Words: Ashley Rigg
Published: 28th November 2011
*Top 10 global property safe havens
The media loves a top 10 list. They are easy and cheap to produce and you rarely have to reveal your methodology.
Property Journalist Graham Norwood has put together an
interesting list of the "safest" global property destinations for UK newspaper, the Daily Telegraph. The criteria used is extensibly the “lowest risk” locations but lifestyle arguments are used to justify many of the selections.
I've added my thoughts. I'd be interested to hear your views.
1. Canada
Picked for its relatively strong mortgage market, solid legal system and stunning ski resorts. Difficult to argue with Norwood’s selection especially as Canada has managed to avoid the worst excesses of the neighbouring US.
2. Hong Kong
Chosen due to limited supply and plenty of demand from the Chinese mainland.
Hong Kong has experienced some of the steepest rises in property prices with values almost doubling since 2005. However, “experts” insist the boom is sustainable.
There are now over 30,000 real estate agents working on the island, more than three times the number in the whole of the UK. The experts predicting sustability are agents with a vested interest. I’m not convinced.
3. Switzerland
Favourable tax treatment, a stable market and great skiing make Switzerland a great bet according to Norwood.
Buying a property is also a huge bet on the Swiss Franc which is hugely overvalued according to most measures.
4. Mauritius
Outstanding natural beauty, a strong political situation and a new scheme to encourage foreign investment make Mauritius a good tip.
5. Gibraltar
Spain without the problems is the basic message.
A strong economy in financial services, telecoms and internet gaming combined with very low taxes make Gibraltar an excellent bet.
6. South Africa
Low volatility in the property market, outstanding beauty and cheap prices are the key arguments in favour of South Africa.
7. Barbados
Chosen for its international prestige, accessibility and a strong legal system.
8 St Lucia
Barbados with lower prices.
9. Kenya
Chosen for its “consistent growth”. Not sure it meets the strict “low risk” criteria though.
10 The Cayman Islands
A reputation for international finance, limited supply and fantastic lifestyle make the Caymen Islands a solid choice.
Comment
It is very difficult to produce a list like this on a global scale. All markets are local. Buying property in established prime locations is the key to preserving capital and minimizing risk. The key is finding clients with a lot of liquid capital and long time horizons.
Source: Daily Telegraph
User Comments
Ashley,
I can only really comment on Canada, Barbados and St. Lucia but your reasoning and the selection seem reasonable. I would like to point out that many Canadians are considering buying in Barbados. I believe this is because 1. The Canadian dollar's strength against the US$ (the Barbados dollar is tied to the US DOLLAR). 2. There is a beneficial tax treaty in place 3. The weather and lifestyle are attractive 4. The number of flights and carriers has increased and made it cheaper to get to.
Best
David
David Coombes,
Caribbean Island Properties
My selestion would be:
1- Spain, 2- Souh Africa, 3- Mauritios
The selection given: Canada dissatrous Climate
Hong Kong: Too expensive, too Rich & too poor
HERMINIO GARCIA,
GRANDES PATRIMONIOS INMOBILIARIOS