TOP FIVE TIPS FOR EMERGING MARKETS PROPERTY INVESTORS
Leading real estate marketplace compiles guide to investing in emerging
countries
MANILA, NOVEMBER 10, 2014: The world population is growing at a
rapid pace, adding about 150,000 people each day. By 2050 there will be a world
population of approximately nine billion people. The largest share of the
fast-growing world population is coming from emerging markets in: Africa, Asia,
Latin America and the Middle East.
At the same time, these regions
are driving global economic growth. The International Monetary Fund has
forecast that over the coming years, around 70 percent of world growth will
come from developing countries. With this trend comes a range of opportunities
for emerging market investors, as sectors such as construction and housing see
rapid expansion.
As interest in these regions
grows, leading property platform Lamudi
lists five tips for real estate investors looking to enter these markets.
1.Familiarize Yourself with Local Laws and Restrictions
Before investing in emerging real
estate markets, investors should gather accurate information about the laws and
restrictions that are specific to the country. Foreign investors face
restrictions on buying property in some emerging countries. In the Philippines,
for example, international buyers are prohibited from owning land but they can
purchase condominium units, so long as foreign ownership in a single project
does not exceed 40 percent. Make sure you check official government information
and get in touch with local lawyers, as well as regularly reading the news to
stay up to date on any developments.
2.Take a Long-term View
Take the time to watch the real
estate market and closely examine the long-term outlook before investing.
Within regions that are subject to volatility, it is especially important not
to rush into a final decision. Instead, try to take a long-term view of the
market outlook. Property investments are always long-term decisions that must
be well informed, but this is particularly true in emerging markets that are
highly perceptible to change. The best way to be prepared is to use
independent, verifiable sources that offer local and national information.
3.Find Local Partners
Finding a suitable lawyer,
translator, or certified local real estate broker who can be your contact on
the ground is necessary in order to navigate the local market. Choose people
who are experts in their field and have the local knowledge you need to be
successful in the market. This will save you time and money in the long run.
4.Build a Diverse Portfolio
There are constant price
fluctuations in property markets around the world, but emerging markets can be
particularly volatile. Therefore investors need to be flexible and able to
quickly adapt to the changes. Investing in a diverse range of property in
different regions and also different countries can help balance against these
fluctuations in the market. Adaptability is the key to long-term success.
5.Be Understanding of Cultural Differences
This applies to anyone looking to
do business in a country other than their own. If you are planning to visit the
country in which you are looking to invest, research local cultural practices
and customs before your arrival. Something as small as how to introduce
yourself in a business meeting can vary widely from country to country. In
Myanmar, for example, where business etiquette is informed by the prevalence of
Buddhism, traditions such as removing your shoes before entering a private home
are still commonplace. Being aware of these differences from the beginning will
help you to avoid any issues of miscommunication.
visit our website;
www.expertbroker168.com
Comments