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Q: What is a hotspot?
This is our delight!
Gold: Great location, Great growth, Great Rental Income. (Normally High Budget and low investment risk good for short term and the cautious investor)
Silver Great Location, Great Growth Potential, Great Rental Income (Normally Medium Budget and medium investment risk good for medium term and the medium investor)
Bronze: Great Location, Great Growth Potential, Great Rental Potential (Normally Low Budget and High Investment Risk good for Long term and the adventurous investor)
Top Ten Hotspot Indicators
- An expanding economy and increase in tourism - Countries with an expanding economy will witness an increase in tourism, leading to high rental demand and increased capital returns.
- Political Stability - Research into the political environment of the country investors are interested in is important, especially if it has a history of war and instability.
- Government and private investment in the area - Investment encourages improvements in local infrastructure and amenities and brings money into the area, pushing house prices upwards.
- Improvements in local transport links - New or expanded airports and upgraded roads and railways increase accessibility and the inward movement to an area.
- House-buying process simplified for foreigners - Keeping abreast of legal issues surrounding foreigners, access to the housing market or removal of purchasing restrictions allows investors to move in quickly, taking advantage of lower property prices.
- Large companies relocating to the area - This brings instant investments and employees often relocate to the area. Corporate lets, for example in Sofia, Bulgaria's capital, are a good opportunity for investors.
- Recent entry to the European Union - This brings inward investment and the easing of restrictions on movement of capital and trade. Many of the new EU member states have not disappointed.
- Large scale leisure facilities being constructed - Ski runs, golf courses and hotels increase property prices and push up demand for second homes.
- Low cost flight routes opening up - Cheap flights increase the demand for holiday homes and rented accommodation.
- Hosting an international sporting event - These encourage development and regeneration and attract tourists to the area, boosting house prices.
We recommend you don't put all your eggs in one basket as investments change. If you spread your risk this can be very safe and very profitable.
