“An investment in knowledge always pays the best interest” – Benjamin Franklin

Within the current economic situation, a time of uncertainty for all, it has become difficult to know what is the best move to make when it comes to your personal finances and savings. Should you keep them where they are and risk the change in interest rates negatively affecting them? Should you secure them in a higher-interest bond with a bank whose future remains shaky? Or should you invest the money in the stock market where day-to-day worries may hinder your sleep at night? With these tricky questions on the minds of many in the current climate, another alternative could pave the way for the savvy investor – the emerging overseas property market.

Susan Nienaltowski, an Operations Manager from Waterlooville in Hampshire, recently moved money out of her bonds by purchasing an apartment on Isla Margarita in the Caribbean through Emerging Earth. This decision was made after a suggestion from her IFA when she expressed a desire “to make more money faster” – a feeling shared by many in the current climate – and he suggested that the overseas property market might be just the place to do it.
After much consideration and research, Susan – a keen traveler – decided to invest €136,220 in a two bed, two bathroom apartment with a large balcony in the Caracola Beach and Spa Resorton Isla Margarita. Susan was drawn to the location as it is the only Caribbean island outside of the hurricane belt and she felt it to be an “up and coming destination in a popular region”. Investing in an emerging location, tipped to show substantial house price increases in coming years, meant that Susan ensured a sound investment for her money and with a great number of people currently losing money now stagnating in more ‘traditional’ savings places, she has found this option to be potentially more secure than some conventional methods, with added benefits. She says,
It seemed like a very good deal… There is guaranteed rental income and also, should I choose to, it seems a popular area to own a property and so I could sell if I wanted to.” Susan is right: with tourist figures in Nueva Esparta having increased by 3.42% during January to September 2008 proving the popularity of the region, house prices in coming years are also likely to follow suit. Not only this but the Caracola Beach and Spa Resort guarantees a 7% rental return for 10 years – a great deal more capital appreciation than the current income likely from savings accounts, limited to around the 5.5% mark.
Traditionally, however, it is the ‘risk’ of buying overseas that deters many – especially in emerging markets where the potential of capital growth may be higher but the risk in turn is too. Given the current well-publicised risks involved in investing in UK financial institutions however, the overseas ‘risk’ of old can now seem less daunting. When making her choice, however, Susan still ensured she spread her risk,
“I decided to spread my investment between two properties and am also purchasing an apartment in Egypt.” Choosing to purchase two lower-priced properties, as opposed to a single property that would take up all of her money in a market with a limited track record, is recommended as the risk is lower, therefore adhering to the old adage of not placing all your eggs in one basket. This is especially true when, like Susan, you have not visited the regions you are buying in.
Along with the other usual considerations when buying abroad, as a single woman Susan recognises that she could have also been prey to unscrupulous agents. Wise to the fact, however, she has some tips as to how to best avoid the potential pitfalls,
 
“I think the important thing is to use people you can trust.  I feel very comfortable that I understand all the contractual details and legalities because I had someone to refer to if I needed any clarification… The lady I dealt with at Emerging Earth was brilliant and went through the contract with me to make sure I was completely comfortable with it.” As Susan has shown, it is very important that when investing your savings, you feel truly comfortable with the choices you are making and that you have the necessary professional support. Mark Andrew, Managing Director of Emerging Earth, agrees,
“When looking to invest in an overseas market, it is important to recognise that there may be a great deal about the buying and legal processes that differ from that of the UK and therefore it is very important to seek advice from a trusted source as well as to buy through an established and professional agent. Susan went about her investment in a very sensible way – she took independent advice as well as researching the market herself using the internet. Her story proves that a well thought out investment is a secure one.”
 
Susan remains open-minded about her investment in Isla Margarita, “it remains to be seen as to whether I shall make money from my investments however it has been an exciting undertaking and I am looking forward to visiting my property”. Perhaps, therefore, given the current times of economic uncertainty at home more people should look to take the measured chance Susan has taken – and just maybe you will end up profiting. 
For more information on investing in Isla Margarita, contact Emerging Earth on 0845 604 1208, email team@EmergingEarth.com or visit www.EmergingEarth.com.