Tips on Property Investment|The Best Investment Properties Advice
Nov
24
emileleon asked:
I currently own an investment property in Florida and I am looking to sell it. I bought it in 5/2004. I currently rent an apartment in San Francisco and so the only property that I own is that one in Florida.
I currently own an investment property in Florida and I am looking to sell it. I bought it in 5/2004. I currently rent an apartment in San Francisco and so the only property that I own is that one in Florida.
I’m aware of a capital gains tax that you must pay any time you sell an investment property. What I’d like to do is avoid paying this tax if possible. I’ve heard that because it is my only property, it does not qualify as an investment property and so I wouldn’t have to pay this capital gains tax.
Is this true?
Bernice
Nov
22
Filed Under (Property Investment Advice) by admin
Sacha Tarkovsky asked:
When buying overseas property for investment you need to consider a number of factors which include: The countries stability, future economic growth and housing values at the present time i.e are they undervalued or over valued.
Here we are going to look at an overseas property investment that offers outstanding capital growth potential and low risk.
A recent survey by “A Place in the Sun”, the popular UK property program named Slovenia in its top 20 Places to Make Money in property.
With entry prices at around $50,000 and growth rates of 30 – 40% per annum savvy overseas property investors are buying property in Slovenia as a long term investment.
If you are looking at overseas property investment Slovenia has a lot to offer being relatively in expensive and with great potential for growth due to a combination of factors that are outlined below.
1. The Slovenian Economy is Growing
One of the newest members of the EU Slovenia has cemented its position as the best performing economy of the new member states.
Macroeconomic policies have seen Slovenia achieve and sustain robust growth, with small external imbalances and public debt, while at the same time lowering inflation and interest rates to estbalished euro area levels.
EU entry has increased trade and intensified growth and this has been reflected in per capita incomes reaching about 80 percent of EU-average in 2006.
2. Geography
Slovenia is small and is around half the size of Switzerland.
It has borders with Austria, Croatia, Hungary and Italy.
It is conveniently located for both trade and tourism with much of Europe, with good transport links and infrastructure.
3. Diversity Of Attractions
Whether you want a pure overseas investment property to generate capital growth and income, or a holiday home, Slovenia property has a lot to offer.
The country features stunning mountains, beautiful lakes, dense forests, as well as vibrant cities and a bustling capital – Ljubljana.
Ljubljana features beautiful baroque architecture and has been compared in appearance to Prague.
The capital has become a firm favorite with property investors who are taking advantage of growth rates of 30 – 40% per annum. The city is growing and land development is lagging behind, demand due to stringent and strict planning laws.
There are many places to buy in property in Slovenia and these are covered in our other articles, but if you are looking for a low risk overseas property investment, with good potential for growth, you should take a look at Slovenia property investment and you may be glad you did.
Sheila
When buying overseas property for investment you need to consider a number of factors which include: The countries stability, future economic growth and housing values at the present time i.e are they undervalued or over valued.
Here we are going to look at an overseas property investment that offers outstanding capital growth potential and low risk.
A recent survey by “A Place in the Sun”, the popular UK property program named Slovenia in its top 20 Places to Make Money in property.
With entry prices at around $50,000 and growth rates of 30 – 40% per annum savvy overseas property investors are buying property in Slovenia as a long term investment.
If you are looking at overseas property investment Slovenia has a lot to offer being relatively in expensive and with great potential for growth due to a combination of factors that are outlined below.
1. The Slovenian Economy is Growing
One of the newest members of the EU Slovenia has cemented its position as the best performing economy of the new member states.
Macroeconomic policies have seen Slovenia achieve and sustain robust growth, with small external imbalances and public debt, while at the same time lowering inflation and interest rates to estbalished euro area levels.
EU entry has increased trade and intensified growth and this has been reflected in per capita incomes reaching about 80 percent of EU-average in 2006.
2. Geography
Slovenia is small and is around half the size of Switzerland.
It has borders with Austria, Croatia, Hungary and Italy.
It is conveniently located for both trade and tourism with much of Europe, with good transport links and infrastructure.
3. Diversity Of Attractions
Whether you want a pure overseas investment property to generate capital growth and income, or a holiday home, Slovenia property has a lot to offer.
The country features stunning mountains, beautiful lakes, dense forests, as well as vibrant cities and a bustling capital – Ljubljana.
Ljubljana features beautiful baroque architecture and has been compared in appearance to Prague.
The capital has become a firm favorite with property investors who are taking advantage of growth rates of 30 – 40% per annum. The city is growing and land development is lagging behind, demand due to stringent and strict planning laws.
There are many places to buy in property in Slovenia and these are covered in our other articles, but if you are looking for a low risk overseas property investment, with good potential for growth, you should take a look at Slovenia property investment and you may be glad you did.
Sheila
Nov
18
jim jones asked:
My fico scores are above 700. I am 25 and I want to buy my first home, and another property as an investment property. how can I do it at the same time? I plan on getting a no doc loan for both. I’m new to the real estate industry, and just looking for a few more answers than the ones I’ve gotten from brokers.
Eric
My fico scores are above 700. I am 25 and I want to buy my first home, and another property as an investment property. how can I do it at the same time? I plan on getting a no doc loan for both. I’m new to the real estate industry, and just looking for a few more answers than the ones I’ve gotten from brokers.
Eric
Nov
17
Filed Under (Property Investment Advice) by admin
Uniquelikeu asked:
For about 3 year I have an investment property purchased under 1031 exchange. Next year I plan to make that as my primary residence (because it very near my job). If after living there for 2 years, I sell it, how will it be treated for taxation purpose?
Scott
For about 3 year I have an investment property purchased under 1031 exchange. Next year I plan to make that as my primary residence (because it very near my job). If after living there for 2 years, I sell it, how will it be treated for taxation purpose?
Scott
Chris E asked:
I have an investment property abroad, and it is cashflow negative. I’ve heard that I can only write off deductions on my US tax at sale, not annually like I would if it were a US property. Can I write off these deductions on my US income tax?
Lillian
I have an investment property abroad, and it is cashflow negative. I’ve heard that I can only write off deductions on my US tax at sale, not annually like I would if it were a US property. Can I write off these deductions on my US income tax?
Lillian
Nov
16
Filed Under (Property Investment Advice) by admin
Andrew Stratton asked:
An investment property loan enables an individual to begin speculating in real estate. This type of mortgage can be used for many different investing methods, including buying residential investment property; however, it cannot be used for business purposes.
The significant factors involved in determining, whether a borrower is eligible for an investment mortgage, are income, income to debt ratio, and credit score. The interest rate can vary depending on the credit score of the borrower, the lender and the real estate involved. The better the credit score, the more likely the interest rate would be lower, which would make the venture more profitable.
Furthermore, the borrower should conduct a significant amount of research, in terms of online advertisements and speaking to brokers. Securing the appropriate loan is as important as finding the best investment real estate since there are a plethora of offers available.
How is a loan useful?
Residential investment is defined as the real estate not inhabited by the owner but purchased to generate income, in terms of rent or capital gain.
Again, determining the most profitable real estate requires thorough research, which should include information regarding the future and the present condition of the neighborhood and the location.
Some points to consider are whether there has been an increase in the opening of businesses and whether the value is comparable to that of real estate in similar neighborhoods. The buyer should also review the amount of expenses involved in maintenance in contrast to the income that is generated.
After determining the appropriate real estate for the buyer, starting funds of at least 10% of the value is usually necessary to begin the process.
Therefore, a property loan is very useful to the buyer. There are also loans that could finance 100% of the project.
Residential investment property tends to be more lucrative than commercial due to both rent and capital gains. Furthermore, refinancing the mortgage is possible by either increasing the term of your loan or lowering the interest rate on the loan, can be used to further increase the cash flow from your venture.
This type of cash-out refinance can be used for further improvements or to continue investing in other properties. Tax brackets can also aid in retaining more profit.
In all, the return of a residential investment property is determined not only by the type of property, but the type of financing used is also important. Thorough research before purchase may be aided by property investment software.
Margaret
An investment property loan enables an individual to begin speculating in real estate. This type of mortgage can be used for many different investing methods, including buying residential investment property; however, it cannot be used for business purposes.
The significant factors involved in determining, whether a borrower is eligible for an investment mortgage, are income, income to debt ratio, and credit score. The interest rate can vary depending on the credit score of the borrower, the lender and the real estate involved. The better the credit score, the more likely the interest rate would be lower, which would make the venture more profitable.
Furthermore, the borrower should conduct a significant amount of research, in terms of online advertisements and speaking to brokers. Securing the appropriate loan is as important as finding the best investment real estate since there are a plethora of offers available.
How is a loan useful?
Residential investment is defined as the real estate not inhabited by the owner but purchased to generate income, in terms of rent or capital gain.
Again, determining the most profitable real estate requires thorough research, which should include information regarding the future and the present condition of the neighborhood and the location.
Some points to consider are whether there has been an increase in the opening of businesses and whether the value is comparable to that of real estate in similar neighborhoods. The buyer should also review the amount of expenses involved in maintenance in contrast to the income that is generated.
After determining the appropriate real estate for the buyer, starting funds of at least 10% of the value is usually necessary to begin the process.
Therefore, a property loan is very useful to the buyer. There are also loans that could finance 100% of the project.
Residential investment property tends to be more lucrative than commercial due to both rent and capital gains. Furthermore, refinancing the mortgage is possible by either increasing the term of your loan or lowering the interest rate on the loan, can be used to further increase the cash flow from your venture.
This type of cash-out refinance can be used for further improvements or to continue investing in other properties. Tax brackets can also aid in retaining more profit.
In all, the return of a residential investment property is determined not only by the type of property, but the type of financing used is also important. Thorough research before purchase may be aided by property investment software.
Margaret
Nov
16
Sacha Tarkovsky asked:
Some people make money in some overseas property investments but lose.
No matter how good the country looks as a whole, you have to have the right location and the one below can give you potential triple digit gains.
Lets look at the region and the country.
Costa Rica has been a favorite overseas property investment location for Americans in particular for years and although many have made great profits many have not and this has been down to location.
The central pacific coast in Costa Rica is a great choice for any investor and is arguably the best in Costa Rica for both buyers of overseas property, for investment or second or holiday homes.
A safe choice for overseas property investment
The central pacific coast of Costa Rica offers fantastic potential returns on investment, without the risk of buying an up and coming region or country. It’s a “safe” option and one where the risk/ reward has been and will remain favorable.
The Region
The Central Pacific is a narrow coastal strip surrounded by the jungle, mountains and spectacular beaches.
Here are three destinations in the region that property purchased around can on past performance give you a great lifestyle as well as great investment returns and the outlook for future gains looks good.
Jacó
Jacó sits to the north and close to the capital San José making is just 30 minutes from San José, and about 7 south of the beautiful wildlife reserve, Reserva Biológica Carara.
The town boasts fantastic hotels and a great nightlife and is popular with both locals and overseas buyers.
The town is a mixture of older holiday makers from aboard and a younger energetic surfing community.
The landmark Los Suenos Marriott Beach and Golf Resort, at Playa Herradura, offers a 250 birth marina an 18-hole golf course, all with stunning beachfront views.
Capital Growth potential
The Los Suenos Resort shows the potential of buying overseas property here.
The hotel pre sold 50 condos of 2000 square feet for $250,000.
The next year another fifty were sold at $350,000.
The next year end units were sold at $450,000 increasing up $850,000.
Another example more modest example but still with fantastic gains:
Investors that purchased $30,000 of property in Jaco 15 years ago have property worth $750,000 now.
The region remains popular and further capital gains look like being made by investors over the coming years as its established, has great infrastructure and is beautiful.
It looks to remain popular and this means buying in around the area as it expands will see great profits
Quepos
7 kilometers up the coast from Manuel Antonio, is the sport fishing capital of Central America.
Quepos and is considered one of if not the best places for sport fishing in the world and is also has a growing number of surfers visiting it. South of Quepos are spectacular beaches present some of the country’s most breathtaking ocean views.
The area also boasts an expansive coral reef, backed by a protected rain forest, and the beaches of Manuel Antonio offer visitors beach, surf, beauty and great infrastructure.
Dominical
A small fishing community beside the mouth of the Río Barú is now one of Costa Rica’s major surfing destinations.
Around 5 miles north of Dominical are the Nauyaca Falls, a popular destination for holidaymakers
The falls are composed of two cascades, falling 200 feet into a warm-water pool and these falls are just two hours away.
Why this area looks great for investment
Unlike many other areas of Costa Rica it not just beautiful it offers the comforts of home with great facilities and that is why it is so popular with Americans and other buyers.
The area continues to see significant building in around the above towns and more is expected buying property here is a sound investment and future growth looks good.
Keep this important fact in mind!
People tend to think the best bargains to be had in overseas property are in up and coming or emerging areas but many of these simply fizzle out leaving investors with losses.
By all means be a pioneer and we know some got rich but most got the arrows! The above area is for people wanting a great lifestyle combined with great risk reward on their property.
Check out the area in more detail and you may be glad you did!
Regina
Some people make money in some overseas property investments but lose.
No matter how good the country looks as a whole, you have to have the right location and the one below can give you potential triple digit gains.
Lets look at the region and the country.
Costa Rica has been a favorite overseas property investment location for Americans in particular for years and although many have made great profits many have not and this has been down to location.
The central pacific coast in Costa Rica is a great choice for any investor and is arguably the best in Costa Rica for both buyers of overseas property, for investment or second or holiday homes.
A safe choice for overseas property investment
The central pacific coast of Costa Rica offers fantastic potential returns on investment, without the risk of buying an up and coming region or country. It’s a “safe” option and one where the risk/ reward has been and will remain favorable.
The Region
The Central Pacific is a narrow coastal strip surrounded by the jungle, mountains and spectacular beaches.
Here are three destinations in the region that property purchased around can on past performance give you a great lifestyle as well as great investment returns and the outlook for future gains looks good.
Jacó
Jacó sits to the north and close to the capital San José making is just 30 minutes from San José, and about 7 south of the beautiful wildlife reserve, Reserva Biológica Carara.
The town boasts fantastic hotels and a great nightlife and is popular with both locals and overseas buyers.
The town is a mixture of older holiday makers from aboard and a younger energetic surfing community.
The landmark Los Suenos Marriott Beach and Golf Resort, at Playa Herradura, offers a 250 birth marina an 18-hole golf course, all with stunning beachfront views.
Capital Growth potential
The Los Suenos Resort shows the potential of buying overseas property here.
The hotel pre sold 50 condos of 2000 square feet for $250,000.
The next year another fifty were sold at $350,000.
The next year end units were sold at $450,000 increasing up $850,000.
Another example more modest example but still with fantastic gains:
Investors that purchased $30,000 of property in Jaco 15 years ago have property worth $750,000 now.
The region remains popular and further capital gains look like being made by investors over the coming years as its established, has great infrastructure and is beautiful.
It looks to remain popular and this means buying in around the area as it expands will see great profits
Quepos
7 kilometers up the coast from Manuel Antonio, is the sport fishing capital of Central America.
Quepos and is considered one of if not the best places for sport fishing in the world and is also has a growing number of surfers visiting it. South of Quepos are spectacular beaches present some of the country’s most breathtaking ocean views.
The area also boasts an expansive coral reef, backed by a protected rain forest, and the beaches of Manuel Antonio offer visitors beach, surf, beauty and great infrastructure.
Dominical
A small fishing community beside the mouth of the Río Barú is now one of Costa Rica’s major surfing destinations.
Around 5 miles north of Dominical are the Nauyaca Falls, a popular destination for holidaymakers
The falls are composed of two cascades, falling 200 feet into a warm-water pool and these falls are just two hours away.
Why this area looks great for investment
Unlike many other areas of Costa Rica it not just beautiful it offers the comforts of home with great facilities and that is why it is so popular with Americans and other buyers.
The area continues to see significant building in around the above towns and more is expected buying property here is a sound investment and future growth looks good.
Keep this important fact in mind!
People tend to think the best bargains to be had in overseas property are in up and coming or emerging areas but many of these simply fizzle out leaving investors with losses.
By all means be a pioneer and we know some got rich but most got the arrows! The above area is for people wanting a great lifestyle combined with great risk reward on their property.
Check out the area in more detail and you may be glad you did!
Regina
Nov
14
mrs p asked:
We want to buy an investment property in Western Australia. We know that in Hedland and Karratha the returns are at about 10%. Probably not much potential for capital growth though, especially in Karratha. Are there any other area’s with these rental returns? Are there better options than Hedland and Karratha? Any other thoughts??
Maurice
We want to buy an investment property in Western Australia. We know that in Hedland and Karratha the returns are at about 10%. Probably not much potential for capital growth though, especially in Karratha. Are there any other area’s with these rental returns? Are there better options than Hedland and Karratha? Any other thoughts??
Maurice
Nov
14
Filed Under (Property Investment Advice) by admin
K Damian Qualter BA MBA asked:
Property In Glasgow
Owning property in the City of Glasgow is now more exciting than ever. This is due to capital infusion in the area as well as significantly increased property investment in Glasgow, by private, individual investors, developers and other interest groups.
There are a wide variety of choice property in Glasgow available is described by many, as a lively and cosmopolitan place to be, with the pulse of a modern-European city at its core. The real estate market is no exception to this rule.
From properties with a strong Victorian, historically-inspired architecture and numerous new developments, refurbishments by developers in the area, investors have the opportunity to profit and benefit from this reshaping and rekindling of the gentle spirit of this age-old UK city.
For many Glasgow has become the place of choice to visit, live and work. Boasting good shopping outside London and a lively inspirational nightlife, as well as many tourist attractions like museums, art and science centers, Glasgow is fast becoming a realtor and property investment paradise.
Planning, development and regeneration is at the top of the business headlines in the area, including mix-use, retail and residential projects. This opens a whole cadre of possibilities for private investors, syndicates and groups to capitalize on. Edinburgh and Glasgow are both considered, property and development hot spots.
Glasgow Cross is a good example of one such project. This is a £40million mixed-use regeneration development project by a major developer and property management company, in-progress. It consists of 18,000sq ft of retail space and 170 two and three bedroom luxury apartments with parking. Merchant City and the shopping Mecca on Argyle Street (only second to London for retailers) infuses the local market.
It is easy to see the potential here, what was once an older, somewhat quiet or run-down part of the city can instantaneously be revived with lots of investment property and opportunities up for grabs. Mixed residential/retail type configurations in ‘downtown’ Glasgow has now become a reality. Whether you plan to live there yourself or merely invest in Glasgow property for income purposes, it has lots to offer.
If you have always dreamt of owning a piece of Scotland yonder, then there is no time like the present to act! It has lots to offer. With lots of in-town property solutions and investment opportunities in residential serviced apartments, short lets, corporate accommodation and housing, new homes and mix-use developments that seems to be the newest trend for modern, contemporary lifestyles and city-living.
Unique ambience awaits you in this nuanced city and a real sense of community, with some pitting it as the best place to live outside of London, your smart investment decision to invest in property in Glasgow, is sure to reap you in some growth and profit over the next few years to come. This reputation alone, not even counting on the tourist traffic and business enterprise and travelers through this area, will all contribute to raised property values and the perfect time to invest before the wave or opportunity and profits to be had, crests.
From apartments in the heart of Glasgow, to homes and low-rises on its outskirts, there are something to suit every budget, preference and taste. Flats for rent, auction sales and properties, Glasgow harbor and city core add to the variety, with lots of parks and restaurants around to mingle and linger in, many will exercise their option to stay, relocate, work of visit the heart of Scotland, every opportunity they can or have. For investors this opens a plethora of opportunity.
Jeff
Property In Glasgow
Owning property in the City of Glasgow is now more exciting than ever. This is due to capital infusion in the area as well as significantly increased property investment in Glasgow, by private, individual investors, developers and other interest groups.
There are a wide variety of choice property in Glasgow available is described by many, as a lively and cosmopolitan place to be, with the pulse of a modern-European city at its core. The real estate market is no exception to this rule.
From properties with a strong Victorian, historically-inspired architecture and numerous new developments, refurbishments by developers in the area, investors have the opportunity to profit and benefit from this reshaping and rekindling of the gentle spirit of this age-old UK city.
For many Glasgow has become the place of choice to visit, live and work. Boasting good shopping outside London and a lively inspirational nightlife, as well as many tourist attractions like museums, art and science centers, Glasgow is fast becoming a realtor and property investment paradise.
Planning, development and regeneration is at the top of the business headlines in the area, including mix-use, retail and residential projects. This opens a whole cadre of possibilities for private investors, syndicates and groups to capitalize on. Edinburgh and Glasgow are both considered, property and development hot spots.
Glasgow Cross is a good example of one such project. This is a £40million mixed-use regeneration development project by a major developer and property management company, in-progress. It consists of 18,000sq ft of retail space and 170 two and three bedroom luxury apartments with parking. Merchant City and the shopping Mecca on Argyle Street (only second to London for retailers) infuses the local market.
It is easy to see the potential here, what was once an older, somewhat quiet or run-down part of the city can instantaneously be revived with lots of investment property and opportunities up for grabs. Mixed residential/retail type configurations in ‘downtown’ Glasgow has now become a reality. Whether you plan to live there yourself or merely invest in Glasgow property for income purposes, it has lots to offer.
If you have always dreamt of owning a piece of Scotland yonder, then there is no time like the present to act! It has lots to offer. With lots of in-town property solutions and investment opportunities in residential serviced apartments, short lets, corporate accommodation and housing, new homes and mix-use developments that seems to be the newest trend for modern, contemporary lifestyles and city-living.
Unique ambience awaits you in this nuanced city and a real sense of community, with some pitting it as the best place to live outside of London, your smart investment decision to invest in property in Glasgow, is sure to reap you in some growth and profit over the next few years to come. This reputation alone, not even counting on the tourist traffic and business enterprise and travelers through this area, will all contribute to raised property values and the perfect time to invest before the wave or opportunity and profits to be had, crests.
From apartments in the heart of Glasgow, to homes and low-rises on its outskirts, there are something to suit every budget, preference and taste. Flats for rent, auction sales and properties, Glasgow harbor and city core add to the variety, with lots of parks and restaurants around to mingle and linger in, many will exercise their option to stay, relocate, work of visit the heart of Scotland, every opportunity they can or have. For investors this opens a plethora of opportunity.
Jeff
Nov
12
Filed Under (Property Investment Advice) by admin
Sacha Tarkovsky asked:
Overseas property investment can produce huge gains of 30 -1oo% annual gains but as we all know with reward goes risk.
Here we are going to look at getting 30% + annual profit potential while keeping risk to a fraction of a percent.
How can this be done? Let’s find out.
Risk locking in the value
Firstly let’s look at the risk and there is a way to lock in the value of your property for a small payment.
There are companies that will lock in the value of the property that you purchase at and you can sell the property to them at this lock in price, if the price goes down.
For example, you buy a property for $100,000 and the market values it at 70,000 you can then sell it back for $100,000. If the property rises then you have the profit and all you have lost is a small lock in payment.
The advantage here is you lock in risk at a pre set level for a small payment (your maximum loss) and still have huge upside potential.
This is a huge advantage for property investors who have exposure to swings in high return high risk overseas property markets.
Getting the best reward
Now you have a small risk let’s turn that into a big upside reward. So what guidelines should you adhere to when purchasing overseas property for maximum gains
1. Pick an established market
These tend to have a trend in motion and you have great profit potential of 30 – 100% if you get the right location.
2. The best locations
Tend to be near established areas that are popular with both local and foreign investors, or near building of infrastructure roads, marina’s etc that will attract building
3. Safety
You need to make sure that the laws are not unfavorable to foreign investors and you get the same rights as residents.
Good locations?
An example of a good location is Costa Rica.
For example a $30,000 pound building bought near the town of Jaco 15 years ago, is worth as much as $750,000 today and prices are still rising as foreign investment pours.
Investors are taking advantage of beach front property that is 70% less than in Florida in a country just a 3 hour direct flight from the USA.
Add in a stable country, where buying is easy and you get the same rights as residents and you can see why Americans continue to buy in record numbers. Finally, its beautiful as well!
This is just one example but there are many others of booming overseas markets that offer far better returns than the USA, Where interest rate hikes are biting into property values.
Consider this:
For a small annual payment of well below a percent you lock in the value of a property and you also know many overseas markets can make 30 – 100% annually, so the risk reward is fantastic.
You can also afford to try more risky high return markets, we have used Costa Rica as a good solid example, but you can afford to take a risk as you have a lock in value.
The ability to lock in values and seek profits in the high return overseas property market, means that you have an investment with a risk reward that is simply fantastic.
Amy
Overseas property investment can produce huge gains of 30 -1oo% annual gains but as we all know with reward goes risk.
Here we are going to look at getting 30% + annual profit potential while keeping risk to a fraction of a percent.
How can this be done? Let’s find out.
Risk locking in the value
Firstly let’s look at the risk and there is a way to lock in the value of your property for a small payment.
There are companies that will lock in the value of the property that you purchase at and you can sell the property to them at this lock in price, if the price goes down.
For example, you buy a property for $100,000 and the market values it at 70,000 you can then sell it back for $100,000. If the property rises then you have the profit and all you have lost is a small lock in payment.
The advantage here is you lock in risk at a pre set level for a small payment (your maximum loss) and still have huge upside potential.
This is a huge advantage for property investors who have exposure to swings in high return high risk overseas property markets.
Getting the best reward
Now you have a small risk let’s turn that into a big upside reward. So what guidelines should you adhere to when purchasing overseas property for maximum gains
1. Pick an established market
These tend to have a trend in motion and you have great profit potential of 30 – 100% if you get the right location.
2. The best locations
Tend to be near established areas that are popular with both local and foreign investors, or near building of infrastructure roads, marina’s etc that will attract building
3. Safety
You need to make sure that the laws are not unfavorable to foreign investors and you get the same rights as residents.
Good locations?
An example of a good location is Costa Rica.
For example a $30,000 pound building bought near the town of Jaco 15 years ago, is worth as much as $750,000 today and prices are still rising as foreign investment pours.
Investors are taking advantage of beach front property that is 70% less than in Florida in a country just a 3 hour direct flight from the USA.
Add in a stable country, where buying is easy and you get the same rights as residents and you can see why Americans continue to buy in record numbers. Finally, its beautiful as well!
This is just one example but there are many others of booming overseas markets that offer far better returns than the USA, Where interest rate hikes are biting into property values.
Consider this:
For a small annual payment of well below a percent you lock in the value of a property and you also know many overseas markets can make 30 – 100% annually, so the risk reward is fantastic.
You can also afford to try more risky high return markets, we have used Costa Rica as a good solid example, but you can afford to take a risk as you have a lock in value.
The ability to lock in values and seek profits in the high return overseas property market, means that you have an investment with a risk reward that is simply fantastic.
Amy
