Typically early entry into emerging markets offers the highest return on investment but, in many circumstances, this is also associated with different levels of risk.
As Lincom Real Estate deals with property that is primarily an investment vehicle and its only purpose should be to generate substantial returns for the investor.
Lincom Real Estate advisors can help with all aspects of your investment and recommend our professional financial partners to work with investors on strategy calculations. However we insist that every investor looks at an investment in detail and seeks advice where needed to ensure it is completely suited to their individual investor requirements. If a market is expected to offer continued growth, it is important that as an investor you understand what the "market drivers" are for this growth. Some common "Market Drivers"
This is always a major factor with any property investment. The location of an investment is directly linked to the return on investment an investor can expect from both capital growth and rental yields. We recommend that investors look at current property and rental prices in the direct and surrounding areas of any proposed investment to gain first hand knowledge of pricing and, where possible, they should personally visit the area.
A property purchase is only an investment if it is purchased at the correct price, allowing for its value to appreciate and/or generate solid rental returns in proportion to its cost.
The economic condition of the country should be taken into account because a country or region that relies more heavily on tourism will be prepared to invest more into the infrastructure of the area to promote construction and tourism. The down side may be that too much planning consent may be allowed.
Needless to say that in the investment is primarily for summer holiday makers then the climate needs to be warm and sunny.If the investment is primarily for skiers then good prolonged snow fall is needed. Do not forget investments for businesses. Currently there are some emerging areas which have significant business attraction. E.g. Businesses looking to invest in an area by relocating production facilities due to lower labour costs etc. In these areas buy and hold strategies may be very rewarding.
To be attractive the area must be easy to reach! Look out for new low cost airline routes, nearby airports, good road infrastructure.
An excellent sign of an investment property hotspot is when there are considerable infrastructural improvements being made to an area. Generally this includes local attractions, services and amenities, but also, and often most importantly, additional airports, ports and roads, as well as secure signs of growth and firm commitment by a local government to help improve an area.
These are often the most obvious "market drivers". Many locations base their bid to increase tourism and property demand on the fact that the area enjoys excellent weather conditions and can offer stunning beaches, tropical views or are positioned next to a mountain ranges offering quality skiing conditions. These factors are obviously very important, but it is essential that other "market drivers" are also considered in association with these as follow:
Tourism is the primary factor that enables many emerging property investment locations to create a successful property market. With increasing low cost flight destinations and the world becoming effectively smaller, the door is open to many relatively unknown destinations that are beginning to offer new and exciting holiday destinations to tourists around the world. Today's tourist is after all willing to try new places after experiencing the same traditional locations for too many years.
With terrorism around the world on the increase and many political, religious and legal implications to consider it is essential that the stability of an investment location is considered prior to any investment. Political stability of a location can act as a very strong investment market driver.
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