South American property hotspot in 2008

South America could emerge as one of the most attractive overseas property hotspots over the next 12 months, according to BuyAssociation magazine.

The property investment experts recommend some of the key economies on the continent for their investment potential, suggesting they could prove "interesting" in 2008.

"From an investment point of view there are a few areas next year. When you look at Latin America there's Panama, which is still quite exciting," said Paul Collins overseas property editor of BuyAssociation.

Foreign source income is not taxable in Panama, which has been attracting high wealth individuals and retirees recently, who also enjoy excellent incentives.

"There is also Belize, where there are a lot of retirement developments. It is also good in terms of having tax advantages," continued Mr Collins.

"The other one that looks very interesting for next year is Argentina. They have just had a change of government, which could bode well too."

Such destinations are also becoming increasingly accessible.

"With South America there are more and more direct flights going there all the time anyway and you also have the US market, which you can rent to, particularly with places like Brazil," continued Mr Collins.

However, established destinations closer to home could also prove alluring in the near future.

"Places like Morocco and some places in central and Eastern Europe will continue to attract investment, particularly because of the holiday market," said Mr Collins.

"Morocco is still a very good investment because properties are at a level which is affordable, especially compared to some parts of Europe," he concluded.