If you have read this blog often enough you will know that we consider places like Cape Verde “the next big thing” in the overseas property markets due to key factors that include a stable and long lasting government, booming economy (fuelled largely the tourism industry) and proper use of international funds allowing for huge structural developments in Cape Verde including health, education etc..
Today I am writing about the flip side of the industry – and the buzz word on everyone’s agenda right now - Russia! WSJ headlines “From Russia with Cash”, the BBC reports that “Russians snap up Australian luxury” and the Business Times Online asserts that “Russians …invest its oil billions abroad”. According to various estimates, assets belonging to Russian citizens in the West amount today to over €300bn and here is why they will keep investing abroad;
1 . Unreasonably high priced properties (expected to drop at some point) make real estate investment at home un-promising
2. Russian stock market is unstable and has in fact dropped significantly
3. Russia has “no reliable (if any) pension plan” so real estate investment abroad is considered for many the safety net.
Today I am writing about the flip side of the industry – and the buzz word on everyone’s agenda right now - Russia! WSJ headlines “From Russia with Cash”, the BBC reports that “Russians snap up Australian luxury” and the Business Times Online asserts that “Russians …invest its oil billions abroad”. According to various estimates, assets belonging to Russian citizens in the West amount today to over €300bn and here is why they will keep investing abroad;
1 . Unreasonably high priced properties (expected to drop at some point) make real estate investment at home un-promising
2. Russian stock market is unstable and has in fact dropped significantly
3. Russia has “no reliable (if any) pension plan” so real estate investment abroad is considered for many the safety net.
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