Seasoned overseas property investors know the time to invest in a housing market is before the rush. This fact means that some emerging markets may have not quite developed in terms of infrastructure. When economic indications show that improvements are on its way coupled with demand for housing investors need to sit up and pay attention. Profits are made on the purchase price and buying real estate before the demand can be a rewarding business.
The continuing economic growth in China has finally reached Mongolia where, the economy grew over 10% in 2004. Solid economic growth is expected over the next few years, especially in the mining industry, which accounted for 12% of Mongolia’s GDP in 2004. This means that opportunities for foreign investment in and development of residential units could prove to be lucrative over the long haul. And in fact, capital growth of property prices and strong rental returns has begun to draw foreign investors from Britain. The Times newspaper from the UK reports that high property costs at home are encouraging investors to look abroad for better returns on their investments. And some of those investors are looking at countries such as Mongolia.
