WHY INVEST IN EUROPE
The European Union remains the world’s largest economy, with over 500 million consumers.
Countries and regions falling into this category for investment are mainly:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, France, Germany, Greece, Italy, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
For a full alphabetical list here.
A well-diversified portfolio should span geographies as well as sectors of the market and European equity should play an important role in all investing strategies. Its widely known that Europe is currently cheap and investors are not blind to its profitability and stability. So far this year investors have moved $13.7 billion into European funds.
The first five countries recommended by Forbes of the 10 best countries for your investment are all European with Hungary also sitting in ninth place. 1 Portugal, 2 Spain, 3 Denmark, 4 Ireland and 5 Germany.
Its location is geographically the closest European country to America and this makes it a certain attraction. Its weather, safety and quality of life, modern infrastructure, human resources, business opportunities, innovation & technology along with over 42% speaking two languages, especially English with 23% speaking three languages makes this a recipe for heavy foreign investment. In real estate, the trend is to renovate historic buildings and rent for short stays. With government, relaxed rules it has now opened a market for long-term rentals too. Lisbon has been awarded with – Europe’s Best Tourist Destination, Cruise Destination and City Break at the World Travel Awards- and while it’s one of the world’s top 10 cities for corporate events, it’s still overlooked as one of Europe’s must-see capitals. Tourism and cruise arrival tourism especially is on the up as it remains a low-cost destination.
With its potential for price growth, the country’s economic recovery and the Golden visa rule that allows investors and their families to travel within the Schengen area without visas continues to attract foreign interest. Its low prices post-recession, economic recovery and strong tourism makes it an opportunistic market. It has easy access to credit and since 2013, non-resident investors that acquire real estate for a value of, at least, €500.000 are eligible to obtain a residency by investment which allows the investor and its family to travel within the Schengen area without visas. At the same time, it is possible to stay within the Spanish territory if desired and there is no minimum stay necessary to maintain the residency. Spain has a list of renown investors including Bill Gates, George Soros and Goldman Sachs. The Middle East, UAE have invested heavily in banking and petroleum and have direct flights with Emirates or Qatar Airways. The fact that these recognised brands are investing in the country creates a trend that is being followed by investors worldwide.
It is one of the easiest places in the world to do business according to the World Bank. Set up a business in one day and have residence and work permits issued in 5 weeks. With bribery, practically unknown, Denmark has earned top rankings in the international transparency index for years. It has a lucrative market access to the entire European Union and next day delivery reach of 500 million of the wealthiest consumers in the world. Furthermore, it houses Europe’s most flexible labour market and productive workforce as companies can operate 24 hours a day, 365 days a year as no restrictions apply regarding overtime. Its talent pool is limitless with 96% completing a secondary education. 4 out of every 5 people speak English and 50% of the population can also speak German. It is the world leader in cleantech and life sciences and additionally the world’s best test market. Danes also come out on top as the happiest people in the world on international happiness indices.
A strategic European base due to their pro-business, low corporate tax and skilled workforce. The result of this has encouraged more than 1,200 multinational companies to use Ireland as their business platform. Its performance as a hub for Foreign Direct Investment is unrivalled. The Industrial Development Authority (IDA) nurtures these high-growth companies, helping them forge their future success within Ireland. The agency IDA was founded in 1949 and placed on a statutory footing a year later. If you’re a property investor you’re likely to be interested in several things, capital appreciation, low maintenance costs, a good flow of tenants and the rental yield your property will generate. Across the country, cities and regions that have benefited most from a price recovery in recent years are producing the lowest yields. However, Ireland in general is still performing better than many countries across Europe, with the lowest Irish yield on a par with UK averages.
Known as Europe’s economic powerhouse, it allows investors to profit from the performance of the fourth largest economy in the world. It also has one of the highest productivity rates in the world and is always associated with efficiency and quality. After spending six years at the top its now tied third with China & the USA in global exporting. 81 percent of the German population have been trained to university entrance level or possess a recognized vocational qualification. It has a first-class infrastructure, competitive tax conditions, a secure investment framework and inviting investment incentives. The superior health and education provision attracts a cosmopolitan society living an excellent quality of life. Recent residential investment has been brought about particularly now in Berlin renovating historical buildings for high specification accommodation since the removal of the wall. An abundance of cheaper property awaits foreign investment potential. It is also worth mentioning that their budget is every five years and effectively creates their economic stability.
Wise Investment Properties have investment opportunities in France, Germany, and Spain.
The sixth largest economy in the world and the third largest economy in Europe, this makes it a relatively safe place to put your money. France houses one of the largest economies in the world with a very developed securities market. France alone is a market of over 65 million consumers, making it the 2nd largest in Europe. Its infrastructure offers the most extensive road network, second-largest high-speed rail network and Europe’s leading business airport.
France is the world’s leading tourist destination in terms of visitor numbers and ranks third in the world in terms of health infrastructure. France ranks eighth in the world for life expectancy at birth (82.8 years). It has great cultural and creative appeal including the Louvre which is by far the world’s most visited museum. Property renovation projects are not high on the French agenda and foreign investors are picking away at the abundance of historical and cultural properties sitting waiting for nurture. Value for money is somewhat hampered by the availability of DIY products in rural locations.
Foreign investors cannot buy property in some European countries and unless you know the market it is an area you should avoid unless it’s an absolute necessity. Buying through a UK registered development/investment company is the safest route to market and an ideal chance to diverse your property portfolio.
What are some important & key points to know before investing abroad/ investing in property in Asia?
It is worth pointing out that regulations with regards to investing abroad differ considerably from country to country and the necessity to exchange currency could affect your purchase. If the foreign investment opportunity is being offered by a UK registered company, then you will still be protected by any applicable English Laws. You should however check that this is the case prior to any investment.
To invest in property in Asia you should have a good understanding of that country including their rules and regulations, more importantly their laws and tax implications. The risk potential abroad is hampered by the lack of most people’s knowledge and if you are considering buying Asian property you should seek professional help first. We would not recommend any company or service as we do not have expertise in this area.
How can Wise Investments help with someone’s Asian property investments?
We can provide you with opportunities that are property related and are offered by known UK registered businesses. We can arrange finance, currency exchange, provide due diligence and research the opportunity prior to investment. We can help with the application process and be a point of contact for reassurance. We can also provide you with opportunities ordinarily you would struggle to find yourself.
What are the risks of property investing in Asia and how can Wise Investment help reduce those risks?
There are many risks involved in property purchase. Location, purchase price, condition, repayment ability, restrictions attached and economic changes to name just a few. Wise Investment Properties only offer investments by known developers/investment companies. The full investment details are explained comprehensively and normally come with assurances of investment growth potential and known yield returns and any applicable terms. The risks have been minimised to attract investors to see it as a viable opportunity and encourage investors to return prior to the offering.
What are the different types of property investment in Asia?
Commercial and Residential property but realistically the property market is better placed in shared schemes such as hotels and commercial development offering greater levels of security targeting specific tourism or business activities with known demand or key areas for improvement.
What is the most popular property investment?
Tourism related property purchases.
Why would you invest in Asia rather than Europe or the USA as an example?
Cost as property is much cheaper and you get a lot more for your money in most places if purchase is permitted. However, it has a greater risk potential so this could also be a reason why you should invest, to enable you to spread your risk to get a better return ratio.