If you’re like me and you keep watching material from the likes of Joe McCall, Tom Wade and Rick Otton, then you’ll constantly be looking at possible markets on where to invest. And for this entry, we take a look at Iceland’s property market and see its potential for investors.
The global financial crisis that hit a few year ago affected Iceland as well. Housing prices and the property market suffered tremendously and it wasn’t until 2011 that it started picking up again. In 2013, it really picked up and grew by an estimated 3.5%.
Financial analysts predicted that the market would rise 24% by 2016. With things looking up, the property market in Iceland has seen the good times return, albeit slowly, but return they have. So, should you invest in property in Iceland? Absolutely. Here is why:
One of the main problems with lucrative places like Vietnam (surprisingly enough) is that foreign investors have a very difficult time owning property. The amount of red tape involved is enough to make anyone think twice, no matter how lucrative the deal. Iceland is not like that at all.
In fact, it is by far one of the most ‘foreign investor’ friendly nations on the planet. There are no particular laws enacted in Iceland to limit foreign buyers from acquiring property. That is why many foreigners have flocked to thriving cities like Reykjavik.
Unlike many small cities in the nation, Reykjavik has a growing population. With over 360,000 people, most of whom are in need of excellent housing, investing in such Icelandic cities might just be a wonderful opportunity for those looking to run HMOs or even buy to lease/rent homes.
Iceland’s Stamp duty sits at 0.8% while non-citizens will have 20% taxes on their investment properties. Investing in various foreign properties will show you that the taxes in Iceland aren’t as high as it is in some nations. Since Iceland belongs to the EEA (European Economic Area) as opposed to the EU, members of the EEA enjoy the same rights as Icelandic citizens with non-members incurring the aforementioned 20% tax on their property investments.
High housing standards
Reykjavik attracts very high housing standards with wooden floors and bright open spaces being the norm of most home designs. This is a good thing because it will force you to invest in quality. In the long run, you end up increasing the value of your home because of these high standards.
The name itself gives you a hint on what kind of weather plagues Iceland. Because of that, owning a vehicle is a necessity. Other amenities that are a necessity in Iceland are things like heated outdoor pools, excellent shopping malls, amazing concert halls and indoor markets such as bric-a-brac.
Locals also enjoy smoked salmon and dried fish. All of these amenities and attractions serve to bring in tourists who come to enjoy activities such as skiing. What this means is that, should you build proper housing in the right locations, your houses will almost always have renters lining up to lease them.
With prevailing peace, a rapidly growing economy and affordable prices, Iceland present amazing opportunities for foreign property investors who dare to look into it as an investment destination. Maybe you should give it a look too.