Investors are attracted to investing in real estate because the potential for profit is huge. More so than other established investments. That said, perhaps one of the most important aspects of choosing a real estate investment nowadays, is determining a profitable exit strategy before making a long-term financial commitment.
It would seem that in today’s market, investors are concerned about the liquidity of real estate investments above all else. Because of this important investing criteria, the location of the investment property will heavily influence the decision whether to invest in a particular market; or not.
It is strongly recommended that you do not take investment guidance from a real estate agent. They only get a commission when you buy. To them, everything you buy from them is a good investment. You
can should expect that an established and well-experienced real estate investment broker will have current market details, forecasts and projections, and will likely provide better insight to help you make a confident and educated decision.
Before discussing the details of an investment with a broker, manager, or agent, take a moment to review the market fundamentals and expectations (below) for each of the world’s major geographic regions.
In Singapore, Shanghai, Hong Kong and Bejing, demand for real estate has remained high, despite a difficult recovery from the global financial crisis. Limited land availability and a sophisticated, mature market has allowed many of Asia’s big cities to rebound better than others around the world.
According to a study from Grosvenor (a leading U.K. property developer), Canadian cities top the world for the real estate markets that make the best bet for a long-term investment. In the report Grosvenor identified Toronto, Vancouver and Calgary as the country’s three top spots.
Despite concerns over weak fundamentals and economic conditions, real estate investments are looking increasingly appealing across Europe and are expected to be more profitable in 2015. The five leading cities for investment consideration in 2015 are: Berlin, Dublin, Madrid, Hamburg and, Athens.
U.S. economic growth surpassed analysts’ forecasts in 2014 and, according to the International Monetary Fund, the American is expected to expand by 3.1% in 2015. Barclays has projected that U.S. home prices will increase by approximately 3% in 2015 and another 2% in 2016.
Buying property in Costa Rica and Mexico, for example, has been popular among Americans and Europeans for decades. Lots of people who purchased property in the “up-and-coming” areas 2+ decades ago have been able to sell their properties for 5, 10, even 20 times what they paid for them.
Chile is the only country in all of Latin America where property investments offer very low risk and huge upside potential at the same time. Chile will be benefiting from both domestic growth and increasing foreign investment for many years.
Continued low interest rates and the rising demand for rental properties are creating a profitable opportunity that is growing increasingly appealing to savvy investors, as well as fund managers around the world.