Guide on best investments for 2016 for property investors. As the global economy experienced turbulence in 2015 due to slowdown in Japan, China, Europe, and emerging countries. Market is covered by uncertainties whether the next crisis is around the corner. Many investors have diversified their portfolio from stocks/shares/bonds (higher risk) to hard asset like property (lower risk).
Identify best investments for 2016
This article will help you identify where and which property you must invest in 2016.
Best investments for 2016 in UK
Generally UK property is still facing chronic supply shortage problem which creates opportunity for investors to invest in the first world country with high return potential.
Average house price in London has hit £500,000 in 2015 mainly drives by the property in zone 2 and 3. House price in central London has priced out many potential buyers therefore the price started to drop in 2015. If you are looking to invest into London property, you need to start to look at zone 2 and 3 and it must be near upcoming Crossrail station. Because Crossrail is the game changer and will be the main mode of transport when it is completed. In 2015, Newham borough see UK's largest house price rise. (http://www.theguardian.com/money/2015/dec/28/newham-east-london-sees-uks-biggest-house-price-rise)
According to HSBC research, Manchester is ranked as the best UK buy to let hotspot and offering the best rental yield with high potential capital appreciation. Manchester is the 2nd largest economy in UK after London and it is set to be the leader of "Northern Economic Powerhouse"
The annual housing supply is 47% below what it is needed. If you are UK property investors, it is time to capitalize this opportunity and start to invest into Manchester. (http://www.manchestereveningnews.co.uk/business/property/booming-manchester-needs-extra-3-10565702)
Best investments for 2016 in Asia
ASEAN Economic Community (AEC) starting in 2016, who will benefit the most and where is the best investment for 2016 in Asia.
Singapore property market is slowing down in the last 8 quarters after the government implemented many rounds of cooling measures strategy to prevent the property market hit the bubble stage. In 2016, government will reduce the land sales programme which result in lower number of housing supply. Coming forward, investors have to look whether government will start to relax the cooling measure. If that is the case, property prices in Singapore will be more resilient but you can't expect price will rise fast and much like what we experienced during 2009 - 2012.
Overall, Philippines economy is growing strong and the currency is holding steadily amid the depreciation on the neighbour emerging countries. The main theme for 2016 will be the upcoming presidential election.
If the next government is supporting economic growth and welcome foreign investment, Manila (Makati and BGC) is still the best investment throughout South East Asian countries. Expected gross rental yield as high as 8-9%, high occupancy rates as many locals from other cities and expatriates are coming to these area to work plus the potential of property appreciation as the economy is growing stronger and higher demand in the property.
Vietnam property market just opened up to foreigners from July 2015. Foreigners are allow to acquire Vietnam property with 50 years leasehold. Lease can be extended at minimum cost. Foreigners, especially those who has businesses in Vietnam see this as best investments for 2016 as they want to capitalize on the first mover advantage before more people understand and more savvy about the Vietnam property market.
Cambodia property price is booming over the last few years. Big names including Shangri-La, Sofitel, Parkson, AEON, NagaCorp, Ducati, Starbucks, and many more. Cambodia economy is growing at average 8% annually more than a decade and it is expected to grow around 7% over next few years. In addition, US Dollar transaction safeguard the property value from emerging market currency volatility.
In my opinion, over the next few years, we must avoid investing in Malaysia property. Political scandal, currency depreciation, and property price stagnant/depreciation makes Malaysia is not an attractive place for investment.
Another property investment to avoid, although not as bad as Malaysia, Australia property is also facing price drop due to lack of demand from China buyers. Australian dollar has dropped more than 30% from its peak mainly because of slowing economy and export growth which is affected by slowing down in China. If you are looking to invest in Australia, you may want to look at Brisbane where price is still lower compare to Sydney and Melbourne. (http://www.bloomberg.com/news/articles/2016-01-03/sydney-home-prices-record-biggest-quarterly-drop-in-four-years)
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Trilive @ Kovan
- Near 4 reputable schools
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- Dual key unit concept to increase rental yield
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Trilive @ Kovan - Freehold condominium with 3 level of great facilities
Enjoy higher rental yield with dual key unit concept
Oxygen Tower Manchester
- By reputable developer - Property Alliance Group
- Strategically located in Manchester City Centre
- Walking distance to High Speed Rail station 1 and upcoming High Speed Rail station 2
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Oxygen Tower Manchester - Iconic and tallest residential development in Manchester City Centre
HSBC research shows Manchester is the Top UK buy to let with 7.98% rental yield
Royal Wharf @ New London Business/Financial District
- Expected rental yield around 5%
- Analyst expects price will rise by 50% by 2018
- Mega township development concept (apartments, townhouses, piazzas/parks, offices, restaurants, bars, cafes, school)
- Jointly developed by 2 top developers, Oxley International and Ballymore
- Walking distance to DLR, Crossrail, River Taxi, Excel London, Asian Business Port, and many more
Royal Wharf @ London - Best Mega Township Development By 2 Reputable Developers
Property near crossrail with high rental yield and high potential capital appreciation
The Peak @ Cambodia – Sharing the same address with 5 Stars Shangri-La hotel
- Located in the most prime location in Phnom Penh
- First mover advantage - Booming Cambodia economy and property market
- Calculate your rental yield? Guarantee rental return nett 6% per annum for 2 years
- Asset in US Dollar
- Only from USD 19xK and only need 10% down payment where balance is deferred