Keeping a head

In the current world property market, there have been many up and downs, but mainly the latter in recent times. For investors in property, this may pose a range of questions. Does a fall in prices mean the market is a busted flush, a bubble that burst? Or are falls in prices simply a consequence of the general world economic and property downturn from which almost nowhere is immune? If so, there may be many bargains to be had for people who will be able to enjoy the fruits of their investments in years to come as the market picks up and values rise again.

Summarising the way the world property market is now, chief executive of the Association of International Property Professionals Paul Owen told the Daily Mail this month: "There's a lack of confidence in some aspects of the market, but equally it can be a great time to buy."

For those looking to invest on Santiago, such thoughts may be highly attractive, with the paper stating that Cape Verde has plenty of bargains. But with such thoughts came a word of caution from Mr Owen. He stated: "However, people shouldn't lose their heads and forget the basic rules of safe buying abroad. It is a great time for them to assert their power by only buying from those agents and developers who offer them protection."

A number of measures can be undertaken by investors, he said. Lawyers and financial advice should be independent. Get testimonials about developers and professionals. Those looking for off-plan developments can protect themselves in case a developer goes bust by getting their lawyer to hold the deposit in a third-party account.

For those investing on Cape Verde, such measures could be very wise. One factor that the archipelago may have in its favour is the continued development of its infrastructure, a point noted last month by Paul Collins, the property editor for BuyAssociation.

He said the advantage of this is that "in terms of Overseas property it tends to be that people like to buy within an hour's drive of an international airport", something that developments such as new roads will help to facilitate, making existing properties and ones yet to be built closer to where they need to be to attract investors.

Location, of course, is a key word for property investors. Buying in the right place for transport - as well as a range of other issues like access to local amenities, the proximity of the beach and so on - may be obvious common sense. But as Mr Owen warned of the dangers of a "gold rush" mentality, it is important that investors think of this as well as all the other matters raised.

This article has been brought to you be Sambala; the developer for Cape Verde Property.

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