Perspectives on the precarious global economic climate are constantly flooding the news as well as taking their toll on investor sentiments as reflected in the volatile stock markets and currency fluctuations worldwide. And yes, the bank scandals don’t help either.
However, while the sovereign debt crisis takes centrre stage with Spain, Italy and Greece bearing the forefront of the blame of the euro’s slide, perhaps a more global perspective with respect to borrowing costs for governments being at an all time low could reveal that the economic woes are more widespread than suspected.
In an article by Business Insider, a year or two ago, an analysis of 10 year treasury bonds around the world showed that these borrowing costs were at all time lows and suggested that instead of being a sovereign debt crisis as most reported, it was rather a problem of being a “growth-deficient world”. The article stated, “What this essentially means is that there’s a lot of money out there that sees no productive investments in the real world”.
RISK VS RETURN
Investing during such an ambiguous time might seem too risky for some. However, for others, it is a moment of opportunity, and safe haven investments such as property, can offer a cushion of protection and moreover, a positive return on investment.
In a report by Wealth-X Research, Ultra High Net Worth investors (UHNW), are not only looking for these types of stable micromarkets or havens per se, but also taking “lifestyle” into their investment considerations.
This new trend is good news for places such as the Costa Brava where a combination of golden visa opportunities for non-EU residents, reduced property prices and growth opportunities are beginning to attract foreign investors.
The bottom line: Investing in a good property in a good location will always lead you in the right direction…and that is Up!