It’s that time of year again when many, especially in the finance sector, will receive a little something extra from their employers in the form of an annual bonus...

Over the past few years these city bonuses have been used by individuals to move up the property ladder and purchase a luxury pad in London or a second home in the country.  However, as the demand for higher end property rises, supply cannot keep up and people are starting to consider investing in property elsewhere, in particular overseas. 

The amount being paid out in annual bonuses continues to rise. If the trend of 13% increase per year continues (£16.5 billion 2004/2005 to £19 billion 2005/2006 – ONS data) it is expected that in the next few months (Dec 06 – April 07) over £21.5 billion will be paid out, over half to those within the financial intermediation sector. But where is best to invest?

Chris Howard, MD of property investment specialist 4:Property comments, “Due to the poor performance of traditional investments such as stocks, bond, shares and pensions I would recommend investing in property overseas. The emerging markets of Eastern Europe have shown substantial capital growth over the past few years and with EU accession on the horizon for Bulgaria and Romania in January 2007 this is set to continue.“

Chris goes on to advise, "A strong investment portfolio should be diverse. It is not wise to place all you eggs in one basket and therefore having a range of property investments will minimise risk.”