Investing Trends

Discerning investors have long been aware of the lucrative gains to be made from purchasing property abroad. A prime property in an excellent location, purchased at the best price, can offer the investor a secure return, whether the property is for personal or commercial use or is to be enjoyed solely for its high rental returns. Purchasing property abroad has never been so popular, with significant numbers of people favouring investing abroad over the traditional pension scheme. According to recent figures, some 254,000 Britons now own homes overseas. Indeed, the returns to be enjoyed from investing even nominal amounts in overseas bricks and mortar can be substantial, leaving more traditional savings options quite literally in the shade.

It goes without saying that the potential investor must be well informed, with trends moving quickly. The press and media are bursting with advice on the latest emerging hotspot and fad buying can be a costly mistake. Whether you are looking to cash in on brisk capital gains, aiming to profit from rising rental yields and capital appreciation, or looking for a second home, it makes sense to examine all the options and not expect the latest 'Top Ten' or stylish television presenter to provide clear and objective advice. Strong traditional markets such as Spain and France are quietly but confidently being challenged by more lucrative emerging markets, where potential for growth is higher, the markets nowhere yet near saturation point. Cheap air travel and flexible financing can often make a potential property hotspot appear (and be) too good to be true.

Each year, it seems as though a pin is taken out by the top property PR firms and stuck randomly into a huge world map. The place it marks then designates that year's property hotspot, such is the seemingly imprecise nature of overseas property trends. Purchasers duly flock to the newly favoured country, saturate it and leave the market stagnant, with no room for growth. These purchasers are left berating their haste, realising too late that the buzz around a new market often fails to take into account certain fundamentals, crucial for maximising capital growth. Is there a secure local infrastructure? Is the market tourism-driven or tourism-hopeful? Would you want to live there? Nonetheless, it is reassuring to know that the savvy investor can still emerge victorious by making sensible investment decisions depending on clear and well-researched criteria. While the madness of trend investment is here to stay, it remains vital to pay attention to the quietly emerging markets. An important factor of successful property investment is to get to a hotspot before it becomes a hotspot, to identify a dark horse and place your bet on it.

Morocco is one such dark horse. Only three and a half hours flight time away from the UK, Morocco is currently one of the world's top emerging markets, offering investors a real value for money experience. An exotic atmosphere, combined with excellent amenities and progressive governmental policies has made the country a firm favourite with tourists, with recent reports confirming that flight bookings to Marrakech alone rose last summer by 295% on the previous year. With homeowners enjoying capital gains of 20% year on year, Morocco is the perfect market for those wanting to cast their net further afield.

If camels and bazaars are not your thing, you could do far worse than take a look at north Cyprus: the beautiful climate, stunning natural beauty and excellent amenities have attracted increasing numbers of curious tourists over the past few years, many of them returning year on year to enjoy the uniquely Turkish Cypriot hospitality. Property construction and purchasing is brisk and yet 90% of the country remains untouched. Savvy political thinking plans on keeping it this way. With prices on average a third of those in the south of the island, this last piece of untouched Mediterranean is a well-kept investment secret indeed.