Credit Crunch Benefits Emerging Markets

With the credit crunch hitting European and UK property markets many experts believe emerging markets are seen as the best option for overseas property investors.

With the UK property market predicted to tumble by 35% by 2010 many first time buyers and investors are looking abroad for gains over the next few years. In order to obtain a reasonable mortgage in the UK, buyers are now required to put down a deposit of 25% on their properties. In money terms, depending on where you are in the country, this equates to a deposit of approximately £50,000.

Savvy investors and first time buyers are now buying property in attractive overseas emerging markets such as Tunisia realising that their UK deposit could be used to buy a property outright. With significant appreciation expected over the next 2 years, their money is working much harder for them and by the time the UK market bottoms out they plan to realise their investments abroad and buy back in the UK.

UAE Most Luxurious Country in World For Expats

Expatriates in the UAE enjoy a more luxurious lifestyle than anywhere else in the world, a survey has revealed, as economic growth, tax-free salaries and relatively cheap goods allow them to live out their dreams.HSBC's Expat Explorer Survey, published on Friday, found that the Gulf state beat off global hotspots including Singapore, Hong Kong, Australia and the United States to claim the luxury living crown.

More expatriates in the UAE are able to afford added extras such as owning a boat, having a swimming pool, taking regular holidays and employing domestic staff than anywhere else, according to the survey. Foreign residents in the Gulf state experienced increases in 10 of the 11 categories of perceived luxuries measured by the survey. The UAE's luxurious standard of living has helped it become the second most popular country in the world for expatriates to live in behind Singapore, according to the survey.

The Gulf state also scored very highly on how much expatriates can earn and save compared to their home countries, as well as how much the quality of their accommodation had improved. The Expat Explorer Survey questioned 2,155 expatriates across four continents, questioning them on topics such as how easy they found it to integrate, how they viewed the changes in their lifestyle, and their children's experiences in a new country.

Bank of England Holds Interest Rate

As widely expected the BoE has held rates again this month at 5%.

Despite a rapid economic slowdown, the ever present threat of inflation from high oil and commodity prices, has tied the banks for at least the present, in cutting rates.

Investors Favour Emerging Egypt

Investors looking to make a healthy profit from overseas property investment should look to newly developing markets where demand outweighs supply, such as Egypt.This is the view of Adrian McDermott, managing director of Escapes2, who said that countries where the economy is expanding and the government welcomes foreign investment represent the best opportunities for buyers."Every market has supply and demand cycles. So the key for investors is the need to spot a country where demand is rising and supply is limited," he commented.He said that Egypt is one of these emerging markets and remarked that investors have been keen to return to that country to augment their portfolios."If you can find a country such as that, get in there in the early stages and then you will tend to make a good return on your capital in the majority of cases," he added.Experts at the recent Homebuyer Show said that the most popular location in Egypt for investors is along the Red Sea coast.

Get Ready for Egypt Boom

As British property buyers fly overhead on their way to the shopping malls of Dubai, do they realise they’re gazing down on a land with much more natural appeal, lower entry-level prices and a five-hour flight time? There’s so much more to Egypt than British buyers assume.

Most Brits are yet to discover Egypt’s new resorts where five-star luxury coexists with historical treasures, gorgeous beaches and fantastic diving in the Red Sea.

Egypt’s north-coast resorts along the Mediterranean stretch from Alexandria in the east to Libya in the west. Most buyers look between Alexandria and El Alamein. Another resort getting new attention is Ain Soukhna. On the Gulf of Suez and just 90 minutes’ drive from Cairo, it is a popular weekend retreat for Cairenes, and so offers potential for buy-to-let. With 60 kilometres of beaches, it has been largely ignored by non-Egyptians, but that may be about to change.
Across the Red Sea, Sharm el-Sheikh on the southern tip of Sinai, is now a firm favourite. It feels like a western Mediterranean resort and is the most expensive of the coastal destinations.

Back on the eastern coast, the ‘Red Sea Riviera’ is hundreds of miles of unspoilt desert coastline dotted with a few upmarket resorts. For starters there is El Gouna, built in a Nubian style with pastel-coloured domes and arches. As well as the seductively named Mangroovy Beach, the marina there is formed of a maze of canals and waterfront homes joined by stone bridges.

Further south is Hurghada, a resort traditionally popular with scuba divers. It attracts a young-ish crowd and is filled with après-scuba nightspots, cheap bazaars and internet cafes.

Beyond Hurghada is Safaga – quieter, less expensive, though also a major diving and windsurfing spot. Safaga is a good base for sightseeing, especially Luxor. Further south still is Marsa Alam, with its own airport. Not long ago a fishing village, many pundits tip as the new Sharm. Cheaper than Hurghada, it has many of Hurghada’s positives – reefs, palm trees, great beaches – but with fewer crowds.

Capital growth has been slow to kick off in Egypt, with static prices until late 2005. With so much new-build going up, the market is gearing up for a busy time and resale bargains could be on their way.

Also bear in mind that Egypt’s property registry is out of date so check that the land your property is on is registered. Older property should already be registered but getting hold of title deeds in Egypt can take time and even prove impossible. Property is bought freehold in Egypt, except for in Sinai, which includes Sharm el Sheikh, where you buy with a 99-year leasehold. Reports A Place In The Sun Live