Why property investment?
Investors have consistently invested in property as it has historically proven to be one of the most reliable options for investment and can offer lucrative returns.
The Foreign and Commonwealth Office estimates that around 13 million British nationals live abroad, with recent research from the Office of National Statistics (ONS) suggesting that 350,000 people are moving abroad every year.
"Historically proven to be one of the most reliable options for investment and can offer lucrative returns"
With the ease of travel via budget airlines and Open Skies Policies combined with increasing levels of holiday makers booking private rental accommodation it has never been a better time to consider an overseas holiday home as an investment.
No other investment allows such flexibility in terms of staging payments or the ability to financially gear. Gearing enables an investor to enjoy the benefits of returns based upon the full asset value having invested a much smaller percentage.
Equities or stocks can be volatile, but long-term property investment is historically stable. That might explain why 50% of individuals on "The Times Rich List" made their money through property investment.
The process
Getting in at the early stages of a development and buying off plan can be an extremely attractive proposition, with an excellent potential return on investment. We have numerous satisfied clients who have bought either to realize a quick return on their money or as a way of securing their holiday home at the best possible price.
Choose the right hotspot area, the right development and the best payment plan and the growth on your capital will be very strong.
The general rule of thumb is that the development will have 3 to 4 price increases during construction of between 4 to 10%. Increases are likely to take place for example when the foundations are in place, the walls go up, the roof goes on, when a certain amount is sold and finally when the development is finished off and there is something tangible to sell.
So when you buy off plan you not only benefit from the general market increase over the build time (say 2years) and beyond but also the price increases that relate to the phase of the development.
Looking at a very conservative market increase of 15% over 2 years plus 3 price increases of 4% during construction time of 2 years which compounds to 12%, the total increase over the original purchase price is a very healthy 27%, yet because of a favourable payment plan only part of the finance has been used so the true return on investment is considerably greater.
In order to maximize your investment its important to identify the current low cost growth areas, the developments that represent the best value for money and that will increase in value the most. This is where our knowledge and expertise of the trends and future developments within the global market is invaluable. We will advice on where and when to buy and more importantly when to sell.
