As people reach their 50s, it is natural to begin to look at ways of investing that will provide a good income into old age. There are many different types of investment available, but property has always been a popular choice. However, in recent years, it has appeared that property may not be the safe haven for our money that it once was. Property prices in many parts of the world have fallen. Is it time to look for another investment vehicle?
Property can still be a good investment. You just need to know where to invest your money. Investing in property abroad can be a good investment if you choose the right country and the right location. Yes, there are always risks, but buying a property abroad can also be a good investment for your old age. In some parts of the world, such as the Caribbean, investors are being targeted with attractive tax incentives.
If you want to invest close to home, Barcelona in Spain is a good bet. True, the Spanish economy has not been doing well, but the market now appears to have bottomed out, and this beautiful city is well known for bucking the national trends. The Spanish government is also keen to attract overseas buyers, so now could be a good time to invest.
The French Riviera has also not fared too well in recent years, with many people offloading their properties thanks to a 25 per cent cut in capital gains tax. However, it is almost certain that the top-end of the market will continue to do well.
Investing abroad does not have to mean just Europe. True, it is a place that most people are familiar with from family holidays, but other parts of the world also offer great investment opportunities. Brazil is one of the emerging economies, and thanks to the government’s drive to end the housing shortage, more properties are coming on the market. This could make Brazil a great place to invest.
The Middle East is another great investment choice. Whilst the price in oil may have dropped recently, the countries of the Middle East, such as Kuwait and the other oil-rich Gulf States, still have plenty of money to spend on development. The Director General of Kuwait’s Public Institution for Social Security is responsible for a massive portfolio that includes construction projects, and even when the economy dips, money continues to be put into investments both within Kuwait and overseas. Dubai was once the ultimate boom-and-bust destination, but whilst property prices may have slowed (a 30 per cent increase in Dubai’s terms is seen as simply a lull), it is considered to be a safe place to invest your money.
Investing in property overseas, if done correctly, can offer many benefits. It can be a good investment and also provide a beautiful holiday home. Diversification is a good way of assuring that you get a good return – choose from rental, land or hotels.