Buying property outside the euro zone

Bulgaria is not a member of the euro zone,
therefore its currency is protected from
shrinking economies within the euro zone

Interest in vacationing ensures that there
is always demand and affordability in
Florida’s property market

Canada has undeniable natural appeal
and is a popular vacation and second home
choice with North Americans and Europeans

Isla Margarita – the perfect location for a
second home in the sun or an investment
property?

The Limpopo-Lipadi Game and Wilderness
Reserve in Botswana offers investors an
alternative market opportunity

Part One – Bulgaria, the USA, Canada, Isla Margarita and Botswana

The euro zone is the name given to the 16 European Union member states officially involved in a currency union and which all use the euro as their sole sanctioned currency.

The main aim behind the creation of the euro currency was the creation of greater political solidarity within the EU; but by having a common currency, participating member states have additional benefits such as the elimination of currency fluctuation risks, transparency of pricing, reduced transaction costs and increased market expansion opportunities for greater inter-European trade.

It was these benefits that everyone was focused upon until recently, when significant stagflation across the euro zone led to an undermining of the euro as a currency. As we begin 2009, some expert predictions for the euro's prospects in the coming year seem negative; therefore it could be worth considering some alternative markets outside the euro zone.

In the first installment of this two-part feature, we look at a selection of the world's key destinations outside the euro zone, namely Bulgaria, the USA, Canada, Isla Margarita and Botswana, which some buyers are considering with the aim of finding the best value for money and the potential for property investment success.

Part two of this article goes on to take a closer look at five other key locations outside the euro zone, namely Egypt, the Philippines, Brazil, Tunisia and Thailand.

Bulgaria

One of the many benefits associated with investing in an emerging market such as Bulgaria, is the fact that, although it is in Europe, it is not a member of the euro zone, therefore its currency is protected from shrinking economies within the euro zone

International companies looking to work in Europe but avoid the issues of working with those who adopt the euro are being increasingly attracted to city-based locations in emerging markets.

The global property investment company, Aston Lloyd, is currently offering buyers the chance to invest in their latest development in Bulgaria – the Aston Hotel Sofia, located 15 minutes outside Sofia in Kostinbrod - a rapidly advancing business, financial and governmental district.

The area has recently invested €2.5 million in infrastructure development and a further €105 million has been received by the European Investment Bank (EIB) to upgrade the rail network. For more information, visit www.astonlloyd.co.uk

The USA

Thanks to the US dollar's demise against the pound in 2008, America was becoming interesting once more to British investors looking to get more for their money abroad.

However, the decline in America's recent economic fortunes put many off the now highly-attractive and well-priced market. Now that a delicate balance between advancing economic and political prospects and a strengthening currency has been achieved, increasing numbers of astute buyers are looking for dollar priced property in locations where there is reason for strong and increasing demand for real estate.

One such location is of course Florida, where tourism drives the economy and where national and international interest in vacationing ensures that there is always demand and affordability in the state's housing market.

The estate agency, Barton Wyatt International, is currently marketing a project in Orlando called the Ginn Reunion Resort & Club, which has been dubbed 'a new breed of family resort.' For more information about investing in this resort, visit www.bw-international.com

Canada

If America does not currently appeal because you feel President Elect Obama has yet to prove himself and the economy is still suffering some of the same symptoms as the euro zone, the investment experts at Undiscovered Properties would argue that there is only one alternative worth considering, namely Canada.

Canada still has a very robust economy with financial fundamentals which support continued economic growth. It also has an undeniable natural appeal and is an increasingly popular vacation and second home choice with North Americans and Europeans.

Investors wanting to cash in on Canada's tourism prospects may wish to consider the Eagles Ridge Golf and Country Club which is currently being marketed by Undiscovered Properties, for more information, visit www.undiscoveredproperties.com

Isla Margarita

An emerging market well outside the euro zone but well inside the eternally attractive Caribbean zone is Isla Margarita. According to Mark Andrew from Caribbean property and investment specialists, Emerging Earth, the island is particularly attractive for British and European buyers because "it is just the perfect location for a second home in the sun or an investment property in a rapidly up and coming resort."

He goes on to say: "The island benefits from the fact it is outside the hurricane zone yet well within the Caribbean and therefore of maximum appeal to all those going in search of warm seas, perfect soft sand and an ideal climate for most of the year.

"The island is also seeing massive increases in tourism numbers as word gets out about this incredibly affordable haven where there are tax breaks for buyers and where there are property projects like Caracola which offer buyers a tax efficient purchase structure, insurance bond backed guaranteed rental returns of 7% per annum for ten years, and where the properties are located in a front line position."

For more information about Caracola, visit www.emergingearth.com

Botswana

For investors seeking the ultimate in terms of an alternative market opportunity there is a project available right now in Botswana. The Limpopo-Lipadi Game and Wilderness Reserve is not your typical property investment, nor is it your typical second home or lifestyle property purchase, it is a unique investment opportunity found in the heart of the southern African country of Botswana. For more information, visit www.limpopo-lipadi.com

Click here to read part 2 of this article which takes a closer look at other key locations outside the euro zone, namely Egypt, the Philippines, Brazil, Tunisia and Thailand.

Information courtesy of AB Property Marketing Ltd.

© PropertyIndex.com 2009 | Last Updated: 28th January 2009