Property investors with their own liquidity will be in the strongest position in 2012 although they will face stark choices and be risk averse, predicts a leading real estate investment management firm.
Finance opportunities will remain limited next year, meaning investors should avoid falling into the category of real estate owners who get squeezed by the debt and equity shortages that are likely to prevail, adds the report by LaSalle Investment Management. Investors should also avoid over-heated emerging markets, where new construction is poorly disciplined, or where capital is flowing too freely.
According to LaSalle Investment Managements, key questions that investors should be asking themselves in 2012 are:
- When can investors anticipate stronger fundamentals and rent growth in the developed markets of the G-7?
- Do the growth engines of Asia, Latin America and other emerging markets compensate investors for the risks of developing, owning and operating real estate in these semi-transparent markets?
- Will the European Central Bank, the European Financial Stability Facility (EFSF) and the IMF be able to restore enough confidence in the European financial institutions to incite a healthy real estate lending market?
- How will the North American, Asia-Pacific and UK markets be affected by the turmoil in the Eurozone?
On investing in Europe, LaSalle Investment Management’s European strategist, Alistair Seaton, says: “The best opportunities in the Eurozone region in 2012 will be those that can take advantage of distress, provide space that meets the changing needs of occupiers, or a combination of both. Although the backdrop of weak economic growth will place little upward pressure on rents, supply generally remains constrained, which will help support them in certain locations. A sharp focus on the ability of assets to sustain their income generation will be crucial for core investors.”
On investing in North America, LaSalle Investment Management’s North American strategist, Bill Maher, says: “The recovery of the North American real estate markets will slow in 2012 and could even reverse in some sectors, as both regional and global economic growth falters. Investors will have to balance the conflicting trends of lower future growth and low interest rates. There will still be plenty of activity and opportunities but, in contrast to 2011, distress will be more of a driver of returns and growth in 2012. Over the long term, the dearth of construction in 2010-2015 could lead to above average rent growth in the second half of the decade.”
For details of investment properties for sale around the world visit the listings on Rightmove Overseas. One way to save money when investing in property anywhere in the world is to use a currency specialist when transferring your pounds into a foreign currency and vice versa, either to complete a purchase or make regular payments. For more information on this, contact Smart Currency Exchange.
To understand the full step-by-step process to buying property abroad, visit www.overseasguidescompany.com