Looking to international property markets to bolster your portfolio in 2016
The property market continues to have a positive outlook, but this does not have to mean staying within the UK for keen investors. Many global cities are performing much better, which could see you boost your portfolio.
Why move away from the UK?
For the last few years, London has been one of Europe’s best cities for investing in property, but a recent report shows that the city has now slipped to 15th position. The report from PwC and the Urban Land Institute known as Emerging Trends in Real Estate puts Berlin and Hamburg at the top of the list, with London moving down due to increases in property prices and reduced yields.
Where should you invest?
If you want to grow your property portfolio and move away from the UK, which cities should you consider?
For those who do not want to go too far, the Algarve in Portugal offers plenty of opportunities as the market has yet to fully recover from the recession, the Euro remains weak, and as a key tourist market, the rental market has good returns.
Medellin is a region that not many UK property investors have considered or even heard of, but with beneficial exchange rates on the peso, you can pick up a good bargain right now. In addition, as one of the safer areas of the country, it is a popular tourist destination.
The Middle East remains a positive place for investors, even though some of the regional markets have cooled slightly over recent months. Rental yields in the major cities are extremely attractive in comparison to other global hubs, with Dubai averaging around 7 per cent.
Ambergris Caye, Belize
This is a buoyant area to invest in if you are considering a Caribbean market to add to your portfolio. It is a beautiful tourist region, but it has not been overdeveloped or commercialised, so it still provides a local feel. It also boasts the world’s second-biggest barrier reef.
Making global investments
Even for experienced investors, moving into a new market can be risky if you do not know the area well and cannot easily check it out for yourself. It is vital that you conduct the appropriate research and due diligence before making any investments, and more investors are partnering with local agencies to acquire experience and insight into new areas. This enables them to make significant investments with more confidence and gain a better understanding of the market.
Building a solid, successful portfolio locally in the UK can be the perfect way to build up your skills and confidence before taking the plunge with an overseas commitment. Becoming accustomed to delegating work and spreading your time across various projects within the UK is great practice for operating overseas. Finding a local expert is essential whether you are investing in Britain or abroad. A dedicated property management firm such as Hamilton King can make the day to day administration of multiple properties much more manageable.
A successful move into the global property market could take your investment portfolio to another level and enhance your position in the industry. However, as with any investment, this is not without its risks, so it is vital that you choose the right market and understand exactly what the commitment involves.