International property market rules ’still apply to foreclosures’
International property investors can find plenty of foreclosed homes in many countries, but the best prospects are in the US and the UAE, it has been stated.
Head of research at investor support service Property Frontiers Paul Chadd said these countries can offer the best prospects for increases in value in the long run.
In the US, he stated, it is important to avoid places where prices are low but the economic prospects are fairly gloomy – like Detroit – while Florida offers promise because of its tourism.
This should be recognised because however cheap such property may be, the same "basic rules" will apply, Mr Chadd stated, adding: "Do your market research; if the underlying fundamentals don’t exist, do not invest."
He stated that for this reason Spain is another country where the prospects are not so good because of its high unemployment, whereas Abu Dhabi has great long-term potential due to the "advantage" of seeing neighbouring Dubai develop first and "learning" from its mistakes.
Figures from property research firm RealtyTrac showed that in the US the first half of 2009 saw 1.9 million foreclosure filings on 1.5 million homes.
Written by Tom Britten