Location is always the key when investing in property overseas
Property speculators thinking of investing in real estate have been reminded about the importance of location.
Thomas Wuhrer, owner of HotelInvest, a real estate agency for hotels in central Europe, pointed out that real estate in prime locations near gold and blue chip shares provide the perfect security against inflation.
Potential buyers were encouraged to consider investing in hotel properties, as these types of real estate typically offer very healthy returns on investment.
Mr Wuhrer pointed out that hotels are usually built in the ideal locations such as city centres, where the increase of real estate reaches an average of three per cent per year.
"All our hotels are located either in top cities like Hamburg, Munich, Salzburg and Vienna or in very prominent holiday areas like Kitzbuhel, St. Anton and Andermatt," he said.
"[Our] investors get a return on investment of between six to seven per cent of the total capital invested. In premium locations, the increase of real estate is around three per cent on average."
Mr Wuhrer added that an investor gets about seven per cent return on investment from the lease, plus an increase of real estate, which amounts to a rate of increase of around ten per cent per year.
When buying real estate abroad, buyers are urged to make sure they use a reputable business money transfer firm and obtain impartial advice before committing to a purchase.
Liz Rowlinson, editor of A Place in the Sun magazine, recently advised prospective property buyers to obtain independent legal advice before acquiring a home overseas.