An investor needs to know how to find the bottom of the market using their understanding of cycles to maximise their return on investment.
(PRWEB UK) 16 January 2013
Commenting on the report, Loxley McKenzie, Managing Director of Colordarcy.com said “Finding the bottom of a property market can be difficult, however there are certain indicators that can help you.
Everyone is familiar with the seasons and how the world and everything in it is influenced by natural cycles. A basic understanding of how cycles work can help property investors with their investment decisions. The clock on wall is perhaps the most visible example of a cycle and economists have their investment clock.
A property investment a cycle behaves in much the same way. An investor needs to know how to find the bottom of the market using their understanding of cycles to maximise their return on investment.”
Colordarcy suggests that property investors don’t need to be an expert stockbroker to understand how a property investment cycle works. The bottom is the point where a property market is at the beginning of the cycle and where property investors should be investing to get the best long-term return.
What makes overseas property investment so interesting say analysts at Colordarcy is that not all countries will be at the same stage in their cycles. This means there is always an opportunity to invest somewhere.
In the EU prices are tumbling or, at best, remain static because fewer people are buying or can get hold of the finance to buy. On the other hand if an investor was to travel to Turkey and look at Istanbul property or head west to the United States, then they would see the start of a new expansion phase.
If an investor were to look around Istanbul, the epicentre of Turkey’s thriving real estate market, they would see a city that is being transformed by new property developments. Construction companies simply cannot build apartments fast enough to satisfy demand.
Turkey is in a new expansion phase and this is the point where those investors who enter this market early will make the biggest profits from property.
In the US meanwhile, all indications are that states like Florida are right at the start of a new phase of expansion. Growth is accelerating and Miami Property prices increased by nearly 20% in 2012. (Source: Miami Association of Realtors).
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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