Investment in overseas property is now easier to do than ever before with low and stable interest rates and more reliability.
1. Mortgage lenders are offering better deals on overseas property, demanding lower deposits and offering a greater variety of mortgages
2. Accession to the EU for many new countries since 2004 has given developers, tourists and industries greater confidence to build, visit and relocate.
3. There is a massive building programme going on all over the world in present or future investment hotspots.
4. Many emerging markets have been experiencing annual property price increases of between 25 and 40 per cent.
5. Even more countries are becoming accesible to tourism, with better roads and vastly improved air transport with budget airlines.
Wherever there is a growing tourism market a property investment market is sure to follow. This gives investor more choice for their money as you can invest further afield e.g the carribean. The most lucrative deals can be found when you buy off-plan. When buying off-plan you are putting money into somethng that doesn’t yet exist which can take some imagination. Almost always, off-plan developments are offered to early buyers at discounted prices.
When you decide to invest in overseas property, firstly decide what area you would be interested in. A lot of emerging markets have the best deals available. There are also investment propositions whereby you only have to put down £1000 reservation fee and then if you decide to borrow the 30% that is due 45 days after the initial deposit the developer will make the loan repayments until completion. These payments will then be added to the purchase price on completion.
Example (Sterling): Property price £200,000. £1000 reservation fee paid. The deposit = £200,000 x 30% = £60,000 – £1000 (reservation fee) = £59,000. Interest on £59,000 @ 6% p.a. = £295 per month, paid for 24 months by the developer = £7,080 added to the purchase price upon completion.
Due to the significantly discounted off-plan contract price and the capital appreciation during the construction phase, it is anticipated that the £200,000 purchase price will have grown to a property value at completion of circa £325,000. At this point a 70% loan to value guaranteed mortgage is available and therefore you will be able to borrow up to £227,500. This is clearly ample to pay for the £199,000 (purchase price less £1000 reservation fee) that you owe as well as the accrued interest of £7,080 – from the above example.
So in conclusion, to invest overseas can be very lucrative. You must look around for deals with 100% finance or small deposits. It is advisable to invest in emerging markets and to buy off-plan for the greatest returns. For some lucrative investment deals you can visit [http://www.pinkpropertyinvestments.com] as I have found them to be very knowledgeable about the markets and not pushy, they just gave me the information I requested and answered all my queries promptly and professionally.