Overseas property investments overshadow stock markets

A review of Obelisk’s overseas property investments shows that a property portfolio continues to outperform other financial options.

The last four months has been a turbulent time for the global financial markets across Asia, Europe, and the US, which have fallen sharply over fears of a worldwide recession.

Monday saw the markets tumble to its lowest level since 2001 with all the worlds’ major markets seeing big losses by the end of trading. In a bid to stave further drops in share prices and calm nerves, the US Federal Reserve cut interest rates to 3.5%. However, the move had no effect on trading as shares continued to fall after opening on Tuesday.

In December, seven companies were removed from the FTSE 100 in the biggest shake up of the index since the dotcom crash of 2001. The ill-fated Northern Rock was the worst affected by the market downturn along with Tate & Lyle and DSG International both now in the FTSE 250 index.

The Ernst & Young ITEM Club also expects the UK economy to grow by only 1.8% this year compared with 3.1% in 2007.

In light of the current trading climate financial institutions across the board continue to advise on a balanced portfolio as opposed to concentrating solely on one financial investment option. As a general guide, and based on an investor’s age, a 35 year old should therefore invest 35% of their portfolio in real estate, bonds, or cash - the proportion of which increases with age.

The overseas property markets within emerging countries saw the greatest profits as increasing numbers of investors move away from the more ‘traditional’ markets, in search of higher returns on their investments.

After a full analysis of projects offered in 2007, the future looks very profitable for Obelisk clients. In terms of entering into new property markets and highlighting emerging hotspots within Eastern Europe, Asia, and South America, a balanced property investment portfolio has been fully achieved.

James Gonzalez, Market Analyst at Obelisk comments, “The extensive research, market analysis and due diligence undertaken by Obelisk prior to bringing new property opportunities to clients creates a win, win situation in terms of delivering profitability and diversity to our client’s investment portfolios. There is no substitute for a well balanced, diversified portfolio if you want to make reasonably consistent returns.”

“We take economical, political, and long-term sustainability into consideration when looking at new investment markets. This ensures we identify high growth markets early, to maximise our clients profit potential.”

Obelisk’s 2007 overseas property investment projects have already realised a minimum on target earnings of 10% for our clients, whereas the December 2007 figures for the UK property market shows a deficit of 4.2%, according to Investment Property Databank (IPD).

“Based on this report, our in house analysis and coupled with the uncertainty of the mainstream stock and property markets, we believe that our approach and knowledge will continue to bring the best investments to our clients in the most viable markets.”