The financial markets all over the world and the followers have been waking up to newer avenues that have higher capital growth potential than ever. In other words, the financial and capital market have evolved and discovered newer vistas of capital investment, never thought of before. Investment in property overseas is now the biggest rage in the investment scenario and has been giving the customers very decent returns.
The overseas property for investment, especially the Caribbean investments are considered the goldmine where you can invest your hard earned money and earn decent returns. You could invest in a Self Invested Personal Pension (SIPP) plan that is related to the properties and earn big.
However, the prospects of higher capital growth potential must not lure you into making hasty and wrong decisions. Hasty and wrong decisions, especially in matters of finance, can lead to a disaster. Since this is a relatively fresh development in the financial market, you need to be circumspect and careful and preferably take expert advice before you actually take the plunge.
There are various ways you could invest at an investment property abroad. The Caribbean investments have, among other regions, emerged as a lucrative destination where you could invest in the properties and earn good returns. You could rent five star rated properties at a rate that is well below market rates.
You can avail of 100% finance; have a specified period earmarked for free use to name a few till the property is completed. The places in the Caribbean that are hot destinations for overseas investments are Barbados, St. Lucia, to name a few.
Investment in the properties in the emerging markets too has been emerging as a very lucrative avenue. This is a very lucrative area for overseas property for investment. The emerging markets, because of the fast developing markets and economies in their respective countries, are high risk prone but at the same time, can offer very high growth and high returns on your investment.
You can purchase a property from the property developer and can later sell it when the value appreciates.You can also invest in the property development in a participative manner. In the first case, the returns are pretty high from the sale while in the latter case, you stand to gain from the profits that accrue because of the selling or renting of the property.
The Self Invested Personal Pension (SIPP) plan has also emerged as an option with a relatively higher capital growth potential.
However, before you take the plunge in any of the options that promise to earn you good returns, consider the pros and cons very carefully so that you do not incur any loss. It is advisable to take expert counsel.
By Robert Charlson