Asian property markets look like they are still booming ahead. Among various regions, Southeast Asia has some of the most promising and strongest economies, thus making it the most ideal investment, especially when it comes to supporting a thriving and emerging property market. At present, the key question asked, which was particularly raised in this thread, is which region amongst Southeast Asian cities is the most ideal location to invest in.

Of course, the criteria for determining the best location entails more than promises of enormous potential for market appreciation and rental returns. One also needs to focus on the city’s fiscal policies, political environment, and the country’s economic growth including the city’s own progress.

Among the cities that had been mentioned by members in the forum, Singapore had been given the best support. It has emerged as the top choice among the participants in the forum. In fact, the support listed by the participants include the high property prices, a massive financial center, sound government policies, stable political environment, low crime rates, an influx of immigrants and young professionals, and the new integrated resorts that are coming up. In addition, Singapore is considered as the hedge fund capital of the world.

Thus, the runner-ups in this forum include the cities of Cebu in the Philippines, Kuala Lumpur of Malaysia, and Pattaya in Thailand.

Hence, Singapore properties are now in demand as much as ever. This is partly due to the ratification of the 2005 strata-titled properties, which allows foreigners from owning apartment units within a building without the need to obtain approval from Singaporean authorities. Hence, the old rule of buying apartments within 6-storey buildings or more no longer applies.

The old rule only applies when purchasing a condominium instead of an apartment. Property acquisition by foreigners or land-title properties in Singapore, however, still requires an approval from the Singapore Land Authority.

Yet, in spite of these, the overall purchasing of properties in Singapore has been much easier, both for local and international buyers due to the implementation of various leniencies on the property market. Hence, this had increased a demand that resulted to increasing property prices.

Supporting this property growth is the country’s continuously strengthening economy. In the last two years, there had been a 10.2% in crease in residential properties. This is true while property prices have seen a 15.8% growth since 2004. These prices had become apparent because the market has also increased. Thus, despite the growing prices, the people still continue to buy properties in Singapore.

More about South East Asian investments in the Buying Overseas Property Forum.

As posted in the forum, Brazil has been classified last April 2008 by “Standard and Poor’s” as a country with an investment rating of BBB. This is defined with its “Capacity to service and repay debt. Many find this satisfactory, but risks increase when conditions become adverse. Previously, Brazil was given the grade of BB, which was defined with it’s “Increasing uncertainty surrounding service and repayment of debt” and “debt carries an increasing degree of risk”.

Hence, Brazil’s new upgrade signifies that there is a stable confidence of the foreign investors in the Brazilian economy, which in turn had created a burgeoning middle class and consequently a greater demand for residential properties. Amidst the fact that expenses of foreigners traveling to Brazil have also increased despite real appreciation, which could be an indication of moving away from the all-inclusive packaged traveler, there is also an increase in second residency tourists that are more likely to purchase a house and spend on the local economy. All these are good indicators for the property market, making it an ideal time for investors to buy into the Brazilian market.

Moreover, the upgrade was also supported by a news article released last April by the Central Bank that indicates transaction accounts having shown deficit but experiencing an offset due to the capital account inflows. FDI net inflows show net positive balances amounting to $3.9 billion. Net positive results for stocks have reached $5.9 billion. Net positive results for bonds are at $230 million, and international reserves are estimated at $195.8 billion.

However, not all members in the forum are confident in the upgrade. This is due to the high interest rate of 12.25% per annum and inflation. In fact, this can be seen in the high increase of prices, especially in flour, beans, and other staple food items.

Such doubts about the status of Brazil were also supported by a few members who have cited the phenomenal performance of three of the BRICS countries–Russia, India, and China. These three countries continue to grow 2% faster than what was predicted, thus collectively amounting to 16% of the global GDP. Although Brazil was mentioned to have seen an increase in its growth rate in the past six months, the status is considered quite unreliable since detractors claim that optimistic predictions on BRIC economies actually ignore major hurdles in their development. This would include future political instability and rampant corruption as well as worn-out and non-updated infrastructure.

Amidst the differing views presented in this forum, several members contended that Brazil is relatively doing well in spite of its increased interest rates and increased food prices.

Hence, after “Standard and Poor’s” upgrade on Brazil’s investment rating to a “BBB” last April, another private independent rating service delivered Brazil’s credit rating in less than a month. Fitch Ratings is the second large rating agency to have upgraded Brazil’s credit rating. In fact, they have raised it from a BB- to a BB+.

According to the rating agency, this improvement in Brazil’s credit rating is an indication of the dramatic improvement in the country’s external and public sector balance sheet as well as the dedication of the government in keeping a lowered inflation rate and a budget surplus that would dispel concerns on medium-term fiscal growth.

The recognition given by these two major credit agencies is due to Brazil’s solid fiscal position, thus proving that it has the capacity to grow with stability. The announcement of this upgrade in the country’s investment rating would further increase the number of foreigners who would buy Brazilian securities.

Thus, upon the announcement of Fitch’s upgrade, the Real exchange value against the US Dollar has reached 1.639 per dollar.

Read more about the awarded investment rating of Brazil in the Brazil Forum.

The main concern raised in this thread is the escalating issue of “unhappy migrant workers” in the Gulf region along with the severity of this issue in Dubai. These hard laborers are faced with somewhat debasing living conditions and wages despite the vital role that they play in supporting the region’s economic growth through building a lot of mansions and skyscrapers.

Although it is a reality in Dubai, most members do not feel that this issue would not have any significant impact on Dubai’s economic progress. There will always be 10000 workers more to replace the 1000 who will leave according to some members. Furthermore, the Dubai government will certainly take steps in keeping such issues from escalating so as not to adversely affect the country’s economy. One specific example that has been cited by members is the building of low cost housing in order to cool down the emirate’s property boom.

Nonetheless, several members feel that the Dubai government should take steps in providing these migrant workers with decent working and living conditions as well as wages that they rightfully deserve. This is despite the reality that there is a surplus of workers that could replace the “unhappy” ones. Thus, as the city is largely dependent on migrant workers, Dubai should be a forerunner in responding to issues such as these as well as to their rights as a whole.

Hence, Dubai and the entire region itself have been criticized for years for its labor standards. In fact, most of its workers speak of systematic exploitation. The recent riot of restive workers last 2007 and the negative press that it created in the city, amidst its presentation as a world-class business and tourist hub, has given embarrassment to its government. These workers were faced with high recruitment fees that make it difficult for them, apart from the long work hours, the minimum wage that is incompatible with the emirate’s market economy, and the withholding of their salaries in order to keep them from leaving. Moreover, conditions such as confiscation of passports, the absence of medical insurance, and cramped employer-provided houses located in the outskirts of the city lacking in facilities for the most basic needs have become prevalent in Dubai.

Certain intervening steps have been taken in order to address these concerns beginning with the Labor Ministry’s involvement. This is to ensure that regulations are properly observed, especially in construction sites and living quarters. Authorities have also mandated companies that their workers’ wages should be placed in bank accounts that they will monitor and check from time to time. Moreover, a draft labor law will soon be presented to the cabinet, thus allowing provisions for the government to reject applications from importing companies who have records of violations. This law also enables the government to increase its fines for companies who desist making improvements and to shut down companies who are repeat offenders.

Despite these changes, such conditions are still yet to be seen and felt. The government’s greatest challenge, at present, is the implementation of these reforms along with other obstacles such as persuading companies to make improvements while maintaining the sector’s phenomenal growth, which is estimated to be worth billions of dollars.

Moreover, soaring land prices have also hindered the construction of labor camps that have wider spaces and better hygienic conditions. In addition, though workers can now sue their employers in court if they miss their wages, rulings for these cases seldom result in payment.

There are already some efforts from the private sector for these so-called improvements. However small it may be, it is something that may become big later on. Thus, The Dubai Industrial City, as part of its supportive services, will be featuring 7 residential complexes that will provide affordable and high-standard accommodations for workers and their supervisors. Upon its completion in 2008, these labor cities will cover an area of 14 million square feet and accommodate 87,500 beds. Albeit these labor cities are commercial developments, such steps could result in a better involvement of the government along with the private sector into the plight of these workers.

More information about the burdens of constructions workers in Dubai in the Dubai Forum.

Foreigners are given free title holder ownership for properties in Dubai. This is actually one of the driving forces in the emirate’s thriving property market. However, much confusion exists when it comes to the procedures for land titleship and ownership, most particularly when it comes to resale properties. The thread was an attempt by members to shed some light on this confusing system, which is based mostly on the experience of veteran members.

An informal step-wise instruction for resale procedures was offered at the discussion wherein it entailed the following steps:

1. buyer1 buys direct from the developer
2. buyer1 decides to re-sell property at a premium price
3. buyer1 sells directly or through an agent
4. Buyer1 and buyer2 negotiate price, terms, conditions, etc.
5. buyer1 and buyer2 draw a Memorandum of Understanding drafted by a lawyer - stating the agreed price, price validity, payment details, terms and conditions, project and ownership details, time to transfer, penalty Claus, etc
6. both parties should sign the MOU and buyer2 should seal the contract with buyer1 through a token/deposit amount, which is the amount and method agreed upon by the two parties
7. buyer1 will make an appointment with the developer regarding transfer of ownership
8. before actual transfer, buyer2 will handover payment check plus premium check in whatever mode stated in the agreement
9. both parties will sign transfer and assign some forms inside the developer’s office
10. no transfer fees should be paid to the developer in this procedure
11. If payment of property were at 20% to 30%, this obliges the developer to take buyer2 to the Land Department so as to change title deed and make the transfer official.

Albeit an illustration of a step-by-step procedure, most members felt that the government has yet to implement clearer rules and regulations on reselling properties. In view of this confusing procedure, most members advised the use of a reputable lawyer and a professional agent who will stand in the middle of each transaction so as to ensure that each party abides by the MOU or MOA.

Thus, as a rule of thumb, when purchasing a property in Dubai, every property transaction should pass through the original developer. This is to ensure that a buyer actually owns what is being sold. This is a common step which buyers and sellers should practice due to the fact that it serves to protect the buyer from any dispute on the ownership of the property being bought. Plus, this is important because Dubai has yet to provide an independent registry of freehold titles which can be available for inspection.

For any dispute with regards to the ownership, buyers can only take their case to court, which is really a time-consuming process. In addition, there is no guarantee that the ruling of the court will be in their favor. In fact, the transaction can be declared void.

Therefore, practicing due diligence and involving the original developer is absolutely necessary so as to safeguard any transaction until the publication of a comprehensive Dubai Property Law is mandated.

Learn more about the resale procedures in the Dubai forum.

Brazil’s stable economic and political conditions are contributing factors in the country’s current emerging property market. This is along with the predicted exceptional returns in the next ten years. For foreign investors who would like to take advantage of the incredible potential of Brazil’s property market, finalizing the location for an investment is what makes the difference in this lucrative business.

Members who responded in this forum have agreed that there are different metrics for determining the perfect location for an investment in Brazil. Foremost of these would be the motivation for investing as well as the amount that the investor is willing to lay out. These two aspects can help determine the type of property that would be most suitable for the needs of the investor. This would then go hand in hand with the market base together with the location.

Each location can provide you with different reasons for investing, such as the area’s infrastructure, the climate, the locals and the neighborhood, and the price of these properties. Most importantly, when choosing a location, one should look at the tourist figure within the area. This is to ensure capital appreciation and high demand of the investment, which can be appropriate for both second homes and letting properties.

With the specific locations that members have cited, the most common denominator between these locations is the fact that they are all tourist-frequented areas. Among the specific areas given were Natal, Fortaleza, Rio Grande do Norte, Ceara, Bahia, Cumbuco, and Pipa—all of which are either established tourist destinations or have been growing increasingly popular with tourists.

Hence, Brazil ranks as one of the top countries in the property investment league wherein investment properties in the country are easily snapped up by investors who are taking advantage of the incredible potential of Brazil’s property market. With the country’s favorable political environment and stable economy together with the relatively lower property rates in the country, Brazil will continue to attract investors. Aside from this, it will consequently bring with it the so-called property boom that has long been predicted for Brazil.

Property investments in Brazil are pouring into the country’s most frequented tourist locations. The areas of Natal, Fortaleza, and Rio Grande do Norte are long established tourist destinations. The influx of tourists has created a steady demand for rental accommodations.

The coast northeast of Natal is currently receiving much attention from tourists. One village in this area that has received such attention is Praia da Pipa in Rio Grande do Norte. It is about an hour south of Natal, along the district of Tibau do Sol. Thus, Pipa’s attraction lies in its great waves, which was discovered by surfers as early as the 80’s. Its miles of quiet beaches that offer excellent facilities for various outdoor and water activities as well as its lively nightlife was voted as the best in northeast Brazil.

With property prices being relatively inexpensive and having a stable rental market, the charming region of Brazil holds a tremendous potential for those who would view it as a new tourist and property investment hotspot.

More about the economy of Brazil in the Brazil forum.

With the current worldwide property boom along with every shrewd investor coveting to partake in the lucrative business of investing in buy-to-let properties, the most central questions should revolve around the location and the type of property that would provide the most rental yield and capital appreciation.

In the thread, most members have determined that Berlin has a market that is ripe for rental investments. One of the supporting reasons members have given would be the existence of a strong rental culture in Germany. Economic factors such as the country’s low rate of home ownership, the expensive property prices, and the limited access to mortgage products have given rise to this rental culture.

Panama places second when it comes to the number of members sighting this country as the most excellent location for rental investments. The country’s current low vacancy rate is brought about by the country’s thriving tourism industry where in the influx of tourists paved the way for the profitability of the country’s five-star hotels. Thus, these hotels are even fully booked most of the time. Aside from this, the current trend in the Panamanian rental market is the lease of fully-furnished apartments to tourists.

On the other hand, in terms of determining the best buy-to-let properties, most members have mentioned developments that were designed as resorts or properties that were within locations with a strong tourism industry. Some members even cited Morocco, the Canary Islands, and the Cape Verde Islands. However, a few members claimed that rental investments are best made with long-term rental markets and not the seasonal or short-term markets that are usually being featured by these tourist hotspots.

What is most central, however, is the fact that research and proper information about a desired property is essential before you even attempt to invest in these properties. A well-explored market can surely produce lucrative profits for such investments.

Whilst many property markets all over Europe are experiencing a halt and a leveling-off in their house price growth, investors have turned towards the eastern region of the continent - searching not only for emerging markets but for properties that are being sold at a relatively inexpensive price.

Of all the markets in Eastern Europe, Germany is the top choice of most analysts. In fact, it is deemed as an ideal location for property investment. This is due to its cheap house rates, which are in absolute terms and high rental yields. This goes even with the combination of the political stability and recovering economy of the country. At present, properties in Germany’s major cities can yield about 8% up to 10% at a time.

Germany is one of the few economically advanced countries in the world that has not experienced a house pricing boom in the last decade. The popularity of the country’s property market in the 1990’s, a period of sluggish economic growth in 2001, and the bursting of the Dot Com stock market bubble in the same year recorded unemployment rates. Moreover, the sudden bankruptcies of many citizens due to the housing market crash add up to all the factors that contributed to the stagnation of housing prices in the last ten years.

While market analysts predict an increase in housing prices in the future, a property market boom in Germany may not happen. This is due to the local markets’ performance, which currently does not show a leveled output. The market, however, shows much opportunity for investments in the rental market. Germany’s very low home ownership rate of 43% is likely to increase in the future. Rents are likely to rise as published housing companies, which have kept rental rates artificially low, are being forced by the government to sell their properties. In time, an impending shortage in housing developments will pose a major dilemma and, in turn, will subsequently raise the rental rates. Thus, it is the property boom that is being projected as an unlikely event until the next five years.

Find out more about the investment opportunities in Panama and Germany in the buying overseas property forum.