Article by: Mike Dunkerley mike.dunkerley@thegpg.com Published: 02/01/2006

The answer is yes. It's a big world. Manufacturers in China are experiencing boom times. Call centers in India are growing faster than ever.

It's all a matter of looking to where there is good news and the potential for growth. Look East not West! And if you are looking to profit from property you don't have to go further than the Eastern Mediterranean.

In a lot of these countries costs are lower - but why? Part of the answer is that wages are lower. However, a larger part of the answer is that the Global Financial Institutions, the International Banks are undervaluing the currencies of these countries. They have been used to dealing with the familiar Dollar, Yen, Stirling and the currencies now in the Euro. It takes a little time for the newcomers to become respectable. The Chinese Yuan, the Indian Rupee, the Turkish Lira are still treated with more than a little suspicion.

However, why should a 4 bed, 3 bathroom, luxury villa with swimming pool on the Turkish coast cost as little as £60,000 when a garage in central London costs more? Over a period of time a more realistic balance of value will be struck and under valued currencies will rise making a tidy profit for property investors holding assets in them. The biggest profits usually accrue to the early investors.

So what is stopping investors from piling into the 10 new member states of the EU, Bulgaria and Rumania, the former Yugoslav republics (Croatia especially), Northern Cyprus and Turkey? Property investors should ask themselves 2 questions. One - will anyone but me want to go there and Two - can I get good, sound and legally defensible title to my property.

It happened in Spain 20 years ago, it happened in Florida 5 years ago, it has started to happen in Bulgaria and now it is starting to happen in Turkey. Lets return to those two questions. One - Turkey has sunshine all year round, the cost of living per couple is around £25 per week, council tax is around £20 per year, banks currently pay around 15% interest on deposit accounts, doctors will take you on as a private patient for about £200 per year - why would enough people not want to go there and thereby push up property prices. Two - In Turkey you get full legal, fully searched, freehold title to the property in your own name (even as a foreigner).

In 2004 in Altinkum you could buy a 2 bed apartment for £15,000. In 2005 the same property would have been around £25,000. The build quality is excellent. 3 and 4 bed duplex apartments are still available for between £30,000 and £40,000. 3 and 4 bed villas with pools, balconies, roof terraces, marble staircases, fitted kitchens, 2 lovely tiled bathrooms start from £50,000.

World events and property! Turkey is a prime example of how World events can impact a Country and specifically for this article, an overseas property market. The World event in question is Bird Flu and its spread across the World. Turkey looks like it may be the first place to be seriously impacted by this virus in terms of economics as holiday bookings to Turkey and interest from property buyers during 2006 may be down on previous years... we will not know until later in 2006.

On the positive side of this some overseas property investors may see any slow down in the property market due to Bird Flu as an opportunity to buy, only time will tell. For more on this see 'Overseas Property : always surviving disasters'.

We have not fallen out with the rest of the world, far from it. Property in Spain is just a 2 hour flight away and it offers lots of recreational facilities and a great climate - ideal for a weekend visit. Property in Florida is palatial - the Americans like their homes big and roomy with all mod cons. It is also hard to think of another area on the planet that can offer as many tourist attractions as Florida!

We are always happy to discuss your requirements over the phone and I, Mike Dunkerley, can be contacted on 0044 (0)1242 524 081.

Happy holidays,

Mike Dunkerley

Regional Director

External Article Link: http://www.thegpg.com/overseas-property-news/property-news.cfm?id=2

Article Link: http://www.thegpg.com/overseas-property-news/property-news.cfm?id=2

Please contact the author at mike.dunkerley@thegpg.com for more information.