3 Riskiest Property Investment Punts

3 Riskiest Property Investment Punts

3 1582

risky-investments
I am a watcher, a hoper and an optimist (well most of the time anyway). The complete opposite of my cautious father who will only voice what he knows to be true, I love to take a guess, have a gamble and forecast the future.

I forecast what markets I think will make money over the short-term and what markets will make money over the long-term. But I guess some of my father’s cautiousness (yes, it is a word) must have rubbed off on me, because I only make a forecast if I am certain — in myself — that it will come true, and — touch wood — this has stopped me from ending up with egg on my face thus far.

Unfortunately, this also boxes me in sometimes though; and leaves me with some markets that I would like to shout about but can’t because I am just not sure enough. So, below I will finally get a chance to shout about these markets, not recommending them for short or long-term investment, simply as the markets to watch and see if they do indeed become the property hot-spots of the future.

Egypt

I would love to put Egypt in the long-term investment recommended box, or even the short-term investment recommended box, but it is all very dependent on whether or not the government can successfully improve the wealth distribution problems within the country.

Don’t get me wrong, Egypt is growing in popularity as a tourism destination; Hurghada especially and with Hurghada property available for under £15k one would wonder how it could fail. However, if you invest now, and the wealth distribution problems are not resolved then you will be almost completely reliant on foreign buyers when it comes time for you to sell and realise any gains made on your investment.

After the international downturn showed everyone how unreliable foreign buyers can be, a property investment now lives or dies on the reliability of its exit strategy, and better distribution of wealth would give Egyptian property’s much more reliable.

Okay, the properties available to international buyers are luxury resort or hotel style developments, but this makes better internal wealth distribution even more important, because you are looking further down the line to when the population starts looking at second homes, and buy-to-let investment within their own country.

All that said: if I was currently in the market to buy an overseas property as an investment, Egypt would very much be on my short-list, as it will be when my kids have grown up and I do start shopping around for my holiday home investment in the sun.

Iraq

This is a whacky one I know, what, with it being still — technically — a warzone. But currently the terrorism is sporadic.

The troubles in Iraq are based on religion, politics and organised crime; in fact the current situation is comparable to Ireland at the height of the troubles.

Eventually even chaos becomes orderly and who knows what Iraq will be like 25-35 or even 50 years down the line. Admittedly it may be worse, or unchanged, but it could also be a safe and secure destination as Ireland is now — for the most part and on the surface anyway. Ireland has just seen one of the biggest property booms the world has ever known, largely because of the improved security and that is why Iraq is one to watch.

Sure, Iraq may never be a very safe place for “westerners” to live or holiday, but that doesn’t mean we can’t make profitable property investments in the country, does it?

Venezuela

Latin America is currently one of the hottest emerging economic regions in the world. Venezuela is well placed to be swept up by this incredible growth, not least because of its vast natural resource banks, but the economy is being badly mismanaged by the maniacal Hugo Chavez.

No one is touching Venezuela property at the minute because of the risk that the leftist government headed up by Chavez would reclaim it for the state. The government is not making it very easy for foreigners to buy property in the country anyway.

So Venezuela is one to watch primarily to see what shape politics takes over the next 10-15 years; to see if the population decides to vote in favour of capitalism and empowers a government more likely to open the country up to foreign investment inflows.

Article written by Liam Bailey of Property Abroad.com

Image source: kyz via flickr