Things are really starting to move again in the world of overseas property investment. At present most private residential investors, and a large proportion of commercial entities as well are focusing their investments on distressed and/or heavily discounted opportunities, which exist predominantly in established markets.
In fact before this week even property price growth in emerging markets was being portrayed as a bad thing, because of fears over the formation of the next bubble -- if only we had all been so cautious between 2004 and 2007.
This week I came across the first positive reports on emerging market property investment:
Firstly a report on the Thomson Reuters survey of investors, which found that 85% of investors are expecting Asian property to yield over 10% next year, with only 13% expecting European and US markets to match such growth.
Then a report in Moneyweek, which said apart from a few "bright spots" in Europe, Australia, and Canada, it is only selected emerging markets in Asia, and the likes of Brazil which offer any real chance of major profits from property investments.
That said: buy to let is regaining its former glory. The likes of Florida, Orlando, Tampa etc and other emerging economic regions like Detroit seem to be presenting an absolutely fool proof buy to let investment opportunity. Whereas before you could only find guaranteed yields of 10% in emerging property markets like Egypt, now there are many heavily discounted properties in the US and other established markets with similar guaranteed yields.
It is hard to decide which is the best to go for: do you bank on tourism rising to previously seen levels earlier than the local and national economy recovers to sufficient levels for employment to start rising.
However, unemployment is often the last thing to turnaround after a recession, especially one as severe as this one, and so tourism is likely to recover faster in the near-term. That means choosing areas of rapid tourism growth for your investment, which in my opinion highlights Hurghada in Egypt, the north east of Brazil; Natal and of course Orlando and Tampa in Florida.
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