Investment Property Tips

1. Draw up a list of the top 5 items your new property should have.
2. Be sure to distinguish between the type of property that you like and the type of property that is a good investment as they may not be the same.
3. Know your budget and stick to it. Do not be tempted above the budget that you have set yourself.
4. Use a company you feel comfortable and confident with.
5. If you are looking for capital growth, always ensure you base your projected growth on the lowest previous value.
6. If you looking at a rental opportunity or a great holiday home, then obtain as much information as possible on potential rental income. Then contrast this to all the monthly costs.
7. If buying off plan insist on regular updates from developer.
8. Impartial Independent Advice is important so as to maximize the potential for wealth creation and wealth preservation
9. The old saying of Location, Location, Location!!
10. Avoid one of a kind property. Unless you're working with a large amount of capital and can afford to have a hard-to-sell property, resist the temptation to invest in truly unique structures. While this kind of property can be very enticing, it will appeal to a much smaller market.
11. Never sign a contract that you do not understand (for example - if it is in a foreign language).
12. Ensure you do not inherit a debt on the property before you purchase, which a solicitor should be able to check - ie: If the developer has borrowed money to build the development and this amount has been allocated against each plot as additional security to the developer's bank.
13. If you are arranging finance on the property, ensure that this is stated in any contract and you have an 'opt-out clause' if the loan is not agreed (which will ensure any deposit paid is refunded).
14. Try to arrange your mortgage finance 'in principle', before agreeing to purchase the property, or before signing any contracts and paying over a deposit.
15. Arrange your mortgage in the currency that you earn in where possible, unless you are going to receive rental income from that property in the local currency and then this may be a possible alternative option, dependent on the lender's criteria.
16. Think about combining your cash with friends or family: it could bring a Villa with pool within your financial reach, rather than simply an Apartment.
17. The real key to why buying Off-Plan can be such a good investment lies in the fact that normally you only have to pay approximately 30% of the purchase price as a deposit and then often nothing until completion of the property, when the rest can be financed on a 70% mortgage
18. Capital returns vary according to the market in which we invest ranging from a conservative 11% annual growth in the UK over the last 10 years to 30-50% annual growth further a field in destinations like Dubai and Morocco. Therefore careful consideration should be given to your investment location.