Once the centre of the European property and holiday home market it seems as though Spain is going though a very difficult time at the moment. Rising debt, rising unemployment and a whole host of issues in the building industry have come together to kill the property market stone dead, but are things really as bad as they sound?

The thread brings a few interesting points into the equation, not least the fact that there are thousands of unsold properties in the region. This has led to problems in the estate agency industry with more businesses than ever closing their doors, thereby reducing the potential sales teams when the market picks up. The Spanish government are also reported to have increased the country’s debt to over £300 billion, a move which will have an impact upon government spending in the immediate future.

On a more upbeat note there are a few posters suggesting that a number of developments are up for sale at a fraction of the original selling prices and there does seem to be some interest. However, the Spanish property market seems to be making a bad name for itself at the moment with many investors being left with partly finished properties as substantial numbers of construction companies hit financial trouble – in line with the sector in the UK.

There is a mixed feeling as to whether the Spanish property market has bottomed out but it would seem unlikely we will see any major recovery until the European and Worldwide economies start to improve.

Summary

Like so many property markets around the world Spain is struggling to recapture the heydays of years gone by. Once the only market which British holiday makers and property investors were prepared to look at it seems that the emergence of other markets in Europe, together with the ongoing credit crunch, has brought the Spanish property market to a halt. There are also concerns that the growing number of unfinished developments will see future investors showing extra caution at what is being seen by some as a throwback to the earlier days of the market when the property sector was dogged by unfinished properties and bad investment advice.

The thousands of unsold properties and the dying estate agency sector is a major concern for investors now and in the short term. There were a number of comments on the post about property developments being sold for a fraction of the original price in order to bring in funds as well as a number of construction companies going into administration and bankruptcy. Interestingly we may well be seeing the ‘panic selling’ scenario which is often the first stage of a recovery and could mark the bottom of the market – or near bottom.

Like so many investment markets it is often the time to look again when EVERYBODY is saying the market has further to fall. How many times have we seen property markets fall just as EVERYBODY is saying it is time to buy?

Spain will always be a very important market to the UK ex-pat community and while the currency exchange rate is not helping in the short term there is no doubt that some investors are on the prowl for value investments at distressed prices. Spain is an interesting market and one worth keeping a very close eye upon.

Read the full thread on the current state of the Spanish property market

Interesting area, very buoyant at the moment, but do you really know all about the property market in Dubai?

To say this is an interesting post is an understatement, it sets off as a normal run of the mill pros and cons post but suddenly all of the hidden elements of the Dubai property market come into play and it maybe does not look as straight forward as you might have thought.

It is pointed out on a number of occasions that Dubai has been, and continues to be, one of the few safe havens in the property market at the moment. The area is on the up, oil revenues are flying high and businesses are being attracted to the area in droves bringing with them more and more personnel. But is the property market getting a little over heated? Is it due a correction?

The general consensus seems to be that construction is currently a little ahead of demand and at some stage price rises will start to slow down. However, when you also consider the new companies looking for exposure to the area (US giant Halliburton was mentioned) and the fact that you can affectively buy a visa with your property there is a feeling that demand is not about to start slipping at the moment.

On a more basic level it seems as thought the laws which govern the property market, tenant’s rights, etc, are not as clear as they should be and could see the number of rental disputes increase unless this is addressed.

Summary

While Dubai has been one of the darlings of the property market for some time there still seems to be a level of demand currently not seen any where in the world today. The tax regime is very attractive to investors / those who want to move to the area and it seems as though more large corporates are eyeing up a base in Dubai. This has all led to a massive influx of foreign money and a seemingly endless demand for property in the area, even though the property market is fair from cheap.

However, one of the more worrying elements of Dubai is the fact that the laws which govern the property market are fairly vague and open to interpretation in many areas, something which has seen a number of rental disputes of late. There is also an interesting observation about the life of a property in Dubai and the claim that it is only 25 years due to the extreme weather conditions. While this is not something which seems to have been covered in many property sales brochures it may be something to investigate further.

Dubai, like many other areas of the middle east, is riding high on the crest of the oil wave at the moment but even prior to the hike in the oil price it had been attracting growing demand. When you throw in the tourist market in Dubai and the growing number of visitors there is plenty to be positive about in the short term. Whether prices have moved ahead a little too quickly is a different matter although some are looking for a small short term correction as a possible buying opportunity.

Read the full thread on Investment in Dubai.

IMPORTANT UPDATE: Please note this law has moved on. Please see comments.

Not a very nice headline for those looking to buy property in Turkey but a true one never the less with news that the highest court in the land has suspended property sales to foreign nationals and foreign companies. This is a very interesting thread which shows how divided the property investment market is, some suggesting that the new laws will be introduced in a matter of days and others not prepared to enter into any agreements until the new laws have been passed. As with any investment market, confusion is the worst possible scenario leaving the situation open to rumours and counter rumours which are not helpful.

The thread itself reads like a timeline from the moment the law was passed and the government were given a three month period to introduce new laws, to the time when suspension of property sales to foreign nationals and foreign companies was suspended. There is also a very interesting comment from someone in the Turkish property market suggesting that the country has a history of changing property laws at a moments notice and causing widespread panic only to rectify the problem at a later date.

Many posters are looking at ways to get around the ban on non-Turkish nationals buying property but the market does actually seem to have come to a halt. There appears to be some pent up demand which should kick in when the laws are finally changed, but this has the potential to affect the property market for some time with investors now wary of what the authorities may do in the future.

Summary

In order for any property market to prosper and grow there needs to be a degree of stability, something which seems to be sadly missing in the Turkish market at the moment. A number of changes in property laws over the past few years have seen many investors take fright, concerned at what other changes the authorities may make in the future. When you consider that foreign investment in the country is vital this has potential ramifications for all areas of the Turkish economy. For this reason alone it seems inevitable that the government will need to address these problems as soon as possible and create a more workable framework.

So how will this ‘short term’ problem affect the overall Turkish property market?

There is no doubt that the problems have hit sentiment amongst foreign investor with many now fearing for the future security of their investments. It is this nagging doubt that this is not the last of the changes which will be at the forefront of many minds for some time to come.

While there is no mention of how property prices have been affected by the freeze of foreign property ownership there is no doubt that it will have affected prices. Will there be some short term attractive properties for the brave, as and when the new laws come in, or will the markets suddenly return to levels seen before the ban?

The ever increasing tourist market, with UK holiday makers very prominent in the area, will add some support to the future property market but sudden changes in the rules are not helpful for property investors.

Read more about foreign property investors in Turkey

Every so often we see a few posts which offer a different angle and approach to the norm, this is one of those posts which brings together a mass of information, views and reviews. The original poster has asked forum members to forecast the price per square foot in 2010 for property in Dubai Sports City, Jumeirah Village and another 4 locations in and around the same area. The post has received some very interesting comments and views which show how opinions are so very different between different people – similar to an ‘is the glass half full or half empty’ scenario.

While there have been many comments and forecasts as to what the price of property will be in the areas mentioned, some have gone further and actually given a break down of their reasons and analysis. The basis of the cost structure in the market has also been covered in great detail with many highlighting the fact that developers are starting to factor in rises for construction costs and passing these on to buyers.

There is a very healthy mix of positive and negative views and predictions, and while the truth may be somewhere in between, they are very much food for thought. The thread has also highlighted what investors believe to be the better of the regions mentioned and why they feel this way, with others taking the contrary view and looking at specific markets which are due a ‘catch up’ period. It is advisable to read the majority of the posts to get a balanced opinion, but there is certainly enough information and comment to keep readers busy for some time.

Summary

If we all had a crystal ball wouldn’t life be so much easier?

As we touched on above this thread has provoked a large response from those in the forum with many more than willing to come forward with their predictions for property prices in 2010 and their reasons. Even though it is near impossible to predict what prices will be 1 year’s time let alone 2 years, there are some very sound and interesting comments.

However, perhaps the more striking characteristics of this thread is the changing views of those who may have posted upon creation back in April and have reposted some weeks or months later, and those who have joined the thread late. Opinions are changing as the worldwide and local economies change and this is being reflected in the not only the price predictions but comments for the future direction of the markets.

There seems to be a growing consensus that short to medium term there is good growth left in these markets but as the supply / demand ratio starts to level off prices may well start to slow. The region is a boom time at the moment with new ventures being announced on a regular basis and many investors heading for what some are seeing as safe havens at the moment.

In summary there is some very useful information, views and comments on this thread and it seems to have caught the imagination of the masses. While there is no consensus on prices for 2010 this is not unexpected as this is what makes a market.

Read the full thread about the future of property prices in Dubai.

Have you made a profit on your Spanish investment? Are you looking to sell up and move? What is your CGT position?

Even though this thread was added back in September 2006 it offers a very interesting timeline with regards to Spanish tax laws and in particular the complicated issue of capital gains tax if you are looking to cash in an investment.

The initial comments in 2006 seem to have alarmed many with the original poster citing the fact they had been advised they would need to pay capital gains tax of 35% on the value of their property. It is unclear as to whether the poster thought this was 35% of the total value, or just 35% of the profit, but it has opened up a useful debate on overseas taxation issues.

In 2006 the capital gains tax rate in Spain for non-residents was 35%, with 5% of the sale proceeds being held by the authorities immediately upon completion of a sale to stop sellers leaving the country without paying any tax due. While the headline figure of 35% has alarmed many, at worst it is only 35% of the actual profit on the investment – so if you bought a home for £100,000 and sold for £200,000 your liability would be 35% of the £100,000. But this is not the end of the story….

You are also able to add the cost of any investment into the property, e.g. you may have had an extension built or work on some of the rooms (assuming that you have receipts). This will further increase your cost figure and reduce your property cost. After calculating your CGT liability you may have to make an additional payment or if you have no gain you will then be able to claim back the 5% deducted at source. As the thread progresses the law has been updated to show a revised CGT rate of just 18% with only 3% deducted at source.

Summary

If you are investing in foreign lands you need to know the tax situation and what you may have to pay when you sell your property. While tax rates do vary across Europe, the EU is looking to move to a more consensus figure although there is some resistance and this may take some time to conclude.

This post not only acts as a useful thought provoking topic for those with investments in Spain (and other areas of the world) but it also shows how the Spanish tax laws have changed over the years. The post was originally added back in 2006 and has been updated by some of those who responded in the early days. Taxation can be a difficult subject for those who have not investigated this area of finance before and mistakes and misconceptions are common place.

Over the years the internet has taught people how to cut costs and adviser fees but there are some areas where it is very dangerous to cut corners. Taxation is one area where a simple error or miscalculation can literally cost you thousands of pounds and possibly put you in trouble with the authorities. There was a throw away remark about ‘doing a runner’ from Spain after selling the property in question but this would be a very bad idea.

It is vital to ensure that you are fully aware of the tax laws in the area in which you hold or a looking to buy property because there can be some nasty surprises unless you are prepared. Professional advice on the matter may cost you a fair amount of money, but at the end of the day you really have little choice if you want to do things correctly.

Read the full discussion thread on CGT in Spain.

Are you a DIY person or do you like assistance on site?

This is just one of the many options discussed on this thread which goes back to December 2007 but is still going very strong. It brings to the table the concept of buying a property within a resort community where services charge are payable and help and assistance is on call 24 hours a day, 7 days a week, as oppose to ‘going it alone’. As you might expect the idea of paying for often simple services has prompted a number of very different views and comments!

In simple terms the thread seems to be split between those who want to buy an investment overseas (Egypt is the example in the thread) where everything they will ever need is catered for, and those who prefer to go it alone and buy away from the growing resort communities. There are obvious pros and cons for both but a lot of it seems to come down to an understanding of the language, local community and confidence in the investor’s ability to actually get simple things done such as plumbing fixes, etc.

There is also an interesting angle from one of the posters which suggests that the resort community feel and the fact services and assistance is available on site will actually increase the attractions and ultimately the value of a property. The growing clamour for overseas property homes has seen many relatively inexperienced investors purchase property away from their domestic markets with little real understanding of the local culture and way of life. These are the investors who may well pay a little over the odds for a resort based property, but then there are those who are more than happy to look after themselves and like a challenge!

Summary

Resort or no resort that is the question……….

This post brings a number of interesting factors to the investment table and has actually split the investment community between those who want services and assistance to hand and those who are confident enough to go it alone. There is ample input from both camps and this makes for a very interesting and information thread.

One factor which stands out from the thread is the fact that a growing number of investors are looking at overseas property with little knowledge of how the process works. These are the investors who would probably benefit more from a resort community arrangement where assistance is there at any time of the day or night. This helps to build up a trust factor between the service providers and the home owners, to the benefit of all in the resort.

The fact that you are likely to pay a little more in initial cost and service charges for a resort community venue seems to pale into insignificance for many investors who would rather have that added security at a reasonable cost.

Those who are more aware of how the local customs and culture works, where ever they may be (Egypt is the area mentioned in this post), are able to go it alone and choose from a wider spread of potential investments. There is the opportunity to shave a little off the cost of the property by moving off the beaten track but there are obvious risks. Resort communities tend to attract an awful lot of expats and can be a useful way for new investors to become more integrated into life in the area. The fact people are willing to pay a little extra for a resort community property also reflects the value of support and assistance.

Read the full thread about resort communities in Egypt.

Is the French property market dying a slow painful death? Or is it so fragmented that there are still opportunities for the brave? This thread was originally posted back in September 2007 but just recently it has been revived with much discussion about the state of the French property market. There are a few very interesting points being made, not least the fact that more prominent areas such as Paris seem to have a different property environment and direction than those properties located in the smaller cities, towns and countryside.

Much is being made of the current economic meltdown in the US and the fact that the mortgage giants Fannie Mae and Freddie Mac are on the verge of going under in the US – companies which between them hold about half of the US total mortgage market. The feeling is that problems in the US are already impacting on property markets worldwide and things look set to get worse before they get better.

There is also a very useful recap of the French property boom for the period 2000-07, a time when many people enjoyed great gains and it was seemed easy to make money in the property market. However price movements in 2008 appear to vary widely across the country but on the whole French property prices are down between 10% and 30%, something which many forum members expect to get much worse in the coming months. The main concern of many is the stagnation of the market and the fact that buyers have disappeared and nobody is sure when they will return.

Summary

Those who follow France closely will be aware that the country is the most popular tourist attraction in Europe attracting literally millions of visitors a year. As tourism and accessibility are two main factors of any property market, France scores very highly on both of these points and these are two good reasons why French property has done so well over the last six or seven years.

However, with worldwide economy under great pressure there has been an inevitable reduction in tourist numbers (something which will get worse before it gets better) and money is becoming tighter across Europe and the world. The English holiday home market is also suffering with less Brits looking to France for a second home, partly because of funding issues, the market and also an array of property scams which have made investors very cautious.

While the French property market has some similarities with the UK market, in that Paris and London have their own property environments very different from those smaller cities, towns and villages, Paris seems to have held up a little better than London at the moment. However, with property buyers now affectively on strike, massive discounts available for the brave, the short term outlook is not good for the overall French property market.

One forum member mentioned the need for ‘capitulation’ in the property market before the long term growth pattern can be resumed. This is a very interesting observation and one which is common place in the stock markets of the world in times of trouble.

Read the full thread about buying property in France.

Claims of 30% gains on land within 3 months, people buying online without viewing their investments and suggestions that people are ramping their investments on the thread – this group of posts has it all!

This thread was originally started back in February this year with a suggestion that land investments in Brazil were doing very well and the original poster had seen growth of 30% on a land investment in just 3 months. This claim has prompted an array of comments from ‘Well done’ to ‘We do not believe it’ and everything in between, but it has opened up a number of interesting debates.

One of the more bizarre claims is that people are buying Brazilian property online without even viewing the assets in question, a claim which has rung alarm bells with many on the thread. However, there are a number of posters who suggest there is nothing wrong with this if you are able to find a trustworthy agent on the ground. The opinion from those who claim to have hands on experience of the Brazilian property market vary widely with some claiming that the market is very buoyant and others suggesting that the price rises posted on the thread are a little out of synch with the market as a whole.

Interestingly towards the end of the thread a number of posters have suggested that while Brazilian property has done very well of late, there are risks to any emerging market. Past performance of the property market does not mean it will continue forever.

Summary

While there is no doubt that the economic environment and investment potential for Brazil has increased dramatically over the last decade, this is still an emerging economy which investors should be treating with care. Historically the country has been heavily dependent on the US for economic prosperity and while the balance has changed of late (with more overseas investment than ever before) the country is still very closely linked to the US economy.

As is now common knowledge, the US economy is in a state of turmoil with credit lines disappearing fast and some of the country’s oldest companies in serious financial trouble. The government has to endure expensive bailouts for troubled banks and possibly Fannie Mae and Freddie Mac – something which is sure to impact upon the short to medium term performance of the US economy. As the US economy stalls this is sure to have a knock on affect to countries in the region and while the impact may not be as large as in the past, this is sure to knock the property market in Brazil.

One alarming point from this thread is the suggestion that some investors are buying assets in the country without visiting the area. This has the feel of a property bubble, one in which every investor thinks it is easy to make money, one which is probably waiting to burst!

Medium to longer term Brazil is set for sustained economic growth but the short term picture is a little less clear. Be wary of being sucked into the final stages of a property bubble without knowing what you are actually buying.

Read the full thread about the real estate market in brazil on the forum.

The central focus of this thread revolves around the question of a member who asked for advice on selling or holding on to his property at Jumeirah Beach Residence in Dubai Marina District. Different viewpoints have been given by some members about this.

Some members opted to hold on to the property since the location is a popular beach destination and other attractions near it pose as an excellent place for short-term rentals. However, they also mentioned that the ideal time to rent out the place would be between 1-3 years since prices are unstable because construction is yet to be completed. Aside from this, during the waiting period, a good assessment of trends in the property market can be done.

On the other hand, some members felt that selling the property at this time is a good option. This is based on observations regarding the demand and supply of properties within the Marina District.

There is a possibility that the supply may exceed the current need for properties by the year 2010. This, in turn, can result in a so-called “market bubble” bursting. Thus, other members have agreed that selling the real estate while its popular is ideal, but it still poses no guarantees.

Due to the great influx of villas and apartments located along the Dubai Marina District, questions regarding the strength of the local property market have been posted. It may seem that these properties are elegant and attractive in their own unique way, but more than how much the market can only absorb should be considered.

With numerous structures on the rise within the region, this may tip the scale to an oversupply. With this escalating circumstance, investors are then thinking twice about their transactions and commitments with the said projects.

Although the recent demand has caused more construction, the demarcation line between supply and demand still indicates the last say about Dubai Marina’s present situation and its future stand as an emerging market.

Learn more about sell-hold properties in the Dubai Forum.

This thread’s central theme revolves around the most desirable city to invest in Morocco. Most members gave their contribution on naming which city best suits their taste and interest. Members have based their opinion on Morocco’s business endeavors, transportation system, tourism and trade potential along with its culture, environment and nearby locations.

In addition to this, some members mentioned the fact that the government of Morocco has observed the country’s northern region is fast becoming under invested. This has come into alarming measures and has even triggered the government to bring great developments into this area. This is in order to serve as an excellent region for investment, economic growth, tourism, and leisure.

Moreover, in case one is considering to purchase a place in Morocco, this country’s economic status necessitates some deliberation. In reviewing Morocco’s current performance, it displays promising signs with regards to property investment. Moreover, major reforms have been implemented and have provided the country’s economy with positive results. This is by increasing the GDP in 2006 up to about 6.5 percent.

Furthermore, an analogous forecast is expected for Morocco within the coming years. With the country’s progress, foreign investment is truly encouraged. This would include investments on major developments. In addition to this, foreign direct investments are on the rise in Morocco.

Thus, the country is doing all it can to facilitate its trade and growth, especially with the United States and the EU. Finally, Morocco has launched financial reforms, which aim to improve credit availability, and this remains a vital aspect when investing on a property in the country.

In Morocco’s economy, the vital sector is its tourism component. With this, the government of Morocco is acute in promoting their country internationally. In order to bring this to completion, the Moroccan government has carefully made investments on infrastructures that are associated with tourism, thus making this its top priority.

In fact, Morocco’s “Azure Plan and Vision 2010″ aspire to further improve tourist numbers that visit Morocco. This is through investing in facilities, services, and transportation, which is considered as another advantage in the country’s property investment.

Visitor figures in Morocco have greatly increased by 43 percent during the first half of 2007. With this, the figure in itself is a promising standard for investors who are planning to take on Morocco.

At present, with the properties in Marrakech as its forefront, the property market in Morocco is quietly reaching its peak. As a matter of fact, Morocco’s property investment has been growing greatly over the past few years. In addition to this, the real estate market of the county has experienced a 75 percent increase since the year 2001.

Plus, European and Dubai developers are currently investing in the country. This is with Marrakech as their primary focus. Thus, Morocco’s luxury homes are currently flourishing in the property industry.

Read more about the most desirable investments in Morocco in the Morocco Forum.