Get advice when buying in emerging markets, says expert
Property investors considering buying in emerging markets should first seek professional advice, Property Frontiers has said.
The property company said that buying a house, even in an established market, is a complicated process and urged investors to always ask the advice of experts before they buy.
Buying property overseas is becoming increasingly popular among UK investors, with the number of purchases in foreign countries up by 27 per cent in 2007 from the previous year, according to the Association of International Property Professionals.
Michael Johns, chief executive officer of the Right Move Abroad, recently told Nubricks.com that as British buyers increasingly turn to buy-to-let properties because of falling yields in the traditional market, destinations such as Margarita Island "offer an emerging tourist destination with excellent rental yields due to the urgent requirement for quality accommodation to cater for the surging tourist visitor numbers".
According to the website, investors can find property up to 50 per cent cheaper on Isla Margarita than on other Caribbean islands.
"Attitudes have certainly shifted regarding overseas property purchases, with more and more clients conducting research themselves, as well as instructing for professional advice.
"Here at Emerging Earth, we would advise all clients to be fully aware of what they are looking for, what they expect, and what the potential risks are. If approached correctly, overseas property can still offer fantastic yields and excellent capital gains, with the benefit of the investment being in a beautiful location. This is even more telling with respect to the current condition of UK markets," Matt Legg, Emerging Earth.
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