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First Time Buyer's Guide

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Why invest in International Property?

Astute investors have been keenly aware for some time that investing in property provides the most secure route to realising extraordinary returns. As stocks and shares present an increasingly more volatile investment landscape, investing in property has become the safest and most efficient way to reap huge returns on a shrewdly placed investment. Investing in property is also perhaps the most approachable option for the first-time investor. Provided you research your market thoroughly, you stand to make considerable gains.

Better Homes International makes the world of property investment considerably easier for you. Our experienced property investment consultants source property developments in the most profitable areas of the world. By using market experience, localised knowledge, and an acute awareness of current trends, we are able bring you property investments that offer you the greatest return on your investment at the lowest risk. In order to attain the greatest profits, you need to invest in a market before it becomes the next big thing. This is where Better Homes International can help, finding property in emerging markets before they explode so that you remain one step ahead of the curve.

Off-plan

Off-plan property allows the investor a straight-forward and relatively secure way to achieve the greatest returns. Off-plan has a considerable number of advantages over investing in resale property and offers far greater flexibility to the property investor. Developers selling off-plan property will offer discounted prices considerably below the market entry price allowing the forward-thinking investor to invest at the earliest possible stage in order to benefit from maximum appreciation. Beyond this, the deposit required is also low; usually around only 20%.

Buying off-plan also allows the investor the opportunity to ‘flip’ the property (selling the property before completion). This allows the alert investor to benefit from an appreciating off-plan property without even having to invest any of their own money. Whilst more complex than the initial concept suggests, with the right help, this can be an attainable and highly lucrative strategy. Off-plan properties often offer the additional benefit of including a 10 year building guarantee which becomes particularly important if you choose to pursue a buy-to-let strategy.

Off-plan property also avoids many of the problems associated with buying resale property. With an off-plan investment, you are able to choose exactly which property you want at the earliest possible stage and you won’t be subject to the considerable variations in market prices dictated by the caprices of a property owner. The other obvious advantage of off-plan over resale is that you will avoid costly renovation work and ongoing problems resulting from poor maintenance.

What you need to consider

Better Homes International draws upon its expertise and insider market knowledge to bring you the most lucrative property investments early on when you stand to make the greatest profits. No property investment can claim to be 100% risk-free, however, and it is important that you conduct your own research into the property market in which you plan to invest. The most lucrative investments are usually found in the emerging markets where property prices look set to increase as the market takes off. Whilst there are a whole host of economic and political factors to consider when ascertaining whether a particular housing market is set for a boom, a reliable rule of thumb can be to analyse the tourism industry in that country. Substantial year on year increases in tourism often prefigure a surge in the property market as the country receives enough exposure and its popularity increases sufficiently for people to consider purchasing property there. Steady tourism also usually ensures a sustainable property market as accessibility and infrastructure improve concurrently to cope with the increase in tourism.

An analysis of the country’s economic and political state should provide further indicators as to whether there is a viable investment market or whether its current popularity is little more than a passing fad. It is important to look at the fundamental markers such as; the country’s GDP, FDI, and employment rates. You must bear in mind too, that all these things become can become redundant if the political situation is unstable to the extent that a presently flourishing economy could unravel at any moment. If you are pursuing a buy-to-let or long-term investment strategy then the issue of ‘resaleability’ becomes very important and you must consider a number of factors at a more local level. You must consider whether there are sufficient local amenities including schools, hospitals, and transport links to make the property an attractive option for future buyers. If you plan to retain your property for any length of time you should also consider whether there is a suitably strong local property demand or whether the property is only realistically attainable to foreign buyers. With buy-to-let investments, too, you should closely examine the occupancy rates for rentals within that area to ensure you will not be relying on a purely seasonal influx of tourists.

While Better Homes International will supply you with the most lucrative investment property from around the globe, it is important that you are not investing blindly and are clear in your own mind why this is a good investment and which investment strategy you plan to follow.

Additional Considerations

It is extremely important, when pursuing a property investment, that you consider every conceivable cost and that you make provisions for these costs before you invest. Before the completion of a property purchase you can expect to encounter the following fees in their various country-specific forms; notary’s fees, land registry fees, surveyor’s fees, property taxes, municipal taxes, and solicitor’s fees. You will also need to consider both Capital Gains Tax and Rental Income Tax but these will depend very much on the country you are in and what investment strategy you choose to adopt.

It is highly advisable when investing in property in another country to employ the services of a qualified local solicitor who will have good working knowledge of the property laws peculiar to that country. In a number of countries, as well, the contracts are required to be drafted in the native language so employing an English-speaking local lawyer will ensure nothing is lost in translation and that you are fulfilling the necessary legal requirements.

Investing in property, then, can be extremely rewarding but it is important that you obtain the right help and do your research. Better Homes International will help you find the best property investments from around the world and guide you through every step of the purchase process. Whether you are undertaking your first serious property investment or an experienced investor looking to expand your portfolio, we can help you find your ideal investment.