The papers are quite happy to keep reporting all the doom and gloom of today because it sells papers much better than good news. Every day we hear of wage slumps, strikes, rising cost of fuel and food and the drop in the housing market. Of course, people are all affected by these things but is it as drastic as they like to claim? There are still quite a lot of people comfortably affording their homes, booking holidays and investing in property.
Understandably, many are reluctant to invest in UK properties because of the slow market but if the cash is available then why not buy a foreign property? There is then the option to either move overseas or rent it out, earning a nice little income and saving yourself a retirement home. But where to buy? We see in the news many countries experiencing the same economic problems as the UK so we should pick wisely where to put our money.
For an up and coming country to sink your money into, why not look at Estonia? There are many reason s that make this the perfect area to buy foreign property so let's take a look.
Labour wages are rising every year in Estonia. This has pushed up the construction price index and this will soon be reflected in house prices. It will also have a knock effect to the price of older houses. Therefore, it is always best to get in before they do.
When Estonia joined the European Union, over 695 million Euros was poured into the country for development. A further 5.1 billion Euros is set to be invested in this country over the next five years. This is all going towards the country's infrastructure: roads, airports, hospitals, education and to improve the general standard of living. The job market will be crying out for people so work is not a problem. Once this has all been done, house prices will shoot up as this will be foreign property well sought after.
Tallinn, the capital of Estonia is privy to 81 per cent of all foreign investments into Estonia, making it a city that others in the know want to invest in. This must tell us something. Because of the outside investment that will be ploughed into business, more jobs will be created bringing in more people and creating a need for more accommodation.
Estonia is now the highest Eastern European country on the Global Growth Competitive Index. At position 20 it even comes higher than Hong Kong. Their high tech abilities are up there with the rest of the world. In fact, they intend to be completely wireless by the end of this year. It is also expected to be the financial centre for Western Europe and Russia.
Building is moving on a-pace in Estonia. If you're looking for a new build foreign property, this is the ideal place. High quality apartments and houses are going up all the time and now is the time to snap up a bargain, in readiness for renting to all the new employees that will be looking for accommodation.
Competition between Estonian banks is high, leading to low interest rates. This makes the property more affordable in the beginning. They are happy to lend to foreign investors and you won't have much trouble getting a 75 per cent mortgage. The economy of Estonia in general has been swiftly moving onwards and upwards for some time and it looks set to continue on that path for the next twenty years according to predictions.
Another area of growth in this country is tourism. The tourism business has been growing since people became more aware that the country is now stable, high tech and very beautiful. If you are looking to invest in foreign property you could do much worse than invest in a holiday home here.
These are just a few reasons that make Estonia a good place to be looking at but it won't be long before lots of people have the same idea. Outside investment is great for the country's economy and a strong, stable economy is good for the investors. Get in there now before prices rise!
Property expert Catherine Harvey looks at the newest place for foreign property investment.