Welcome to 2012 – the year of diversification

 

 

 

 

 

 

 

 

That was the week in property, by Mike Hoffa

5th January 2012

Well there we go, we’ve once more managed to get through that day of celebrating with your friends culminating in dancing and a bit of a disappointing bang. No, I’m not talking about your wedding day – another New Year has come and gone.

It certainly seemed like an interesting one this year. The usual drunken merriment seemed to be all the more edgy as we headed into 2012, a year which could prove to be a very tough one for many people. Let’s face it, when even the politicians are saying “this is going to be sh*t” you know it’s not going to be an easy ride.

However, not one to be beaten down by the usual ups and downs of economic cycles I thought it worth looking ahead over 2012 to see were there might be some opportunity in the property world. The only thing is you might need good eyesight because a good portion of that opportunity won’t be found on our own fair shores – expect continued stagnation of the UK property market, in my opinion.

 

“…when even the politicians are saying ‘this is going to be sh*t’ you know it’s not going to be an easy ride.”

 

If you’re willing to cast your net further afield, Reuters posted a good piece speculating (and quite frankly that should be Speculating with a very large capital “S” in the current climate) on overseas commercial property investment opportunities. The US seems tipped to remain the most popular choice once again, but it seems that the Brazilians are also evading the cutbacks [Ed – that’s terrible Mike, you’re fired – again] and could even be gaining ground on the US when it comes to commercial property investment.

But Brazil only leads the pack from what seems to be a clear trend of emerging markets proving more popular as investment opportunities. The festively named Turkey also appears popular with investors, with India, Vietnam, Colombia, Hungary and Qatar all making the top 20. But before you starting shouting “hang on a minute, Mike – you said China had gone boom last time”, investment in these regions does come with a word of warning. They’ve all seen growth rates to rival or exceed those of Western markets just before the crash and there are hints the tide may be turning, so invest wisely!

However, closer to home it’s good to see that London remains the number two global city for investment just behind New York, according to Reuters. This means that both commercial and residential property in our capital and the surrounding commuter belt is going to remain a relatively safe bet, despite everything else that is going on with the economy. After all, if it can keep its value held up at the moment, it’s got to be based on pretty sound fundamentals.

 

“The festively named Turkey also appears popular with investors, with India, Vietnam, Colombia, Hungary and Qatar all making the top 20.”

 

And don’t underestimate the potential for picking up some property bargains around the rest of the UK in 2012 either. Just as recessions are good times for companies to invest for the future, the savvy property investor might also find it a good time to broaden their portfolio, with deals available that you won’t find during the boom years.

Whilst we all know I’m biased because I know the boys at makeoffer pretty well by now, I have to say that 2012 could well be the year to keep a closer eye on property auctions, even if they’re not normally your bag. I’ve seen some very keenly priced properties springing up recently at auction and was even tempted to dip into my own pocket recently, so they could be onto something.

So buckle up as we hurtle through 2012 – no doubt it’s going to be a bumpy ride. But for those who can keep their chin up and take the time to look around, it could be a very good year to invest in property.

About the author:

Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.

Mike’s question of the week: Time to spread your property investments in 2012?

Tags: makeoffer.co.uk, Property, Property Auctions, Property Market Comment, UK Property Market

This entry was posted on Thursday, January 5th, 2012 at 2:44 pm and is filed under Mike Hoffa. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.