With the slowdown in the UK property market and the US property market going into reverse, accelerated by the problems over ‘sub prime’ lending, yields and capital returns are diminishing at a rapid rate.

Traditionally, other options such as Spain had often been seen as good alternative but the market has stagnated there too forcing many to seek the much larger returns offered by former Eastern Bloc countries such as Bulgaria, Croatia and Slovenia; and you can still find exceptional value and returns in these countries.

However, for those of you who are prepared to cast their nets further a field you can find even greater returns in less obvious destinations such as India, where in cities such as Mumbai, prices have almost doubled in the last few years on the back of India’s economic boom. Whilst Mumbai is no doubt attractive, prices here are already high and a substantial investment is needed to purchase quality properties. There is though no such potential block in Mongolia and like India is a country ripe for investment and is currently producing commensurate property investment returns.

Mongolia is a country that possesses huge natural resources being particularly rich in copper, gold and oil. With the economic juggernaut of China on its doorstep and its insatiable desire for raw materials, exploitation of these resources has pushed economic growth in Mongolia to almost 8% (projected 8-10% for 2007). The utilization of these mineral deposits has in turn meant that international mining heavyweights such as Rio Tinto Zinc, BHP and Ivanho have established large operational bases, bringing with them substantial numbers of employees including foreign executives, management personnel and engineers. With a shortage of high quality accommodation available and strict planning regulations demand has become very high especially in Ulaan Baatar. This has driven rents rapidly upwards with yields of 15% being achieved and year on year capital appreciation of 30% common. Currently though prices are still reasonably inexpensive with high quality new build 2 bed apartments available for a little over £80,000 allowing the acquisition of a modest portfolio for a reasonable capital outlay and thus making Mongolia one of the best places to invest.

In investing in any country sound advice is always important especially when dealing with unfamiliar laws and legal systems. At ATC Solutions we can assist you with all the stages of your investment planning. We have long established commercial relationships. We can advise on the properties with the best potential as well ease you through the buying and legal processes. We can also provide full investment advice to best enhance and protect your portfolio and with a wealth of international tax experience we can provide detailed tax planning advice.