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So what about looking for new areas of growth

Knowing in advance where the next large rises in property prices is likely to be is of course a skill that all would like to acquire who deal in property. In many ways it is like other investment markets, understanding how others are thinking and where large amounts of investment is likely to move in the near future, as well as the risks involved in each opportunity that you see.

Staying within the UK, this is not that difficult to see, as it is often the area around another area that has recently appreciated in price, so understanding what is happening now can allow you to see what is likely to happen next. Perfecting this skill involves practice and constantly playing the game of predicting growth and monitoring reality against your predictions so as to be able to fine tune your abilities.

Looking outside the UK, the USA is clearly the country where most are now starting to seriously look at, and some who have made money in Spain and other continental countries are now looking to get out while the prices are high and get into the USA while the best deals are available. Spotting opportunities in the USA is not difficult, but given its size, diversity of local laws, taxes and cultures, using the clubs services really pays dividends and most get property at under half of the price they had been expecting and willing to spend. English speaking, secure, fair laws, and pro British makes it a pleasure to own property in. 

The USA being such a large country, many times the size of Europe, predicting where the best buys can be made is not as simple as just looking at a few statistics, as you need to consider movement of people, changing demand, property available, land availability and the uses property can be put to. Florida is still the most popular buy for Brits in the USA, although not getting the largest returns. However clever buying in Florida can often save a very large percentage compared to following the herd to the marketing operations that sell over sized, overpriced new homes. With mortgages available and multi apartment properties within easy reach of anyone who has been on UK buy to let, the risks are lower than the UK, and the returns are currently considerably higher.

Spain will continue at least for a while to attract as many as are leaving or more, so prices should remain high at least for a while but with well over 100,000 people now having been effected by the land grab laws that allow Spanish developers to not only take your land but bill you for services and roads built over or next to it, it is not a safe place to invest, and the smarter investor is getting out now. Portugal owners have benefited considerably, and prices in Portugal are now quite a lot higher than for the same Spanish property nearby. Many think that as they have a property on a road or estate rather than a country villa that the land grab laws don't effect them, but even in completely built environments they are finding they can often be landed with bills for widening the street and putting in services to convert their quiet road into a through road to a new estate. Likewise some will say it only effects some areas of Spain but the number of areas have grown and all property in Spain should now in our view be considered a risk.

The  countries joining the EU offer many opportunities but some are less stable, then there is the language and legal systems to understand, and the question arises as to if we can time our purchase just right, too early and we have a property that is difficult to let and may have security problems and too late and we may not get the rise in price we are hoping for. Also can all these countries joining over a short time produce large rises in property in each or do we have to be far more accurate in our predictions as to which will increase the fastest. Perhaps these countries are best for those who have a lot of experience in overseas markets and understand the risks, but for some large profits will be achievable.

So what guidelines can we suggest for maximizing growth at this time

• Look at the USA, particularly if you want a non UK investment or you have a smaller amount to invest. The USA is without doubt where the smart money is starting to move at this time.
• If you have property in Spain look to selling it to reduce unacceptable risks.
• If you want to stay within the UK look around the areas that have high increases recently for areas that will catch up.
• Generally avoid very highly priced areas such as central London, as they are perhaps less secure and as a percentage have less chance of showing as large a rise.
• Try where you can to get a number of properties as opposed to one very large one unless a multi apartments units, this reduced risk of voids and also you are likely to get faster rental increases from a number than one larger one.
• Be with or ahead of the crowd, don't follow a year after the rest, or you will just buy too late, and yes it will still go up but far less spectacularly.
• Don't follow TV hype without fully checking it out, remember the programmes you are watching were recorded a long time before you saw it. 
• Avoid property that may be a bargain, but is not in demand unless you can see a way to create a demand for it.
• Look out for good buys, where you can get at a discount, these allow an immediate growth from day one.

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