The Top 10 Countries to Buy Property in 2008

Where was the hottest spot to buy property in 2008? As 2008 has just ended, that makes us wonder where the year has taken the property investing world. There have been a great number of ups and downs and 2008 has been financially challenging for many countries. So where have the Brits been buying when buying abroad? Is it worth it to invest in countries that are showing economic hardship?

Could this be an opportunity to take advantage of and get a good market deal? So many questions arise when you begin to talk of such topics. Europe has some great countries for investing and if you’re looking to broaden your portfolio with some new properties, here are 10 countries to consider:

These are a great pick for the top 10 countries to buy property in 2008. It’s not too late to invest your money in a smart choice that will bring in profits for 2009 and the years to come.

Investing in Property in 2009

Property investors may be wondering where 2009 will take them. Are you ready for the New Year? Do you know why property is still a good investment both at home and abroad for 2009? There are many opportunities awaiting the savvy investor who will stick it out in the New Year.

Here are some reasons to invest in ’09:

Here are the house price predictions for 2009 which show you why property investing is still a good market to pursue:

Property and housing prices are predicted and expected to fall even further with the New Year. For those who have enjoyed the dropping prices in ’08, you have even more to look forward to in ’09. Experts believe that prices won’t yet re-stabilize themselves with the coming year and that in fact, they may continue to drop even more.

This makes 2009 a great year for buyers and investors. The economy is showing us this will be the case. Britain is entering its steepest recession since the early 80’s and shows no signs of pulling out of it right away. If it continues, it can be the worst recession since the 30’s. Unemployment has reached an all-time high with over 1 million jobless and Britain isn’t alone in this recession.

All over the globe finances are suffering and this makes the prices in the housing and property market low. This is an excellent time to buy in investment properties while the house market continues to fall.

The problem with housing in the UK, as well as other countries, was not a shortage of housing but instead a shortage of affordable housing. You can look around at newly built, empty housing developments and partially built houses that have halted in production to see that there is no shortage of houses to choose from. The problem is that no one could afford to buy them!

Now many of these newly built or developed properties are standing vacant waiting for someone to snatch them up and turn them around for a profit and that someone could be you in the New Year. 

The state of the market

As 2008 draws to a close, we look back on the housing market and the economy and many of us might be thinking, “Wow, what happened?” 2008 was a very eventful year indeed. It was a year in which the global banking system fell and problems that began as a US economical issue became or worldwide, international crisis.

The financial problems split from the banking sector to virtually all economic sectors and then across the globe. The UK began seeing problems in early 2008 with signs that things would only get worse. For property investors, it was hard to judge if this was just another slump or the beginning of a devastating recession that could easily lead to a depression.

By April, most UK property investors knew the smart move was to steer clear of new property investments in the UK and many began to look abroad to strengthen their portfolios. Property in the UK went from bad to worse with many homes and developments left unfinished, sitting as a constant reminder of the condition of the market.

The US didn’t fare much better with homes being foreclosed on left and right and people left homeless or unable to purchase new homes. Many were forced to rent and many for sale homes stood vacant and market prices dropped more and more and still no one was able to buy.

Most were denied loans as banks had to scrutinize their deals and loans and those who may have been eligible for a loan became suspicious and untrusting of the banks and financial institutions. The market in the UK continued to drop throughout 2008 and many predictions think it will reach the bottom in ’09. While it’s uncertain how much longer it will last, one thing remains true: there isn’t much further to go to reach the bottom.

What has happened to housing prices in the US and the UK over the past year? It’s hard to sum it all up in one line since these are ever-changing markets. With the economies of both countries facing troubles, it’s easy to say the housing markets have been unstable at best.

Savvy investors do not have to let this be their downfall. While most are cautious about getting into the US or UK markets too soon, there is a wealth of opportunity in other countries. Many investors have used 2008 as an opportunity to create a global portfolio.

I’ve had a lot of emails from people asking about money matters in general so I thought I would show you some of the sites I visit for money advice and tips. Use them to your advantage. If you want to get ahead, it pays to use every opportunity you are given.

These ten websites can help you with your money in many ways from saving to investing and even smart spending and more. If you want to be a smart consumer, a savvy investor or just to stop worrying about living paycheck to paycheck, you can greatly benefit from these website resources.

If you’re thinking about buying overseas or investing in the overseas property market, this could be a great time to get involved if you are a cash buyer. In fact, right now having cash in the bank can greatly benefit you if you are thinking about buying overseas.

 

Why it that cash can be so beneficial at this time and what counties can you hope to find the best deals in right now if you have cash to buy and are not borrowing from the bank?

Credit crunch

 

It has been a gloomy 2008 on the economic front and the property markets have seen the effects of a dropping market in both the US and the UK. Many people are worried over investments that have dropped due to the stock market losses or homes that are being foreclosed upon.

 

While it’s an unfortunate situation for many individuals and families, it can open the doors of opportunity to many property market investors. So what is one of the best ways to make a real profit in the current market? If you have cash, you can buy overseas for an excellent bargain.

Buying with cash

 

Often you can find a property for a fraction of the price is the seller does not have to worry about financing or loan payments. When you can pay cash outright for it, it’s yours for a lot less. You can then turn around and resell or let that same property for a great turnover profit. This is a great opportunity for someone in rental property as many people who have lost their homes or cannot afford to buy will be looking for rental properties.

 

Now has never been a better time to buy as long as you have cash. How can you make it work for you?

 

·         First, determine how much cash you have to invest

·         Next, think about where you want to invest

·         Third, do some research into the market of that area

·         Look at actual homes or real estate that meets your criteria

·         Negotiate a deal with the sellers

·         Buy your property with cash and reap the benefits!

 

For example, you can now buy flats in Los Angeles, California for $280,000 (£170,000) that would have cost $450,000 a year ago. Many big cities in the US and the UK have excellent homes for the taking if you have the cash. Cash really makes all the difference and bumps you up in line when it comes to who gets access to buying these homes. No one wants to have to risk the loan process with these trying economic times so cash is true gold in the property world.

 

But the US isn’t the only place to find great cash deals on properties. Spain is also reported to have great rates and bargains for people who are paying in cash. There are other areas of the world which are considered “high risk” for banks to loan to. In these areas, you can make a cash purchase and get a great deal from someone who has been trying to sell a home in a market that is bad for getting a bank loan.

 

The pound to dollar exchange rate is not that good just  but you can still make a profit buying overseas with cash. The experts predict that this will continue and that if you have the cash to invest, you can get great deals and also “win” high-sought properties from people who need to purchase with a bank loan. If you can avoid it, experts say you should not borrow to purchase property, especially investment real estate. 

Should you Still Invest in Property

I am often asked the question at seminars and speaking engagements ‘Should I still invest in property?’. The answer is not an easy one to answer without knowing your financial circumstances.

With the current trends in house prices in the UK and what many people are calling this another crash in the market, should you still invest in property? Is this a dangerous risk to be a property investor in these trying times? The media may have you thinking you should run away with any profits now and seek a new career for yourself but maybe investing right now isn’t such a terrible idea. How can you know for yourself if it’s the right choice to make?

When you’re trying to decide if you should still invest in property, you should look at past trends in the market to help you make your decision. We can always look to the past and common trends to give us an idea of what might happen in our future. While it’s impossible to completely predict the future of anything, especially the housing market, we can look to past trends to help us guess what could happen in the future and when the best time to invest will be.

Over the past 40-70 years, there have been dips in the UK house prices but the trend has always been up. While things will dip or sloop in the financial market and the housing market, they always come back up again. A great investor will learn how to ride these trend waves and always come out on top. Part of achieving this will depend on your ability to predict the trends and where they will go as well as when there will be highs and when there will be lows.

How can you know how in 2008 and going into 2009 if you should still invest in property? The first thing you need to consider is what type of property you will be investing in. Are you buying to rent, to resell or for some other purpose? Knowing your purpose for investing will greatly help your ability to invest in property successfully even in what may seem uncertain times for the housing market in the UK.

Overall, property investors have actually had it pretty good for the past few years. Almost anyone who wanted to make money buying a property to rent in the country could do so successfully. You could pretty easily make money buying a property to rent as a long-term investment. Even in poor economic times, people need a place to live.

When houses aren’t easy to buy, this means there are more people looking to rent. This means there is a market for you as well. All you need to do is get your priorities in line, research the market properly and pick your target market carefully. When you find a good location, and if you find a great price, you will be on your way to a great investment opportunity.

Rural property is one option that is popular for investors. This is a good time to buy a rural property for less than its market value. You can also find old fashioned homes or homes that need updated which make a great investment property. Many experts in the field believe 2009 will bring an increase in growth of rentals which means good news for property investors but of course, no one can ever be certain what the future holds.

So far it looks like 2009 could be a good time to buy to let or invest in rental properties but ultimately only you can make the final decision of whether or not you should still invest in property at this time. The same basic rules to all types of investing will apply: never invest in what you can’t afford to risk. Just in case things go for better instead of worse, you want to be sure you are protected.

First Time Buyer Help

If you’re looking to buy a house for the first time in the UK, you might have a lot of questions, especially if you are buying right now in a market that is a bit unstable. Lenders are not giving home loans as often as they once did and getting a first time buyer loan can seem even more difficult.

This is an uncertain time for home buyers. Average prices are around £169,000 so are still very high in most parts of the country although we are seeing them dip in many areas. In addition to the high prices, banks don’t want to give out loans and are more restrictive and selective with who they loan to especially if you are a first time buyer.

For many first time buyers, getting a loan is the most difficult part of the process. For others, getting a deposit or handling the legal fees is also a problem. For still others, understanding the paperwork, acquiring the necessary paperwork and understanding contracts is a problem.

Types of Help

So what types of help are out there for people who are trying to buy a home for the first time? One of your first steps should be to obtain as much information as possible, so one type of help is in the form of knowledge. You need to learn as much as possible about the home buying process and how it all works. You should learn about contracts, terms, types of loans, mortgages and more so that when you start the home buying process as a first time buyer, you are more informed.

Next, you need to know how to find a property. Don’t avoid getting help with knowing what type of home you need, how much it should cost and how you can get it. You also need to seek Home Information Packs. The introduction of Home Information Packs (HIP) in the UK helps make the property buying process more transparent, quicker, more efficient and smoother. You should take advantage of this help tool as well.

Other ideas to help you afford your first home include:

The more you learn about the different types of help available, the more you will see that it is possible to purchase your own home.

Help from the Government

Recently the government announced its plan to help first time buyers get into the property market. This means there are even more opportunities available and if you are a first time buyer, you should look into all of these options that might be available to you.

These new measures include £1,500 grants to help qualifying buyers with costs such as solicitors’ charges and furniture, as well as a part-buy scheme offered to key workers and certain first-time buyers. This is all part of a government effort to encourage and assist first time home buyers. You can find out if you qualify before you give up on being able to purchase your first home. Social tenants, key workers and first time buyers can all qualify for the government help.

So far the government said more than £3m has been allocated for the grants – enough for 2,000 people. These grants will be offered to buyers who participate in the government’s Open Market Homebuy Scheme (OMHB). This program helps buyers take out a mortgage for a percentage of their home and then another separate loan, called a shared equity loan, from the government and lenders to pay for the balance. This program helps first time buyers who might not otherwise be able to purchase a home. 

Today more than ever before we see people trying to “go green” and this includes home owners and people in the real estate business. It’s being promoted throughout the world in a multitude of countries, particularly in the US and UK. We see shopping centers and grocery stores offering reusable shopping bags and even consumer products being made with less packaging to save on waste but this is just the beginning of the many ways you can be one of the new types of eco warriors. You can take a proactive approach towards a better environment when you buy your home.

People in the market to buy a home are also going green and there are many different things you can do to a new home to make it more eco friendly. If you are in the business of buying to resell, this can be a great advantage. If you buy a home then make it more eco friendly, you can market this feature when you resell.

Here are some examples of ways you can be the new type of eco warrior and make your home more environmentally friendly:

• Solar panels
• Wind machines
• Reclaimed timber
• Recycled water/ gray water
• Create/build a compost

IN some cases, you may need to install these devices or equipment in your home to allow for a more eco-friendly home. However, if you can purchase a home that already has these features installed, it can be a great investment. More home-sellers and home-builders are starting to understand this and make these types of homes available to more people.

There are many places within the UK to go for more information on this but the Internet is typically a great place to start. Searching online you can learn more about each of these methods, how they work, what they do, why they help the environment, how you can use them yourself and what type of financial obligation or investment you’re looking to have to start.

You can also begin to search for real estate agents who deal in this type of eco-friendly home building and renovation. Even if you’ve already purchased your home, you may be able to get information on their vendors and where they get their eco-friendly homes or how they have their homes renovated. This can provide you with important leads to getting your own changes made and possibly even saving some money, too while you’re at it.

You can even invest in eco-friendly products and furniture for inside the home. Products made from recycled materials, furniture made from reclaimed wood and even folk art decorations all make the décor of a home more eco-friendly. There are numerous ways you can decorate your home while doing something good for the environment.

If you’re looking to buy a home that is eco-friendly, you have many options there as well. You can search for firms or real estate agents that put a focus on selling eco friendly homes. If you are in the market of selling yourself, it can be very profitable to remember that eco-friendly homes make for a great selling point. Since more and more people in the UK are starting to care about eco-friendly homes, we will see more of them on the market.

For more and more people to start buying and living in eco friendly homes, they need to be more affordable. Many home builders and sellers in the UK as well as some other countries, such as the US, are trying to achieve this goal. This is the new type of eco warrior. Will you join the fight and support the efforts?

Follow the Students

With property developing, it pays to follow the students. If you are in the buy to let market, it can be a great idea to buy properties near a university. Many parents are renting flats for their children and even some students with part-time jobs join up and rent their own flats or small homes together near the campus.

This means there is a great market near campus and universities for someone looking to invest in a good buy to let piece of real estate. However, you may notice that properties near universities are expensive and may be more expensive than an equal valued property in another location. How can you know if this is a good purchase to make?

There are different factors that go into making your own personal decision about what to invest in but in general, it pays to follow the students. Your first step should probably be to research the market in the particular area you are considering investing and also research the university that is in that area- how many students does it typically have, what ratio of these live off campus, etc. You also need to understand the benefits to buying near campus even if the property costs more than you would usually expect to pay.

Why Buy Near Campus

So why should you buy houses near a college or university campus? When you think about it, the logic makes perfect sense. Students are always going to be attending college and those students will always need a place to live. Not everyone can live on campus of the university and not everyone wants to. Some students prefer the privacy and independence of living in their own place. Others choose to live near campus instead of on campus because it is easier to get to part time jobs or other activities.

Whatever the reasons why students live there, properties near universities will always be greatly popular. Since there are classes happening at college all year long except when on holiday break, you can pretty much guarantee that your property will remain occupied at all times as well which is just another advantage to buying near universities.

Buying to let near a university can be a great investment to keep your property occupied and to make money from students (or their parents) who need to live near the university they are attending. Don’t forget however, that you will need to maintain the property and that sometimes college students do not take the best care of their flats or homes so be sure you have the proper contracts and other legal protection in place.

House Prices Near universities in the UK

What kind of prices are you looking at when buying a house near universities in the UK? Over the past 5 years or so, these house prices near most of the UK’s biggest universities have climbed to surpass average UK prices for property. In some cities, the prices have increased 50% or more in these college towns and many expect it to continue to climb.

In fact, many of the house prices in university towns are so high that parents looking to get a place for their children are forced instead to rent a flat or home near the campus. Many parents are opting not to buy a flat for their student in university but instead to rent, especially since the student may only be there for a short amount of time.

All of the 10 most expensive university towns in the UK are found in Southern England, with Guilford reported as having the highest prices (according to the Halifax). You can expect to pay around £363,503 for a home there and anywhere from £326,403 to £343,332 at other surrounding areas such as Winchester, Bath and Belfast.

Beware of the ‘Quick Sale’ Companies

If you are in the business of trying to sell your house, you may have already heard about the many companies in the UK that are offering a quick sale of your house. Often these companies will even offer as little as 75% of the current value. They will promise you they can help you stop repossession or foreclosure on your home, cover your legal fees up to a certain amount and even get you an offer as soon as they have reviewed it.

Most “quick sale” companies state that “your reason for selling is your business” and they will help you sell fast and get as much as possible for it in as short a time as possible. This could sound like a great deal to someone who is desperate to sell their house, especially if they are facing foreclosure.

However, you must beware of the quick sale companies for this very reason. They often take advantage of the most vulnerable and desperate people who are afraid of losing their homes and don’t know who else to turn to. They may make big promises when really you lose big on your house and still have to find a place to live.

Some of these promises they are not even able to fulfill so be sure you look into the company thoroughly. Some things you may see promised by a quick sale company are:

• Guaranteed firm offers
• Sell in 7 days
• No obligations
• Inaccurate percentage quotes
• Up-front fees/ promise of no up-front fees
• Equity release alternative
• Sell and rent-back

Before signing any contracts you need to learn as much as possible about the company, their offer to you and your other options.

How to Keep Your House

If you are at risk of losing your home, there are other options for you to consider before jumping on a “quick sale” that may hurt more than help. Here are some things to consider for keeping your house:

• Communicate with your lender- this is the first and most important step. Your problems begin at the first time you miss a payment but often they will work with you if you communicate with them. There are situations where you can seek extensions or other arrangements may be available but you cannot seek these options if you don’t communicate.
• Set up short term repayment plan to make up the deficit.
• Add the unpaid balance to the principal of the loan and slightly increase your payments to make up the difference.
• Temporarily reduce or waive your payments.
• Offer a deal in lieu of foreclosure.
• Consider a legitimate credit counseling service.
• Consider your refinance options.
• Consider government aid options (more about this later)

Before you think your only option is a “quick sale” company, make sure you take time to research other possibilities.

The Government Can Help, Too

Recently the government announced to the banks that they will be helping people who are in danger of losing their property for non payment. It’s possible you could qualify for one of these programs or for some type of government assistance to help you keep your home.

Before you run out for a quick sale option, get all of the facts. Beware of the “quick sale” companies, regardless of what you may have heard or what they may promise they can do for you. If you’re in danger of losing your property due to non payment or just seeking to sell your home quickly, consider all the options you have first.