When investing in overseas property there are two typical categories which dominate the market:
- Off Plan Purchases. This applies to the purchasing of a property or building before it has been completed based on viewing the plans and specifications. The biggest advantage of purchasing off plan is the amount of money you will save, however you must research thoroughly before committing your assets and investigate the developer and their background. Also, off plan developments often take longer than their initial completion date states, so be prepared for an average extra 6 month wait!
- Key Ready Property. The building is ready for immediate use. This is considered to be the safer of the two categories as you have control over your purchase as soon as you hand your money over. Although you can receive rental income and profit earlier with a key ready property, you will probably pay a substantial market price and lose out on the potential capital growth provided by off plan investments.
Top tips for purchasing off plan property;
- Save money by buying early in the development stage.
- Make a hefty profit by selling before completion and save yourself the hassle of completing the purchase.
- Buy and hold short term for about 2 years so that the property can mature and establish a steady level of occupancy and enjoy the rental profits.
- Buy and hold long term to reduce risks and enjoy a good level of rental income over a number of years. In the long term, most properties will increase in value and provide you with ample financial gain!