commented: "Russian and other purchasers are said to be becoming more prevalent."

Rics added that the level of interest outside the "traditional" sources of demand was acting as a "key driver" of growth in the Cyprus property market.

The Mediterranean island recently became a full member of the single European currency.

Wed, 5 Mar 2008 00:00:00 GMT
Spain set to see additional interest from investors
Spain is likely to attract renewed interest from overseas property buyers, an expert has predicted.

Nicola Christie of NuBricks.com stated that major Spanish cities and coastal resorts have traditionally been the focus of interest from foreign buyers.

However, she said the incremental roll-out of new high-speed rail links across the country could help change investors' preferences.

A service between Madrid and Barcelona has just been launched, which means that towns along the route will now be much more easily accessible.

Therefore, it is possible that property buyers could start considering parts of the country that have, until now, been "effectively out of bounds".

Ms Christie commented: "News of yet more links to come over the next four years should ensure that more and more of the Spanish countryside is opened up."

According to Holiday-Rentals, 31 per cent of British-owned holiday homes in Europe are located in Spain.

Wed, 5 Mar 2008 00:00:00 GMT
New Tax Exemption Law Boosts Panamanian Investment Appeal
Panama’s property investment market has just scored another point in its favour: the new tax exemption law, coupled with many other existing tax benefits, make Panama an increasingly popular real estate investment location.

The finest piece of information on property investment in Panama comes from the country's housing Minister, Balbina Herrera, in his announcement that the country will be extending its 20 year property tax exemption for foreign investors. Those who purchase property developments with building permits issued prior to 31st December 2009 will be exempt from paying any taxes on property transactions carried out in Panama until 2030.

According to Jose Boyd, president of the Panamanian Real Estate Association, (Asociación de Corredores de Bienes Raíces - ACOBIR), "What this does for the industry is fantastic. This does not just apply to new buildings and covers existing colonial style structures as well and will appeal to lifestyle, retiree and the pure investment buyer.

"This puts Panama in a privileged position in the Central American real estate community as our neighbours are having a hard time in the current economic climate and this is creative and shows the world that we are a happening and serious location for international property investment."

Propertyshowrooms.com analyst, Sara Romera, concludes: “Panama City centre property performs immaculately in the investment scale - property appreciates well as in other quality negatively geared investments yet cash flow income returns are apparent.”

“The country boasts increasing visitor numbers, 85% of which remain in the city centre during their visit. The strong influence of the Canal is apparent, accentuating the city's status as a commercial hub, offering a gateway between the Atlantic and Pacific Oceans.”

Wed, 5 Mar 2008 00:00:00 GMT
Time to Invest in the US
The Euro reached record exchange rate levels this week, rising as high as 1.5144 EUR against the US dollar: good news for buy-to-let investors seeking more affordable property in the USA with which to tap into a growing demand from many US citizens unable to enter the property ladder. The country is also witnessing a colossal increase in European tourists lured to the USA by the attractive exchange rate.

Tighter credit conditions and negative equity are forcing many US citizens out of the housing market, many of whom are leaving homes behind them that have become too expensive to pay for. Although this is a dramatic situation for many, it poses an incredibly good scenario for anyone wishing to make positive returns through buy-to-let investment property. As access to the property ladder becomes a back-breaking affair, many would-be buyers are opting for rental property instead. "Rent increases will exceed historical averages over the next three to five years," said Orlando-based apartment builder Steve Patterson, CEO of Zom Inc.

‘As credit difficulties make it harder for people with less-than-perfect credit to obtain home loans, demand for rental units will increase’, Patterson said.

Perceptive property investors are already making their way to the “New World”. Recent figures produced by the National Association of Realtors have shown that foreign property purchases in the country are at an all-time high. The British are the main participants in this market, purchasing 12% of homes bought by non-US nationals in 2007, only exceeded by the Mexicans who purchased 13% of properties during this year.

Homes sold to the British rocket in Florida. Here, UK citizens make up 33% of international home buyers, only to be followed by the Germans, Canadians and Venezuelans with 7% each. The main reason for most of these property purchases was investment with a view to renting out the property or providing a holiday home to both family and friends.

Buy-to-let investors can rest assured in the knowledge that the US, and particularly Florida, attracts tourists for many reasons. Theme parks and beaches aside, the sunny state saw visits from abroad jump about 7% over 2006 according to Nikki Grossman, CEO of the Greater Fort Lauderdale Convention and Visitors Bureau. And the reason? The weakness of the dollar against the euro and British pound. This is reinforced by the fact that 48% of purchases at Sawgrass Mills Mall (just outside Fort Lauderdale) were made with non-US credit cards, states Ms. Grossman. “Brits came to do their Christmas shopping. They bought suitcases, and filled them”, she explains. “To them, it was like a free vacation.”

With the recently approved Open Skies agreement between USA and the EU, prospects for investment property in Florida are only likely to edge upwards. Zoom Airlines is advertising return flights from London Gatwick to Fort Lauderdale in Florida for as little as £299.

So whether it is the sunny Florida or America’s Big Apple that rocks your boat, low US property prices, coupled with healthy rental demand, can generate positive income returns while you wait for the property to largely appreciate in value – something that is set to happen over time, once the credit crunch is over and prices ‘back home’ return to their normal levels.

Please see the charts below:

Source: The NATIONAL ASSOCIATION OF REALTORS® Profile of International Home Buying Activity in Florida. Used with permission. Reprinting or retransmission of this data is prohibited without written permission.

Wed, 5 Mar 2008 00:00:00 GMT
Investors in Egypt to be boosted by tourism
Egypt's popularity among holidaymakers from the UK could potentially boost its investment potential.

According to the Association of British Travel Agents, the north African country is likely to attract a significant number of UK tourists in 2008.

As a result, people who let out property in hotspots such as Sharm el-Sheikh could find their residences are subject to strong demand this year.

This could have the positive consequence of boosting its value and allowing investors to collect higher rental returns.

Speaking to BBC News, spokesperson Frances Tuke said the growing appeal of Egypt is a reflection of changing habits in consumer's destination choices.

She commented: "People are becoming very demanding in their holiday choices.

"They want to be a bit more adventurous."

Egypt was recently recommended to foreign property buyers by the BuyAssociation website, which said it was one of the most popular winter sun destinations among Britons.

Tue, 4 Mar 2008 00:00:00 GMT