Unless you are a daily Forex trader or a daily stock trader who makes 30% per year, then you may need to invest this amount into a more safe and stable market. Our studies identified the 2 most attractive investments opportunities for 2017.
As you have noticed the dollar appreciated a lot against EURO and GB pound in the last 2 years. The reasons of its appreciation is obvious the divergence between the central banks, FED want to increase interest rates on the other hand ECB reduce interest rates in U.K. the shock of Brexit is done and the depreciation of GBP is over.
Taking into consideration the exchange rate by changing now your $1.000.000 into EURO or GBP the return over the next few years will be at least 15% without doubts, but this is not enough to secure your profits from there you need to move forward and buy a house in the U.K. or North Amsterdam.
A pronounced housing shortage in the UK is expected to keep house prices rising despite the uncertainty created by Brexit and economic headwinds that could result from a Trump presidency.
Housing minister Gavin Barwell told Sky News the government “is set to fail to meet its target to build one million homes by 2020”.
Even that target, which was set last year and equates to 200,000 new homes a year, is below the 250,000 to 300,000 new starts each year that most analysts reckon the UK needs to keep up with demand.
Royal Institute of Chartered Surveyors said house prices rose at the fastest rate in seven months in October and would continue to rise over the next three months as a result of a “dire” shortage of homes for sale.
According to its report, transaction volumes are down as buyer demand is far outstripping the number of new sales instructions, which is currently at an all-time low.
Barwell said the government is currently building about 170,000 homes every year, which he claimed represented an improvement on the rates it inherited in 2010, which were “their lowest since the 1920s,” he said, before adding: “We clearly need to do better.”
Housing market is booming and it will not stop and apart from that the monthly rent in U.K. is one of the highest.
Supposing that you change your $1.000.000 dollar today in GBP you will have 800.000GBP to invest in 2 new built houses giving you a rent of 1500 per month.
The predicted return for a 2 year period will be as follow:
Rent receivable: 72000GBP
house appreciation on a year basis is 7% : 112000GBP
predicted exchange rate of USD/GBP after 2 years 1.45
In 2 years changing back your U.K. investment into USD will be $1.426.000
Why North Amsterdam? This is the question everybody is asking.
In a market where almost half of properties are owned by non-profit corporations, mainly for social housing, there’s just not enough coming on to the market to satisfy buyers. After falling about 14 percent in five years, prices have rebounded recently and are now above pre-crisis levels.
The supply shortage is a hangover from the financial crisis, which restrained new building and led to more families choosing to remain in the city, as it was harder to sell properties at a profit. In the first quarter of 2016, all houses that came on the market were sold, nearly half for more than the asking price. The asking price for an average house rose 5 percent from a month ago in May while it was up 26 percent from a year earlier, the Dutch bureau of statistics said.
Another reason prices continue to skyrocket is that the Netherlands is relatively unique in still allowing buyers to borrow more than the value of the house — no down payment necessary. That means as prices rise, buyers have less of a barrier to entry than in other markets, like London, where the size of a cash down payment is increasingly pushing first-time buyers out of the market.
Add in historically low interest rates, and the convergence of those factors makes Amsterdam not just the hottest market in the Netherlands, but also one of the fastest-growing ones in Europe.
The last 20 years North Amsterdam was less developed that the south Amsterdam. Where almost all businesses, great companies, big banks, clubs and tourist are located. But this is not the real reason of the slowest developing in North Amsterdam than the south. The tow parts of the city are separated by a huge River “AMSTEL” a very well known name for beer lovers.
Because of Amstel river there was no metro to connect north with south, so the people living on the north had to cross the river through a boat traveling back and forward every 15 minutes. This was somehow isolated the people living there and many preferred to buy house on the south than the north. Amsterdam major decide to start building metro connecting north with south and this is why is better to invest now, buying a house in north Amsterdam. Is predicted that the next 2-3 years prices in north Amsterdam will be increase by 30% compare to the 20% increase on the south of the city.
Supposing that you change today $1.000.000 into EURO you will have 926.000 to invest into 2 apartments.
Predicted profit for your north Amsterdam investment in 3 years will be as follow:
rent receivable 144.000euro
appreciation of housing market 278.000
predicted exchange rate of EUR/USD in 3 years 1.20
in 3 years changing back your north Amsterdam investment will be $1.617.000