Canada
According to the Canadian Real Estate Association, property in Canada remains an attractive, capital-appreciating and in-demand commodity which is aided by a mature market offering foreign owners similar free-hold ownership rights as Canadian citizens. This was illustrated by the property market's surprisingly strong start to 2007 with average house prices rising in all major markets surveyed, according to a first quarter report released by Royal LePage Real Estate Services.

The combination of resilient consumer confidence, moderately low interest rates and improved affordability across most of the country led to greater than expected activity, continuing the steady upward trend in property prices enjoyed since the 1980s. An analysis of 17 housing markets across Canada from 1981 to 2006, carried out by RE/MAX, found that price appreciation topped 240 per cent in seven areas including Barrie (372 per cent), St. Catharines (329 per cent), Hamilton-Burlington (325 per cent), Ottawa (297 per cent), Greater Toronto Area (290 per cent), and Greater Vancouver Area and Halifax-Dartmouth (242 per cent increase).

There is also much mountain property on the Canadian market, such as in the Three Sisters resort village in Canmore, which is proving popular with British investors as holidaymakers are looking to the  mountains as the perfect picturesque location for year-round sporting activities

USA
In a country as varied and expansive as the US, property markets differ dramatically from state to state but with Brits being able to get more for their money and even benefit from investment opportunities in booming holiday centres such as Florida, more and more are doing their research and buying across the Atlantic. In recent years lenders in the US have extended mortgage facilities to people interested in purchasing real estate in advance of identifying their dream property and will also lend to overseas buyers. But as interest rates have climbed and the housing market has slumped in the past two years, the number of 'delinquent' loans has soared and house repossessions grown. This housing slump is not all bad news for property buyers, though, as to address the issue, property prices in many areas have dropped and in some instances, such as that in Florida, dramatic property tax cuts proposed. 

Belize
While cumbersome for Europeans to get to, Belize is attracting investment interest from those keen to take the lead from where North American buyers are putting their dollars. The only English-speaking country in Central America, Belize has already established itself as a popular spot for North Americans, who are snapping up property in well developed areas such as the island Ambergris Caye. Undergoing heavy development, Ambergris Caye arguably lacks charm and prices are among the highest in Central America when it comes to dining out. That said, the seasonal influx of vacationing Americans provides an established rental market. Property on the island is more expensive than on the mainland. The Phoenix is a luxury condo resort being built on Ambergris Caye, with prices starting at $452,200 for a two-bedroom unit.

Other areas worthy of consideration include the island Caye Caulker, close to Ambergris Caye. While lacking in beaches it more than makes up for this in charm. Shoes are strictly optional as you wander along the sandy main street which retains the feel of a small island community. The main purchasing opportunities are plots of land on the currently undeveloped North Island.

Guatemala
The Mayan heart of Central America, Guatemala is emerging from a period of turmoil and political instability.  The country lacks the beautiful golden beaches found in other Central American destinations but tourists still visit for its volcanoes and impressive Mayan ruins.

Investors will find Guatemalan property to be cheap but may be frustrated by limited viable locations to purchase in, with Antigua and Lake Atitlan being the two destinations favoured by foreign buyers. Foreigners are able to buy and sell land freely with only a few restrictions but investors should be aware that corruption and crime are still cause for concern.

Honduras
Honduras remains off the beaten track but there are several new developments worth considering in this ex-banana republic. The Bay islands are leading the way, already proving popular with foreign investors. Roatan, 20 miles off the coast of Honduras, is enjoying an increase in tourism visitors attracted by the Caribbean beaches and large barrier reef. The islands' property values have been steadily climbing, making it an appealing prospect.

Panama
If you are after a beach property then you are in luck: With over 1,400 miles of coastline and several islands dotted by coconut palms and surrounded by crystal-clear waters, there are plenty of Panamanian places to choose from. It's no wonder Panama is often described as one of the world's undiscovered paradises. With incentives for retirees and foreign property buyers alongside a strong US-dollar-based economy and cheap living costs, there is a growing expat community and plenty of investors who are keen to take advantage of opportunities in the growth sectors of tourism and retirement.

One of the main property hotspots is the tropical islands of the Bocas del Toro archipelago. It was here that the TV reality series Survivor was filmed, generating a lot of interest from investors in search of their own desert island experience. Resale homes aren't common but there are plenty of new developments in the choice locations. A
20-year moratorium on property tax for new constructions further increases the appeal.  Panama City, the economic hub of the country, is also popular with investors. A city of skyscrapers, the majority of new developments are heading up in a race to be the tallest and most luxurious. Donald Trump is building the Trump Ocean Club, which will house 500 apartments (one-bedroom units start from $250,000). Also underway is the Ice Tower, which will stand at 381 metres tall – making it the tallest tower in Latin America when it is completed in 2010.

Venezuela
One of Central America's smallest countries, Venezuela is also one of the richest with a rapidly growing oil-fuelled economy. The government is aware that the oil won't last forever and are investing heavily in tourism, which should bode well for property investors.

Margarita Island, just off the coast of Venezuela, is popular with British buyers. Tourism to the island is growing, reportedly rising about 12 per cent in 2006. Marina Caribe, in Porlamar, is a development close to one of the many stunning Margarita beaches comprised of studios and one- and two-bedroom apartments. Prices start from £45,000. However, as with any investment buyers must do their homework. Rising property prices are being attributed to insufficient new builds to meet demand, and there have been some warnings that price control on house resales may be imposed. Expropriation of properties and violation of property rights are issues that may also deter investors.

Uruguay
Uruguay is emerging from a recession which saw a huge decline in property value. As the economy recovers prices are rising, gaining attention from overseas buyers. Montevideo, the capital, holds a lot of appeal for buyers and the old town has plenty of fixer-upper opportunities.

Outside the capital, Punta del Este is a popular destination. Property prices are rising with big investments going into luxurious developments. It is still possible to find some prime properties right at the heart of all the action for under $100,000.

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Related articles:
Florida property tax cut
Central American property update
Brit buys own beach in Honduras

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Article published in July 2007