■ Although originating in the USA, the North Atlantic debt crisis has been amplified in Europe by the subsequent severe impacts on housing markets.
■ This presents a dilemma for investors, with euro-denominated assets appearing cheap by international standards but currency and economic risk weighs against this lure.
■ It is telling that some of the more buoyant international markets in recent years have been non-euro (UK and Switzerland) but increasing numbers of buyers are being attracted by cheap prices and stabilising economies into some markets.
■ Performance will be highly dependent on economic performance in future, not just entry price. Careful attention therefore needs to be paid to economic forecasts and the prospects of population growth and other demand factors in specific jurisdictions and cities, even neighbourhoods, if the gems are to be sifted from the rocks.