What are the best places to invest in real estate nowadays? The most important in real estate investing is selecting the right location of investment property. There is a famous quote that property selection is all about “Location, Location and Location”. It is more than accurate in this case. When decided on what your investment strategy is with regard to Risk and Reward it is then very much down to location: high risk with possibilities of high returns, medium risk with a more secure but slightly lower return, low risk but much safer and acceptable return.
There are differences in geographical features, weather, populations and attitudes to many social aspects of living such as religion, work ethic and family structures on the planet we call Earth. The items that influence whether a particular location features high or low on a property investment “Hot List” are these:
Supply and Demand
Trying to find best places to invest in real estate requires to do a little research, especially look at four ideas:
What are the fundamentals that are going to drive growth of capital?
How strong are the resale/rental markets?
What is the level of risk in a country, and is it over or under-valued?
Does the finance available, property prices, buying costs and rental yields make it financially viable?
To recommend a particular location and development for best places to invest in real estate requires comprehensive process of “Due Diligence” been undertaken to ensure that the property that you invest in has the greatest opportunity for capital gain and rental yield. Current “Hot” Locations with low risk and acceptable returns would be:
United Kingdom – Major Towns, Cities and Costal areas
Spain – Costa Brava, Costa de Luz, Murcia Area
Portugal – Major Cities, South Coast
Turkey – Major Cities and Sea Coasts
USA – Florida long term residential lets (solid investment – in spite of the hurricanes); Utah (lots of retirees move there); North Carolina (very attractive for retirees as well), California (high prices, lot of new houses built lately).
France – Leasebacks in Ski Areas, Paris and South Coast
These are all suitable for holiday and retirement purchases rather than pure investments.
Medium Risk investments with good potential in 2013 and 2014 are:
Dubai – Commercial areas, International City
Morocco – Cities and Mediterranean coast
Egypt – Red Sea resorts
Bulgaria – Ski areas and Sophia
Philippines – big cities areas
Any Low Risk location above – where you can buy below the current market valuation, obtain a guaranteed rental period or include a substantial financial incentive.
What are best places to invest in real estate with higher risk which may “fly or dive”?
These are all locations where there is unacceptable risk. This could be areas where you can’t see a viable rental demand and capital growth has been purely down to investors being influenced by speculative hype. Some locations can reach an unhealthy price level where a correction takes place as has been the case in much of the UK in the past few years. You should also have concerns about the financial, legal or political stability of a given Country. This includes, for instance, beach locations with small seasons and many emerging markets. Once these locations obtain a higher rating in your due diligence research, you may move them into your medium risk category. This area is only suitable for the very brave who can afford an occasional loss situation. Before making any investment you ought to carry out your own investigation to ensure you’ll find really best places to invest in real estate suitable for your particular needs.
- best places to invest in real estate