Author:
Ivan Radford
As the New Year begins, real estate investors around
the world will be looking to new areas for strong returns and capital growth,
while holiday home hunters will be scouring sunny destinations for an
affordable deal. Where should you buy property in 2016?
We quizzed some of 2015's top estate agents on
TheMoveChannel.com for their thoughts on the last year and their predictions
for the future.
The current market
Cayman is experiencing a housing boom, explains Darryl Pickthall, Director of CrownWorld.
"Its number of living units and guest accommodations is increasing
dramatically. Moreover, the price per unit/ft2 is increasing too. Much of the
residential building in Cayman serves the tourism industry and this sector is
thriving.
"Prime building land is scarce so the economies of supply
and demand take over."
"Last year, the company saw land sales in the Cayman Islands -
specifically, the Sister Islands, Cayman Brac and Little Cayman - increase by
almost 300 per cent, which equates to "more than double that of any
comparable period in the past eight years," adds Pickthall.
"I believe some of the most important reasons for being interested in
Cayman Brac and Little Cayman is the British Overseas Territory status that
both islands have along with the Cayman Islands. And obviously when you are
looking at investing somewhere, what you want to know is that you are going to
put your money into safe territory. So for a worldwide investor, the Cayman
Islands are extremely important and extremely useful as tools to invest in.
"
"At the start of 2015 Li Ka-shing, Hong Kong’s richest man who has a
reputed personal wealth of $33 billion, surprised analysts by moving the bulk
of his substantial wealth from Hong Kong to this little-known Caribbean
tax haven," he explains. "This trend continued throughout the year
with many eagle-eyed private individuals and institutional investors viewing
Cayman as excellent territory to invest in land, primarily because of its safety
as British territory with little currency risk (9th strongest in the world) and
also because of its lucrative real estate market and the potential for high
capital growth."
What's
in store for the future
CrownWorld say they are "optimistic" going into 2016, noting that
Savills Global Research highlights Cayman as one of only two global real estate
markets with projected ‘high-growth’ for the next five years.
"Cayman has a growing pipeline of new projects, significant infrastructure
investments and a softening in relations between the USA and Cuba are also
expected to provide an additional boost to the region," says Pickthall.
Coming
to the market soon...
In 2016, CrownWorld will offer investors the opportunity to own 'care-free'
freehold building plots of land with permission for residential homes.
"'Care-free' means you don’t have any schedule to build on the land so you
can simply buy the land and hold onto it…for as long as you like,"
explains Pickthall. "You can build when you are ready. Build at your
discretion.
"With prices from only £35,000, interest free payment plans and no holding
costs; this is truly care-free."
The current market
Canada and Brazil have both emerged as firm favourites among investors on
TheMoveChannel.com, both appearing in the site's top 10 most sought-after
destinations for 2015. Brazil, which is now preparing for the 2016 Summer
Olympic Games, has had interest boosted by the weak value of the currency,
while Canada's appeal to international investors has echoed the controversy
surrounding Australia's popularity, as prices rise in the heated markets of
Toronto and Vancouver.
Landcorp International, which
advertises property in both countries, had a "fantastic" 2015, with
broadening interest from investors around the world.
"We launched various new, online advertising campaigns to reach a wider
audience of savvy potential investors with results exceeding expectations. Our
campaigns have generated a lot of interest from clients in many countries
around the world including the Middle East as well as Europe," a
spokesperson for the company tells TheMoveChannel.com.
"Our investment plot products in 5-star residential resort developments in
Nova Scotia, Canada and ParnaÃba, Brazil performed equally well and towards the
end of the year we launched luxury off-plan property opportunities in both
locations that generated a great amount of interest."
What's
in store for the future
Landcorp International is confident about the coming year,
predicting that demand will remain high for both Canada and Brazil.
"We believe that Canada and Brazil will both continue to attract investors
in 2016 - Canada for its historical standing as a safe, secure country and
Brazil, despite experiencing an economic slump this provides opportunity for
foreign buyers to invest due to the strength of foreign currencies against the
Brazilian Real," adds the company.
"Confidence in real estate and property investment markets has been on the
rise ever since the global crisis began to wane. Today, thankfully the crisis
forms part of our history rather than our present but it is certainly not
forgotten. People want investments with tangible assets rather than placing
their hard earned money into the hands of unpredictable stocks and shares – and
traditionally real estate has remained solid throughout all economic
turmoil.
"This is something that has been a factor in our success as a business
since our inception in 2007 and as the property markets take an upward turn in
many places around the world, we are confident that this will mean we can
continue to offer even more excellent real estate investment opportunities to
our clients."
Coming
to the market soon...
While Landcorp International has recently launched other investment products in
the UK and US student housing sectors, the company has its eye on Brazil and
Canada in 2016.
A Showhome Investment Opportunity will allow investors to enter into a joint
venture with the developer and share the profits. This is soon to be launched
at Forest Lakes Country Club, Nova Scotia.
Fractional Ownership in Pure Resorts Hotels & Residences will give
investors the opportunity to purchase a portion of a luxury holiday home in a
beachfront resort in the northeast of Brazil. (Investment starts from just
£5,000.)
Landcorp International is also expanding from Brazil into neighbouring
Argentina. Newly launched are investment plots in a groundbreaking 5-star golf
and polo leisure and residential community located in Buenos Aires, with a
contractual developer buy-back offering returns of 15 per cent per year.
The current market
The UK has proven hugely attractive among overseas and domestic investors in
the last year, thanks to the country's growing economy, the thriving buy-to-let
market and the consistent returns available from the student housing sector.
Interest has switched from the once-booming capital of London to regional
markets, explains Ray Withers,
CEO of Property Frontiers:
"The UK market has remained strong and steady. Yields are being compressed
by capital growth in prices but certain areas of the UK are still good from a
yield perspective, particularly in the North and in areas where there is a
restriction of supply and/or infrastructure projects are driving demand (e.g.
North Oxfordshire, Slough, Reading and Maidenhead)."
Aspen Woolf reports record-breaking demand from
investors in 2015, with regional UK cities and student housing again proving
most attractive.
"November was one of our most successful in the whole 11 years of being in
business," explains a spokesperson for the coimpany.
"In 2015 we definitely experienced more interest and awareness in the
student property sector from both general buyers and investors. Some of our
most successful and popular products were Leighton Hall in Preston, Fox Street
Village in Liverpool, and Grove House in Manchester.
"We are seeing investors moving away from the inflated prices in London to
the more northern cities of the UK where yields generated are much
higher."
What's
in store for the future
"Moving into 2016 we see even more investors turning away
from London, especially with the new stamp duty rates in place," predicts
Aspen Woolf. "However it might be worth finding a good property in
Stratford as we are positive prices will rise again after it is moved into Zone
2 from its current Zone 3.
"We see Manchester still posing great potential, as well as smaller
towns/cities such as Bradford where internal investment is surging and a new
Westfield owned shopping mall has opened. It is a good idea to see where
further gains can be made from smaller towns/cities as the ripple effect
strengthens."
Coming
to the market soon...
The Rocket in Stockton-on-Tees is newly launched on the market
by Aspen Woolf.
"With an increasing student population and more regeneration happening in
the town, people are looking to move into more modern purpose built
accommodation," says the company.
Just under a 10-minute walk away from Durham University’s Queens Campus, The
Rocket offers 218 studio apartments fully furnished to a high specification.
Investors will benefit from a 10 per cent net rental yield, guaranteed for 3
years. Additionally, there will be 5 per cent interest paid on all deposited
funds.
Property Frontiers will be launching opportunities in a range of regional UK
markets.
In Slough, 19 one and two-bed apartments, a 7-minute walk from Slough train
station, will offer gross yields of 4.5 to 5 per cent, with prices from £240,000.
In Sheffield, 45 one and two-bed apartments on the outskirts of Sheffield
(close to business parks and universities) will offer investors a low price
point and high yield.
In Oxford, 10 one and two-bed units within the city ring road will offer gross
rental yields of 3.9 to 4.7 per cent, with prices from £190,000.
The current market
Property Frontiers says it is seeing "a lot
of interest" in the US market, as people look for "high growth and
good yields in a secure market".
"The USA is seeing some amazing
opportunities, but it is more of a long term investment goal," explains
Aspen Woolf. "However, rental yield can be very appealing as well as the
capital growth if you are willing to stick it out. The key is to keep to good
locations with demand - whether that be beach front, family friendly, heavy
tourist footfall, or a holiday destination."
"We really want to focus on the USA,
especially Orlando, Florida," adds Aspen Woolf. "Why do we want to
focus on Orlando? Well, simply put it has all of these things! Keep your eye
out on what we might bring forth early in 2016."
What's
in store for the future
Aspen Woolf will capitalise on the international
demand for US real estate by setting up a new office in New York.
"We are really excited about 2016 as we get
to branch out further with our offerings," explains the company. "We
will still scour the UK for great investment deals for our clients, but we’re
thrilled to be able to better cater for our clients that want to expand their
international portfolios. It’ll be another exhilarating year ahead for sure!"
2015 was crowned the year of the British buyer in 2015 by
TheMoveChannel.com, as the weak euro fuelled demand for European property in
destinations such as Spain, Portugal, France and Italy.
Aspen Woolf highlights Spanish real estate as an ongoing hotspot for bargain
hunters:
"Investment looks positive in Spain once again as prices have been
steadily increasing during the whole of 2015. For British investors this has
really been a year of bargains as the currency has been in their favour with
the weaker Euro.
"Murcia and the Costa Del Sol are areas to keep an eye on
moving into 2016 still. Tourism was at record highs in Spain in 2015, so it’s a
great time to look at properties with holiday rental potential. "
Coming
soon to the market
Landcorp International will be launching a new, exclusive luxury property
development in Marbella this year.
In Bulgaria, Property Frontiers will be launching a completed resort with a
seafront location, a proven track record and 85 per cent occupancy.
In Germany, Property Frontiers will also be launching 127 luxury one and
two-bed apartments in Berlin, competitively priced from €254,000.
"The last quarter has seen
an exponential growth in interest in International Markets where people are
looking beyond the norm in search of more interesting, and often higher,
returns," comments Ray Withers of Property Frontiers.
"We expect this to continue well into 2016
and whilst we have a lot of UK and US product in the pipeline, I see increasing
demand for International Property into next year, recently spurred on by the
Chancellors changes in tax allowances and stamp duty."
"Emerging Markets, a name we are synonymous
for are also sparking the interest of seasoned investors looking to diversify
their portfolios with more exotic returns and we are looking to Africa in
particular for more opportunities..."
Posts
