Top ten property investments for 2009

Before continuing our exploration of Historicismus-style buildings in Berlin, a quick glance on an interesting article from Country Life…Berlin is the top 4th world-wide real estate location on their ranking.

AflatinBerlin fully agrees. At par with London and Paris on the sightseeing ground, Berlin lags behind the two other capitals when it comes to business attractiveness (but that doesn’t mean it won’t change!)  but wins in terms of entry price, quality of buildings (old and new) and refurbishment craftmanship and most of all on the city’s logistics.

So, in terms of value for money & quality of life, Berlin for us is number one! Actually, it indeed came first in the ranking last year, but due to the bust of several real estate bubbles elsewhere in 2008 (and Berlin had had its bubble thing a decade or so ago), this is why Berlin only ranks number 4 now.

The fundamentals in Berlin didn’t change, and recession is going to hit everybody, so looking on a long-term trend Berlin remains highly compelling. The pros and cons highlighted by John Howell a year ago did not change with the recession:

“Berlin is a city not only in the past divided between East and West but also divided into very distinctive and independent neighbourhoods. Some of these will do much better than others. Some of them are seriously bad places to think about investing. Which property is most likely to rise in value? I believe that the biggest gains will come from the older (pre WW2) properties. Berlin has one of the lowest concentrations of old property of any city in Europe (…) Less than 25 per cent of the city predates 1939. Many of these remaining building are character buildings but in poor repair but there are now developers specialising in the restoration and conversation of these properties”.

Hence our love for Altbau and Ideal Neighbourhoods!!

You can find the Country Life article herebelow, or the original, longer one here. Of course if you look around you may find that other locations make it in the top 10, according to different sources.

Some mention Slovenia , and it does make sense, especially if you live in Triest, many among our friends did the move over the past 12 months. Others mention exciting Turkey…before the Euro gets there, moreover Istanbul will be 2010’s capital of culture. It all depends on what do you want to do with it and how much you want to commit…

Top ten property investments overseas for 2009

The most lucrative places to put your money this year, from snapping up a bargain in the sunshine state to investing in a Slovakian warehouse.

country_life_cover_jan_7_2009_e_ef1fb3b65cefb809ee79527673edc2cf

Tuesday, 06 January 2009

Cheryl Markosky

Buying a home in the right destination for the right price is even more important these days. Expert opinion varies on which will prove to be the most profitable investments outside the UK this year, but according to The International Law Partnership, the top 10 is not just about the best location, but also about the way you buy.

A smarter way of thinking is crucial right now, points out John Howell from The International Law Partnership (www.lawoverseas.com), and sensible investments will almost always include:

* timeless destinations that will always hold their cachet
* reduced stock in quality places
* alternative methods of investing (like repossessions and distressed sales)
* investment in developers and more adventurous destinations

Mr Howell’s top 10 investment choices for 2009 are:
1 Paris
Paris was recently voted best risk adjusted investment location by PricewaterhouseCooper. It is the most visited city in the world and well placed to weather the current recession. In Paris, location is everything. The third and fourth arrondissements are good areas to search, with heavy rental demand and reasonable prices compared to the more fashionable sixth.

2 Miami
The city was heavily hit by the property crash, and you can pick up good, central homes at half the price they were a year ago. Property is being sold at less than the amount it cost to build it – always a good test of value. Experts think the bottom of the Miami market has been reached – or nearly reached – so it is a good time to buy for capital growth in the mid-term. Buyers must choose well and a sensible rate of return – 4-5% – should be possible.

3 London
There are startling bargains to be had in the English capital. Riverside apartments are being shifted at half their original value, and they should let well until a capital gain is made. Another plus is that there are no currency exchange risks to worry about if you invest in London.

4 Berlin
Berlin has in fact proved to be an unexpected top destination for investment for the last two years. Property prices fell sharply with reunification and Berlin is a place where locals still predominantly rent, thus a supply of middle-class tenants. Taking a 5-10 year view, Berlin is a fantastic investment spot.

5 Spain
Despite recent problems, Spain will always be the nearest destination where you can guarantee good weather for most of the year and the infrastructure can support large numbers of British retirees. The overpriced market has, in effect, collapsed. Now spectacular bargains are available.

6 Distressed sales
Many people are in financial difficulty and are desperate to sell. Investment properties not pulling in a quick profit can be picked up at give-away prices. Another variation is to buy heavily discounted units direct from the developer.

7 Repossession
As ghoulish as this might appear, you can get hold of true bargains once homes are repossessed by banks. But, you need local advice and you should inspect the property before purchasing. Buying a repossession at auction can be expensive and it might be better dealing direct with the bank.

8 Investment in developers
Rather than buying a property with all the attendant worries, you can instead make a welcome fixed interest investment with a developer. Your money will be tied up for only a couple of years, but obviously you need to check out the status of the developer to ensure your money will be safe.

9 Commercial property in Slovakia
It may sound strange, but Slovakia has one of the most successful economies in Europe and is a recent entrant to the EU. Whether you are investing in a small corner shop or a warehouse, prices are competitive and returns good.

10 Morocco
A more adventurous location, but Morocco appeals for several reasons: it is close, French-speaking and has good weather almost all year round. The Moroccan government has made a commitment to improve the country’s infrastructure and there are three different markets here: on the Mediterranean and Atlantic coasts and in Marrakech.

Mr Howell adds a further word of advice: ‘It is now more important than ever to take advice, think carefully about the reason behind the purchase and make sure you buy the right property at the right price and at the right time.’

Advertisements

3 Responses to “Top ten property investments for 2009”


  1. 1 bob January 7, 2009 at 12:32 pm

    … avecce i sordi, londra potrebbe essere interessante adesso (sterlina<euro!!!)

  2. 2 stripedcat January 7, 2009 at 12:57 pm

    gia’ gia’…ma solo a Berlino si trovano monolocali a partire da 25.000 eur…that’s the beauty of it! e’ una citta’ veramente democratica, non boutique-town…
    ;D


  1. 1 Top ten property investments for 2009 « A flat in Berlin | dairyfactory.com Trackback on January 7, 2009 at 4:42 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Enter your email address to keep track of what's going on at AflatinBerlin - check your Inbox (and Junk mailbox too) to activate the subscription!

Join 10 other followers

Archives

Blog Stats

  • 37,672 hits

%d bloggers like this: