Risk justifies the price: investing in overseas property

08.09.2010 06:32
Foreign real estate offers a wide variety of options to invest. For cautious investors - the stable markets of Western Europe with the progressive growth of the value of objects. Those who are willing to risk or do not have a lot of money, you may want to play there, where in times of crisis there was the largest drop in prices.

Stable Harbor
For a stable real estate markets in the first place are Western European countries, such as Austria and France. They show a gradual increase in the value of objects. The specialists advised to look closely to the capital real estate - growth here regardless of the country tend to be higher, but the possibility renting the apartments does not depend on the season.

Related article: Resale homes in the U.S. in April rose more than expectations

Wishing to invest in stable markets experts advise to pay attention to central London, where prices for the year is almost back to pre-crisis level, but due to the devaluation of the pound sterling purchase can be very profitable now. "Despite the fact that the average price reached a crisis level, the weakness of the pound makes this purchase very attractive to foreign buyers, whose holdings are stored in other, more stable currencies," - the director of the department of residential real estate company Chesterton Ekaterina Thain.

Among the interesting trends of experts have called Israel, primarily due to the fact that the price increase is not stopped even in a crisis. "Some skeptics argue that Israel - another real estate bubble. But it is not. The growth in property prices is 1% per month, and there is a well-founded assumptions. First, the criteria for granting mortgage loans in Israel rather rigid, thus avoiding the borrower defaults. Secondly, in Israel, a record low number of new buildings and new building permits are issued for a long time "- says CEO of international real estate agency Gordon Rock Stanislav Singel.

Rose in price in the real estate crisis in Switzerland. Swiss cantons statutory authority to restrict the number of foreigners who can buy property in this country that supports the demand for housing at a high level. "Housing prices in Switzerland have been steadily growing by an average of 1-3% per year, growth was even in a crisis. Demand for property is formed by wealthy Europeans, since the tax regime in the country is more favorable than in other European countries," - says Ekaterina Thain.

Latvia, Dubai
However, for the acquisition of high-quality facility at a stable real estate market have a budget of at least? 200-250 thousand, if the investor has a lower amount, he should look at the markets, which are significantly affected by the crisis, such as the markets of Latvia, Thailand, Dubai, Greece . However, in this case would still have to be patient - expect to benefit from the purchase of an object is only in the long term.

Latvia during the crisis was one of the foremost part of the fall in property prices. According to various sources, it is in this country fell by 60-70%. But now, according to experts, the market has stabilized and will grow by an average of 5% per year. Thus, according to the company IntermarkSavills, in the first quarter of 2010 Latvia became a world leader in house inflation -10.7%. This breakthrough was due to improvement in the overall macroeconomic situation in the country: in the first quarter, Latvia's GDP has shown growth in the seasonally adjusted 0.3% compared to the end of 2009. In addition, for the sake of drawing attention to the Latvian real estate were made to amend the law on emigration. Now, according to its current version, foreign investors will get a five-year residence permit in case of purchase after July 1, 2010 Housing in the amount of 100 thousand lats (? 141 thousand) in Riga and at least 50 thousand lats (? 70.5 thousand) in other cities. "If we're talking about benefits, you should consider not only the investment attractiveness. Everyone who is focused on obtaining residence permits, we recommend you pay attention to Latvia. From 1 July 2010 there is a law by which people (and Russia's too), has acquired the property the sum? 140 thousand, granted a residence permit. A Latvia - EU and Schengen. In addition, the Latvian property prices have subsided quite significantly - some of the objects dropped by 75%, but now there is revival of the market and there is a positive trend. All This makes Latvia promising investment destination. Room facilities in different parts of the country varies widely, but if you focus on obtaining residence permits, the amount of investment should be not less? 140 thousand, and you can attract a mortgage loan, "- says CEO Miel DPM "Natalia Zavalishina.

Now the average cost of a meter square in Riga, is estimated at? 500-600. Accordingly, having a residence permit required for the budget, we can look flat in a new high-end or a separate house. For example, over? 140 thousand in Riga you can buy a two-level two-bedroom apartment (178 square meters. M), modern residential complex. A studio apartment a small area (22 square meters. M) with no furniture, but after eurorepair - for? 26 thousand

"The real estate market in Latvia is on the rise. Often, however, buyers and sellers differ in their expectations. Customers expect to buy an object cheaply, as sellers want to sell as dearly as possible and pushing the fact that the crisis is behind us and prices are restored," - said Stanislav Singel. As we told the company Gordon Rock, now began to appear suggestions when buying an object in a residential complex to the buyer provided free legal services for a residence permit.

Ekaterina Thain advised to pay attention to Dubai. In a crisis there the real estate prices dropped by almost half. "The emirate is a financial center of the Arab world, which makes it advisable to buy property for rental. Income from the lease may be up to 10-15% per annum, whereas the European average - 5.6%. It is only necessary to consider the project in great detail as well as the reputation of the builder and sources of funding and to invest only in finished projects, "- makes recommendations Ekaterina Thain. According to Global Property Guide, the average price per square meter in the UAE amounted to $ 3,110 in the first quarter of 2010 - gain of 1,3% on the previous year, and this is the first increase in value of more than a year.

In general, the Dubai property market recovers from the crisis relatively slowly. According to experts, its revival inhibited mainly an excess of supply. The cost of small apartments (30-40 square meters. M) begins with a? 80 thousand With a budget of? 120 thousand can expect a more attractive target. For example, over? 130 thousand are offered two-room furnished apartment in a residential complex.

Thailand, Saudi Arabia, Greece

Also worth a closer look at the Asian resort areas, such as Thailand. "Russian consumers are not too heavily invested in real estate in the region due to the large distances, and also because of the property should be looked after. Now there is an offer to purchase housing under the management of the hotel operator, which itself acts as the management company and rents housing to rent. For example , Six Senses, which sells villas in Thailand in the project Soneva (cost of $ 2.5 million), offers a yield of 6,5-8% per annum (excluding the increase in the value of the object), "- says Ekaterina Thain.

The most popular among Russians Thai resort - Pattaya and Phuket. Because of the crisis, which remained the country, many developers are working in these areas are ready for a significant discount - it's about as projects under construction or already completed. Generally, real estate in Thailand is available now, priced vehicle, such as fully furnished studio in the central part of Pattaya - a ? 15 thousand, "the mass segment offers in Thailand is in the range from 700 thousand to 1.1 million rubles. - For the money You can buy a 40-meter furnished studio. Now there are proposals, and from 400 thousand rubles. - these options a little, but they are there. However, some developers have started to offer assured return scheme, though the term lease there will be shorter than five to seven years, the standard for Europe - three years at 7% per annum. More sophisticated versions can be found in Pattaya: if the apartment complex claimed three stars, then we can say that they comply with the European three star "- says Stanislav Singel.

According to Global Property Guide, rents in Bangkok are on average 8% per annum, but some projects can reach 10% or more. With a budget? "80 thousand possible to look for a stand-alone object. For example, for the same amount proposed 150-meter house with private garden. The house has three bedrooms, three bathrooms. For? 110 thousand sold two-storey house with garden, communal pool and tennis court.

In Greece, a significant fall in property prices due to the economic crisis in the country has not yet happened. As described in the company of Gordon Rock, at first glance, the correction in property prices there, but the sellers are ready for a serious buyer for a discount of 5-10% originally stated value. "Experts have expressed two opinions on the situation in Greece. The first - there will be no worse. Second - price correction in the property market is expected in October. If we talk about the results of the summer season, the overall market remained stable. However, banks that issue mortgage loans or declare it no longer lend to real estate purchase. In this regard, the market loses Greece Cyprus "- says Stanislav Singel. According to the most pessimistic forecasts, the real estate market in Greece will show a fall in prices during the year and a half at least.

Very popular among Russians Greek island of Crete and Rhodes. Minimum cost per square meter is there? 1200. With this budget, you can count on furnished apartments with sea views (but not near the sea), for example, in Crete. Proposals for the sale of apartments start somewhere with? 40 thousand, for example, one-room apartment (35 square meters. M) in the tourist area of Kassandra (Halkidiki) can be purchased for? 37 thousand? 80 thousand asking for an apartment (75 square meters. M , two bedrooms, living room with fireplace) overlooking the sea (600 m to the coast) and 300 meters from the city center. Another Cretan offer - one-bedroom apartment with one bathroom for? 110 thousand, but at the same apartment complex located on the first line next to the sandy beach. Increasing the budget for buying two, one can consider the option freestanding structure. Thus, "230 thousand requested for a two-house of stone (100 square meters. M) near Lake Kournas with pool and garden. In eastern Crete, you can keep an eye townhouse, price - from? 150 thousand

Investors are more willing to risk, may need to look at the real estate market of Saudi Arabia. In the near future, there are first allowed foreigners to buy real estate - in four cities. King Abdullah Economic City (KAEC, named after the head of state) - one of four cities, which plans to build a government of Saudi Arabia to diversify its economy, and the first one, where non-residents be allowed to freely own property. The project is implemented Emaar Economic City - Dubai's largest property developer with close ties to the Saudi government. Now the first phase of the project is nearing completion, about 40 families already living in KAEC. Emaar Economic City is planning this year to convey to buyers even 470 buildings. The second stage in which they want to build housing for 40 thousand owners, is scheduled to finish in 2014. For example, the object Hawadi plan will include 22 thousand housing units (apartments, townhouses), construction will begin with 750 units, whose prices will range from 400 thousand ($ 107 thousand) up to 1.3 million riyals ($ 350 thousand ).

Julia Pogorelov Kommersant
Content tags: Overseas property
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