Real Estate Investing in Hong Kong, Dubai, and Brazil

By Paul Benson

Tuesday, August 19th, 2014

In 2013, Forbes listed Hong Kong, Dubai, and Brazil as the hottest property markets in the world.

It was right... and I can tell you this from experience. I've done business in all three, and if you're looking outside the borders of the United States, you won't get much better than these.

But what does this mean for you — the “hottest” markets?

 

Most investors would just look at this list and shrug it off as something that's only relevant to high net worth individuals. But with the right connections, you can actually land some pretty lucrative deals.

That's why I'm here.

Of course, before we go any further, let's take a closer look at why these three markets are so hot...

 

Hong Kong

 

There's little doubt that when it comes to real estate and high-profile properties, Hong Kong goes all out. And that's what keeps it in business.

From 2008 to 2013, Hong Kong’s residential property prices rose 120%, despite the financial crisis. And the wealthy continue to swarm.

One of the most intriguing properties in Hong Kong is the 2012 Opus project, which was developed by Swire Pacific. A single unit sold for $58.7 million.

     

Since that sale, Opus has quickly become a symbol of super-luxury in the city. And while real estate has recently been slowing down, it still hasn't affected high net worth buyers.

Truth is, developers and rich owners are happy to hang onto their prized properties — even empty ones — despite the dips in the rest of the market. This is a major factor in the high-dollar game, as this will mean smaller inventories in the upswing.

 

 

Dubai

 

As one of the wealthiest cities in the world, Dubai is the perfect place for medium- to long-term investing.

Property prices are expected to rise by 40% in 2014, and Dubai’s successful bid to host Expo 2020 has attracted an influx of global investment money, which has led to a boom in employment. This, in turn, has let to a boom in property development.

Truth is, we're now starting to see a real rush on new investment in the region.

“Any investor should take note of Dubai because of the opportunity that lies here, as it is one of the few places in the world that has excellent equity growth and good cash flow,” said Sunil Jaiswal, president of Sumansa Exhibitions. And he's right.

Even with all of the current construction going on, Dubai will not meet demand. It can't. This market is currently experiencing an unprecedented growth pattern that has many years to go.

I'm actually working on a new report right now that outlines some of these opportunities, so keep an eye out for that.

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Brazil

 

Brazil’s real estate market is a game of patience and payoffs — similar to the soccer matches that took place a couple of months ago.

Millions of jobs were created during the World Cup, and with that came more real estate.

The World Cup generated around $15 million in revenue, and it lured in quite a few big-money investors and developers.

The most popular investment is undeveloped beachfront land on Brazil’s northeast coast. The property value has doubled due to foreign investors, and the forecast for growth is looking very promising for early investors.

 

A national survey found that for every 10 properties sold, three are being purchased by foreigners. So 30% of beachfront property is in the hands of overseas investors.

This factor does help balance this ultra-high dollar market if the local economy stumbles; however, that does not appear to be a factor here anytime soon.

Monaco

 

Surprisingly, alongside these others is the smallest independent state in the world: Monaco. It is home to some of the world’s wealthiest individuals, highest-priced properties, and top standards of living.

This state may be geographically small, but it is larger than life in its global presence. It carries the highest quantity of ultra-high net worth individuals in the world and stands as the sixth most important destination in real estate holdings.

 

In 2013, Monaco had one of its best years for real estate. It was up 10% in the first quarter, and there is no sign of a slowdown.

Global investment can be a good hedge, as it takes advantage of other economies that may or may not be affected by what we are dealing with here in the United States.

And in your search for profitable global investments, you may find the region helping you prosper is also your new vacation spot.

That's right — you can actually position yourself to make money while vacationing. In a few weeks, I'll show you exactly how to do it.

Until then,