Owning a second property is a good long-term prospect for any savvy investor who is working on future-proofing their finances, or simply wants somewhere lovely and warm to retire to in the next few years and investing in another property is not – believe it or not – something that only the wildly rich do. There are many benefits that come with owning a second home, including creating a family home away from home that you can visit each year, having a place to retire to in the future when you’re ready, and reaping financial benefits by renting it out when it is unoccupied – to name a few – and these benefits are largely why more and more people are choosing to purchase another home.
The window for purchasing a second home at an affordable price started to close in April 2015, but that is no cause for panic as there is still time – although it may be limited – to find yourself a second home at a reasonably good price in 2016. In this article we take a look at five countries who had the most promising property markets in 2015, all of which should continue to have your attention in this New Year, and discuss why you should consider investing in property in one of them this year.
Argentina, South America
Although Argentina’s economic activity has been rocky, to say the least, according to an article written for the Huffington Post by Kathleen Peddicord, it is no reason to avoid investing in your second home in the beautiful country. During 2015 there was – and still is – another collapse upon the country, meaning now is the time to invest. And, although the country has a manic economy, you shouldn’t let it scare you off either – as with big downs come big ups. There are many positives about spending your holidays or retirement in Argentina, including the fact that life in this lively place is never dull. It is also home to beautiful landscapes, a fast-growing wine region, and for those who love food, Argentina is known for its famously delicious food. So, if you’re wondering where to start your property search, take a look at Buenos Aires. It has beautiful, classic-styled apartments that you find in very few corners of the world. There are also opportunities to invest in a vineyards (specifically in Mendoza).
Istanbul, Turkey
According to Kathleen Peddicord in her article for the Huffington Post, ‘Turkey’s property market wasn’t hit as hard as other around the world in 2008 and 2009’. With values in certain districts of Istanbul only dropping around 25%, even at the peak of the downturn. In just a year and a half Istanbul’s prices recovered with that rate of appreciation – about 10% – 15% per annum – continued on through 2014 and it is expect to carry on indefinitely. Now, you’re probably thinking ‘if the prices are growing at such a rate, how can buying a second home in Istanbul make sense financially?’, and it is because in comparison to other globe-standard cities, Istanbul’s real estate still remains a pretty reasonable bargain paying just $1 000 a square meter for middle-class housing, that (starting market price in 2015. The young population – half the population of Turkey is younger than 30 – are always looking for a place to live, which is the reason behind the continuing appreciation in property values, and what makes Turkey the ‘country of the future’, according to Kathleen. When it comes to buying your home in Turkey, it’s advisable to look at Istanbul instead of vacation properties located on the coast as the vacation markets – which are supported, mostly, by foreign buyers is less liquid than Istanbul’s local market. ‘The safest, simplest investment options in the city are pre-construction apartments. Getting in early on a new building means discounted pricing and the expectation of price increases over the two-to-three-year construction period,’ explains Kathleen.
Dominican Republic
As a popular international all-inclusive resort destination that attracts high volumes of tourists with its warm weather and sandy beaches, you wouldn’t think that the Dominican Republic would be a top Caribbean choice for foreign property investors. Kathleen explains in her article for the Huffington post that she likes the Dominican Republic’s property market in 2015 because ‘the island nation is attracting more and more foreigners, both full-time expats and retirees and part-time second-home-at-the-beach owners’ and because ‘property values are a tremendous bargain relative to the rest of the Caribbean’, meaning you could have your own slice of beachy-island paradise for a fraction of the price. A brand-new, one-bedroom apartment only a five-minute walk from the beach will set you back $100 000, give or take, and could be rented out for a decent amount.
Spain
With last year’s real estate purchases driven by expat buyers, prices in Spain were unstable in 2015 with a further drops in prices in parts, but that didn’t stop expat markets from firming up. There has not been very much construction taking place over the past six years, due to the real estate crisis, but there has been an increase in appreciation in expat markets. If you fancy buying your new home-away-from-home in Spain, Malaga is the place to buy. In the heart of Costa del Sol, the town centre has charm and a wide appeal. You’ll be looking at – give or take – around 2 000 Euros per square meter, which is a bargain.
Medellin, Colombia
If you’re interesting in great restaurants and café culture, amongst other things, buying your second home in Medellin, Colombia is a good option. Over the last six years the Medellin market has seen nothing but good appreciation – we’re talking as much as 10% every year – and is said to continue. As one of the most appealing places in the world to look for an apartment, it’s not surprising that, when you’re not occupying your second home while on holiday to Medellin, they provide owners with a great steady cash flow when rented out. Medellin is an appealing place to buy a second home for a number of reasons, including its temperate climate and first-world infrastructure, all of which contribute greatly to it being a fantastic place to settle down for retirement or visit year-after-year for holidays.
Ibtisaam is a business writer who is driven by company dynamics, CEO insights and creative outputs. Particularly interested in business and property development in the UAE, Ibtisaam is your go-to guy/lady for all your company-related queries.