Investment Guide

Introduction

Investment in property, or real estate as it’s called in most English-speaking countries other than the UK, has never been more popular. Investor anxiety about poorly performing shares and pensions has seen tens of thousands of Britons place their trust in bricks and mortar in order to secure their future prosperity.

Initially, the UK’s booming property market – according to data produced by the Economist, house price capital appreciation between 1997 and 2004 was 147 per cent, which, in Europe, was second only to Ireland – saw investors put their faith in the real estate at home. However, around mid-2004, as the market in Britain peaked, the canny speculator turned his attention overseas.

In truth, the really savvy investor had long been putting his money into overseas property. In keeping with the UK, the global real estate market began to rise in 1997. Capital growth in South Africa was the highest worldwide, at 195 per cent from 1997–2004. However, unlike in the UK market, house price inflation continues unchecked in many corners of every continent.

For example, in the first quarter of 2006, Estonia witnessed capital growth of 17 per cent – the highest in the world ¬– in year-on-year performance, according to the Knight Frank Global House Price Index. The figure will make for an impressive return for those who entered the Estonian market last year, but what all investors will want to know is not where has performed well, but where will do so next.

In preparing this guide, we aim to provide an introduction to property investment, outlining the what, where, why and how, to assist you in your ambition to build a profitable international property portfolio, whether you are investing overseas for capital growth or for income.

INVESTING FOR CAPITAL APPRECIATION

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