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.