Reasons to invest in properties

By: Karl Hopkins006 Karl Hopkins006
Investment

Starting from luxury seeking Europeans, fun loving Americans to speculative Canadians- everybody is after finding the best investment property. Look into the following hot tips in your quest for profitable investment property deals-

Look into the law
Investment properties are entangled with law. Whether you like it or not these laws tend to differ from country to country. Do not run for any sort of assumptions. You never know where you will get stuck to, just because you took a legal clause less seriously.

For making sure that things are running real smooth, you must hire some legal experts. This will do a range of benefits for you as securing your long term profitability or making sure that your investment property is legitimate.

Plan your time
Make detailed plan for yourself. Especially you have to be a master in formulating contingency plans. Why? When you’re dealing with investment property (especially overseas ones), you are set to face situations like-
• Difficult climates,
• Seasonal hardships,
• Holidays,
• Cost and accessibility of quality building materials

These are all examples. But the truth is- the numbers of difficulties you may face as an overseas investor are innumerable. So be prepared to face the odds with your overseas/local investment properties. The more research you do the more informed you will be and the more enduring your contingency plan will be.

Be practical with your budgets
This factor is vital. There are different instances when we spend way out of our estimated budget while dealing with investment property. As for instance your consultant will tell you that you will have to add ten to twenty percent for taxation/fees over the price of the property.

But a smart decision here would be to keep some cash or budget aside for proactive actions like paying a visit to an alternative property overseas when your property is under construction. This also applies for the situations when the home you have purchased is at its last stage with light fittings, curtains, kitchen and bathroom upgrades or getting connected to the utility services.

Build sound feedback among your connections
Another aspect for your investment property quest or adventure is- constant communications. This applies especially for the developer or managing agent of your investment property. Be clear on some key and vital issues-

• The frequency of their updating you (about the progress)
• If they will communicate to you via emails or would the make phone calls to you.
• It gets real fun and effective to manage overseas investments when your agents send you regular visual updates.

Understand what you are getting yourself into
You are getting yourself committed to something real serious when you are buying investment property. So you should not be kept in dark in any way. This is not only financial stress- it is mental pressure as well. So at least you have to make sure two core things-
• You are not left in dark about the progress of the investment property building/renovations and
• You are in charge of the situation- even when things go the way you did not exactly plan them to be.

Investment property is like your trump card- you can win or loose. Work hard to enhance the chances of your winning.


Karl Hopkins is author of this article on buy to let. Find more information about Landlord here.