Whether you are looking to move abroad to start a new life or want to take your business into a new and exciting marketplace, there are a few interesting options out there that might be worth checking out. While the ‘safe bets’ of the United States, China, and the major European nations will always be attractive, scratch beneath the bigger economies and you will find plenty of opportunities.
While moving to one of these places on the plane might be something of a risk, it’s also important to remember that being brave can often pay off. Smaller, developing nations can often be home to an exciting environment that offers astonishing rates of growth. Here are some of the best, up and coming areas in the world that might be worth your time.
Malaysia might be a small country of 29 million people, but its economy has been showing some encouraging signs in recent years. The nation has worked hard to reduce poverty levels in the past half-century or so, and while it was affected by the global financial crisis in 2009, it has bounced back quickly. Cheap manufacturing costs and little bureaucracy in business regulations means that Malaysia is open for business in a big way.
For such a relatively young nation, the Czech Republic has come on in leaps and bounds in recent years and is now one the best opportunities for business people in Europe. It has a GDP of around $205.3 billion and is well known for its welcoming nature towards entrepreneurialism and business. It’s also politically and economically stable and has a reasonably well-developed social backbone that provides citizens with a good life overall.
Poland is another European nation well worth checking out if you have a business. The country provides an excellent environment for entrepreneurs. The population is well educated, and Poland also offers one of the most skilled workforces in the world. It’s well-placed, too, with easy access to the rest of Europe. While many Poles moved to different nations when they joined the EU, it’s interesting to note that many are now returning.
Ras Al Khaimah, UAE
The UAE has been of interest to many major global companies for many years now. But there are more opportunities there than you might think. Ras Al Khaimah has always lived in the shadow of its neighbors in the United Arab Emirates – Dubai and Abu Dhabi are a good example of this. However, there is a lot of potential in the small emirate known as RAK, thanks in no small part to the leadership of the Al Qasimi family. A quick look at the Al Qasimi family history reveals the influence they have had on the nation-state, and it is now a place that welcomes business opportunities from around the world. It is also one of the fastest growing areas on the planet for tourism, and able to rely less on sales of oil than its sister emirates in the UAE.
The former British colony is known as one of Asia’s four economic tigers, and there has been incredible growth over the past few years, particularly in the technology and pharmaceutical sectors. With low unemployment and high GDP per capita, it’s easy to see why so many businesses are looking to enter the Asian market head to Singapore first. And you won’t be alone – immigrants are expected to make up half the population by as early as 20130. It’s a dynamic place in the world, full of movers and shakers and is known as one of the most welcoming nations for entrepreneurs.
While India has slipped from its top spot of recent years, it’s still a place where investment can pay off. It’s a fast-growing, diverse economy that has an incredibly skilled workforce. Given its workers are well-educated and English-speaking, it’s a no-brainer for many entrepreneurs who want to invest in technology, business outsourcing, and software. In fact, India is ranked Number 3 in the world for differentiation, and its unique business environments mean that many movers and shakers thrive in the country.
It’s well worth investigating Thailand for business opportunities. It’s especially true if you are in the manufacturing or agricultural industries, as these are the two sectors which tend to keep unemployment and poverty low, and the economy has been growing steadily over the past decade or so. Tourism is another industry worth investigating – especially if you have an interest in the more adventurous activities that go down a storm with backpackers and holidaymakers. It’s incredibly welcoming to new businesses moving to the area, too, and if you are looking for a place with something different, Thailand has a lot going for it.
Israel isn’t without its risks, of course, given its location in the complicated Middle East region. But it’s one of the best nations in the world for opportunities in the technology sector and is an incredibly advanced economy. The people are well educated, and Israeli culture has a lot of influence throughout the world in many different areas, including science, the arts, and politics. Yes, there are plenty of terrorist threats to contend with, but as we have seen everywhere else in the world, it’s not just a problem in the Middle East. And the simple fact is that it is a great environment for all kinds of entrepreneurs, and offers a high quality of life to its residents.
The Indonesian Islands cover a vast area in the sweet spot between Asia and Australia, and the archipelagos are a natural bridge between two continents, making it an attractive proposition for many entrepreneurs. Indonesia enjoys the largest economy in the region and is known as one of the world’s richest nations. Major exports include natural gas and crude oil, palm oil, and coffee and cocoa. But it’s also becoming something of a centre for technology in the region, and many entrepreneurs are taking advantage of the super cheap manufacturing costs in Indonesia.
Any of these countries tickle your fancy? Let us know about them in the comments section below.
Important Calculations for Property Investment
Property investment can be a daunting prospect, even for those experienced investors. Therefore, it is important to make sure your numbers add up. Follow these crucial calculations to discover the potential of your property and how profitable it can be in the future.
Return on Investment (ROI)
Strong returns are one of the biggest indicators to a successful property investment. The larger the return, the more profitable the property has become. Return on investment is a way of working out how much money you have made, compared with the money you have put in. A simple calculation is the annual profit minus any costs divided by how much money you have started with. To put this into numbers:
Annual rent: £5000
Annual costs: £2000
Purchase Price: £200,000
Mortgage use: £75,000
Cash Invested: £25,000
£3000 ÷ £25000 = 0.12. So, return on investment is 12%.
ROI highlights how effectively an investment is being used to generate profits.
Stamp duty refers to a land tax that is important to consider when purchasing property. In 2014, stamp duty on property purchases was reformed by the government. From April 2016 a 3% stamp duty surcharge was applied to the purchases of additional buy to let property and similarly, the same rate applied for those who purchase a second home. Thereafter stamp duty rates are applied in thresholds. To work out how much stamp duty you should pay on the purchase of your property visit the RW Invest stamp duty calculator.
Capital appreciation refers to the percentage that your property increases over a period of time, helping you to figure out when is best to sell. It occurs when the property invested commands a higher price in the market than originally paid, it allows you to work out how much potential there is to obtain high profits.
In order to work out the levels of capital appreciation, firstly you need to know what the average growth rate in the property’ location, however this would still only be an estimate. There are many contributing factors that affect capital appreciation from advancements in infrastructure and improvements to existing transport links, population growth, and increasing demand for the chosen area. Not one single factor can be seen as an indicator of capital appreciation therefore you must research forthcoming plans in an area in order to gauge the strength of its growth.
Gross Rental Yields
Rental yields are one of the biggest indicators to the amount of returns you are expecting to receive. It is an essential calculation for working out how much income you can make from your property, not including the capital growth. To calculate rental yields, take an annual income and divide it by the purchase price of the property. RW Invest, property investment specialists offer some of the best buy to let properties in the UK, securing competitive rental yields as high as 9%. The higher the rental yield, the quicker your investment will pay for itself.
Let take a closer look at the breakdown,
Annual Rental Income: £6000
Purchase Price: £100,000
£6000 ÷ £100,000 = 0.06
Rental yield= 6%
If you are purchasing a property in the UK from overseas, it is imperative that you figure out the current exchange rate as this can largely affect your property purchase price. Exchange rates are easy to find online, but to be sure to keep a close eye on them as they tend to regularly fluctuate. Savvy investors often get the best deal possible on their property investment, providing the exchange rate has been researched properly.
In property, every little thing matters, as the tiniest faults could be detrimental to a prosperous long-term future. This is a key skill for property investors to make sure an investment is worthwhile. Taking all calculations into account can allow you to plan and make executive decisions.
Strategies to boost your return on investment
Return on investment is the annual profit, minus income costs, generated by an asset, divided by the total cash you’ve put in. This sum looks simple and easy to use. However, it is important to take into consideration a number of variables. Expenses must be considered such as unexpected repairs or regular maintenance works, also take into consideration your financing method. Have you used a mortgage?
If you have bought a property without a mortgage, using your own money only, the net yields and the return on investment would be the same, as you are putting in the full purchase price. However, if you are purchasing with a mortgage, the figures may look slightly different.
A tedious debate that has emerged in property is how you should accurately calculate the return on investment. What costs should be accounted for? On the whole, everyone has their own ideas of what allowance for maintenance and voids should be included. Being consistent is key, as you can then compare different properties with each other.
Returns can include increased profits and reduced expenses. If you clearly define goals from the outset, and set as many quantifying benchmarks as possible, you will be able to create a more prosperous strategy to hopefully maximise your return on investment. Before you set out on your investment journey, it is important to note that offering a higher return may come with a higher risk. You should outline how much risk you are willing to take on.
Make sure your property is ready to rent
One of the easiest ways to maximise your return on investment is by making it rent ready before marketing. Ensuring the premises is ready and clean, fresh paint, clean carpets and working appliances must work, and all necessary repairs and maintenance should be complete. Purchasing property from experienced property companies like RW Invest guarantee your property is 100% ready for new tenants moving into the premises. Ensuring your investment property is rent ready as soon as possible will shorten the time it takes to lease the property and boost your return on investment.
Marketing is one of the largest determiners on the quality and quantity of application you receive for your property. Increasing exposure will ultimately reach more people and in turn get more tenants. The internet is the first place tenants look when trying to secure a new place to live, so be sure to strategically market online.
Reduce tenant turnover
If you keep tenant turnover to a minimum and keep good tenants, this will increase your return on investment in the long run. Maintaining good communication with your tenants makes them feel valued, which will help with things such as paying rent on time and taking care of the property because there is a mutual respect. Void periods, whereby the property is empty can be one of the biggest detriments to property owners, therefore avoiding vacant periods by keeping tenant turnover to a minimum will help reduce vacant periods.
Investing in real estate can be an extremely prosperous move, that can not only act as a second income for many but also as a sole income, providing it is thoroughly researched with no stone left unturned. Sourcing properties with high return on investment is easy providing you follow a few easy steps and bear in mind how to create the most successful future financially.
How to Increase Your Cash Flow in Property Investment
Property investment is a business venture, and like any business, it is essential that you make the most profit you can. There are a number of ways you can do this, and sometimes thinking from a business-based perspective can give you a new understanding. It is important to make sure you maximise your income and minimise your expenditure to get the best profit.
In order to maximise your cash flow there are a number of different strategies you can use. The situation you are aiming for is positive cash flow – making money from your property investment. Zero cash flow is breaking even and negative cashflow means you are losing money. It is important that you have an up to date record of all expenses and income, and that you have a detailed plan and financial forecast so you can prepare for the future. Keeping an up to date budget can allow you to recognise where you are spending too much or not earning enough, and that will allow you to make savings and increase your cash flow.
If you are spending too much on your property investment, there are a number of ways you can reduce your spending. If your property needs costly improvements, then it is essential you shop around and get the best price before agreeing to the proposed work. Try and reduce extra costs like advertising, maintenance work, and estate agent fees. Another thing that can be extra costly for property investors is void periods, where you aren’t receiving rental income from tenants. In order to reduce these it is worth considering property like student accommodation which is occupied year round by a new stream of tenants every year. It is also worth targeting long term tenants who are looking for a rental property for a couple of years.
It is also important that you understand the tax implications of a buy to let property investment and know where you can make savings there. It is worth talking to a financial advisor or doing some in depth research into how to save money on your property investment taxes.
Another way that you can increase your cash flow is through increasing your rental income. It is worth being tentative before you increase rental rates significantly, and many property investors worry that this might force tenants to move out. However, if you are providing high quality accommodation, and you need to earn more to balance the books, it is acceptable to increase your monthly rental income. It is important that these rate rises are affordable and appropriate, so look at similar properties and make sure you are charging a similar rate. An experienced property investment firm like RW Invest can help you choose the best rental properties out there, with guaranteed rental yields allowing you to plan ahead.
One other way of making sure you maximise your property investment’s cash flow is through increasing the value of your rental property. If you want to charge more rent, it is worth considering adding things like cleaning services, new amenities, or a gym membership. As long as this is cost effective, it may entice more premium long-term tenants to your property who are willing to pay more.
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