Head east and beat the credit crunch.

Tue 21st Oct 2008

With concerns that the domestic property market is heading for free-fall savvy property investors are looking further afield for their bricks and mortar investments, and not necessarily at the traditional holiday home hot spots.

The credit crunch has had greatest impact in those areas that have recently enjoyed cheap credit and high levels of borrowing, such as in the UK & US. The slowdown in these markets has though eased the way for many emerging markets less affected by the crunch, such as in Central and Eastern Europe.

In the UK, property investors increasingly have to place deposits of up to 25% in order to secure good rates on properties that are still highly priced compared with other markets. With this equating to £60,000+ in many parts of the country, the alternative of owning a property outright for similar sums is looking increasingly attractive to many.

Looking around the properties listing on Redence this morning, the E100,000 investment that a 25% deposit on a London flat would require presents a number of opportunities to buy outright if you head further east.

2% of Brits investing in foreign property last year chose Turkish property with the country's reformist investment climate. The resort location of Bodrum in particular always proves popular where your E100k investment could see you the outright owner of anything ranging from a stunning 3 bedroom triplex with sea views to a highly appointed luxury poolside apartment.

The most popular eastern European country for UK investors is Bulgaria, accounting for 6% of UK property investments abroad in 2007. Considering that our quarter share in a London flat could be exchanged for full ownership of a charismatic “revival” style house in the popular resort of Burgas or a luxury apartment overlooking the stunning shoreline at sunny beach it is easy to understand why.

It's not just Brits heading there either though. Russian investors in particular have been continuing to invest heavily in Bulgaria, helping to protect it's property market from the troubles being experienced closer to home.