Real Estate Information |
What to Look Out For When Buying Off Plan
Buying Off Plan It can be difficult to decide when every deal seems to be not to be missed! There are some key things I look for when buying off plan, whether it's in the UK or abroad it makes no difference. The property must be good value now ie it compares favourably with similar properties today, and is not based on properties going up in value 10% each of next 2-3 years. Supply and demand - this is vital. What is current supply and demand? What will it be when complete? If market is already looking saturated now, will it be any different in 2 years? What development is planned in area in the meantime? Market forces - will demand grow? Decline? Who is the market? Young professionals, holiday makers? Interest rates - what are current interest rates? Are they likely to go up/down? Tax efficient/costs - Tax can often be your biggest expense. What are property taxes like in the country looking to invest in? What is most tax efficient way to buy ie joint names, limited company? What are other taxes like? Eg Capital gains tax, wealth tax, inheritance tax, income tax. Location - obvious?! One development may be 20% cheaper than another, why is that? Which will go up in value by more? What attractions/amenities are there now/will be there on completion? Payments - what is payment structure? Is this best way to leverage your money? Independent lawyer - would always get an independent lawyer from the developer. Once have a good lawyer can trust, stick with them! Does price cover everything? - eg air conditioning, swimming pool, car parking? What is economic situation in country? What is likely to be over next 18 months-2 years? Is it stable? What is size of development? What is the build quality like? What is the size of developer? Are they likely to go bust? If they go bust is your money secure? How long have they been around for? Will the developer keep in contact during build period? Will they help with your strategy/exit strategy? Exchange rates? If have bought in a foreign currency, what is likelihood of changes in exchange rates? Can you minimise the risk? And once have asked all these questions should help form an answer!! As with any property purchase, you should be pleased with the value when you buy, and also have an idea of the way the market is going over the build time - you do not want to have a BTS strategy and get to completion date to find out no-one wants to buy your property at the price you hoped for, as supply outweighs demand, or get hit with higher tax bill than expected. Or go in with a BTL strategy and then find out yields are much lower than you need to cover costs. This may seem obvious, but many people make these mistakes. Alan Forsyth is a full time property investor and developer with 10 years experience in UK and overseas. He is managing director of http://www.property-investment-tips.com which offers free independent advice and tips on property investment, courses, countries, strategies, mortgages and much more - with a free newsletter every 3 weeks giving latest tips and offers to over 500 investors. Sign up today at the site for free independent advice!
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Real Estate Investing Is A Better Gamble Than The Lottery Real estate investing begins when you move to the starting point.Get ready. Real Estate Business Starting real estate business is not that simple. Multiple aspects of stable business should be considered before you invest even 1$ in real estate. Nobody Loves A Landlord The typical landlord starts off life as a lighthearted real estate investor. The investor isbrimming with enthusiasm and is determined toacquire some single family homes that will beattractive to renters. Selling Your Home: 5 Deal Killers That Are Lurking In Older Homes You've listed your home for sale, you have a Buyer and now their Inspector is performing an inspection. You think you have a pretty good home, but do you really know for sure? What is he finding? Why is it taking so long? Here are 5 deal killers to watch out for when selling your home. Realty Agents: Don't Ask Don't Tell? Real estate stories radiate from the water cooler and cocktail parties like a brush fire out of control. Like early stages of fires, real estate transactions start out manageable, but occasionally real estate consumers fan the flames because of inexperience, and some real estate agents misplace the water buckets. California Home Seller Disclosure Duties Property Condition - Seller's What to Expect During the Inspection ProcessThe Transfer Disclosure Statement (T.D. Tenant/Buyers Have Multiple Options Lease Purchasing affords the tenant/buyer a wonderful opportunity to get into a home today, that he or she can buy tomorrow. But what options are available at the end of the contract? Fortunately, Lease Purchasing provides multiple options here also. Make Money With Room Rentals I don't know why I didn't do it sooner, but one day many years ago, I decided to try renting rooms in my home. I was young and single, and had a nice mobile home on small piece of property. Cutting Edge Real Estate, Is the Bubble Ready To Burst? Of course, this is the big question in real estate now. . Property Investing Secrets 6 Property Investing Secrets:What No One Ever Tells You-How Real Estate Agents Size Up BuyersHere is the most important rule you must know about property investing: present yourself with confidence to the real estate agent. If you're property investing and trying to buy your first property and you have never really dealt with a real estate agent, you're probably not going to get a bargain. Atlanta Georgia Real Estate - Marietta - East Cobb, Roswell, and Alpharetta Whether you're a "move up" home buyer, downsizing, or relocating to the metro Atlanta area, you'll find a diverse range of home styles and price ranges just north of downtown in the Marietta - East Cobb, Roswell, Alpharetta corridor. Featuring affordable single family homes, condominiums, townhouses, and luxury real estate, these communities also offer great schools and unbeatable location. Basic Tips for First Time Home Buyers Choosing a first home can be a daunting task, but following a few key steps makes it a lot less confusing.An essential part of the process for every home buyer is to simply do the math. Ten Steps for Becoming a Successful Real Estate Investor The secret to success in real estate investment is finding bargain properties that you can "flip" quickly for a profit. Here are a few ideas for becoming a successful investor:1) Obtain sound advice from investors who are already successful. Investment Real Estate: An Inexpensive Way To Get Started If you are considering getting involved in investment real estate, let me offer some of the amazing information available in my wealth-building system, Winning the Mortgage Game. In several parts of my system, I outline a strategy for getting started in investing in real estate, without being a landlord. Real Estate Investing Works In Your Area Too! I hope you had a spectacular weekend!Things have been going great here at Investor Wealth Academy,and we are very excited about some major developments coming down the line for us later this summer.More on that later. Notify Them When Youre Moving One of your first steps, when you're getting ready to move, is to pick up a stack of change-of-address cards from the post office. Yes, old-fashioned go-by-snail post cards! You'll want to notify everyone in your address book and also. Landscaping Adds Great Value to Real Estate And Helps You Sell Over the years several of our clients have had professional landscaping done and it's amazing to me how little landscaping, can be done for $5-10,000, by a professional Landscaper, and how little value it can add to your home.Small shrubs, trees, and plantings add almost nothing, or actually nothing at all, to your home value on the open market -- until they are several years older! There is another way!Some savvy investors look for good homes that are poorly landscaped and after spending a couple of thousand dollars or less put the property right back on the market for much more money and sell it. Why it is Important to Hire Just One Real Estate Agent to Buy a Home In our fast paced and frantic real estate market, buying a home takes quick action and strong representation. Some buyers decide to involve several agents in their search for a home, assuming that there is strength in numbers. Home Buying Checklist - Windows If you are in the market to purchase a home, it can be easy to fall in love at first sight. Do so at your own risk. Understanding Opportunity Cost When Investing In Property While most investors have got involved in property investing because they understand the opportunities to make money through leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost.Remember anyone that gets into property is usually in it to generate money or income - how many deals/properties you own is insignificant. |
home | site map | contact us |