Guidelines for your Investment Strategy

First of all we need to decide whether we are looking at earning an income from either letting the property or from capital growth or possibly both. The next factor in your investment is what is your comfort level around your risk investment. This is a little more complicated to factor as you have to decide the risks around either growth or rental. The risk needs to include the external factors discussed in the previous article. Of course if you have a large financial buffer such as savings are much disposable income you will probably feel that you can afford to take a greater risk. Included in your strategy you will also consider how long you want to invest for. Purpose you want to get on the initial surge and bubble of new niche investment opportunity and make a quick short term investment and then get out. Alternatively you may decide to investment long term. In both cases you need to look at your exit strategy. What are your costs in exiting out of your investment and how easy will this be. Could you suffer a great financial loss if you exit early.

Investment secrets uncovered

The problem with investing abroad is keeping your eye on your investments. You need to think carefully before investing your hard earned cash in an asset a broad and have a well thought out strategy. First of all your market research needs to include to some extent understanding the country, politics, local culture, crime, growth, outside influences, tourism growth, pollution, language, building, landing regulations, etc.. etc. this list go on. What are your are looking at is how your investment will grow and what may affect it. Secondly are you using the property as a buy to let investment. If so you need to consider further factors that may affect the letting of the property and even before that how you will finance the property and in what currency. You could loose considerable money when an exchange rate changes if your buying in your home currency and the foreign currency suddenly becomes strong after you have signed a legal binding document committing you to the final instalment of your off plan investment. It’s incredible how many people invest in a property in the UK going to great lengths of getting expensive surveys and been really choosey about what light fittings are being left behind yet are willing to buy or property abroad even on ebay. Some friends of friends were really delighted this week when they announced that they had just purchased a property on ebay for £20,000 in Bulgaria. I never asked if they had got title deeds or anything else. Some other friends came back from Bulgaria last year and had purchased a property at the bottom of a mountain for £5,000 which needed complete renovation. This on the other hand was not for a property investment more as a holiday ruin to stay whilst hang gliding which they were going to renovate in their own time. What’s really put me off property investment abroad in some countries is when friends have come back from inspection trips abroad. We were really interested in purchasing in Montenegro as after reading much information about the development it appeared that growth was going to be very carefully controlled and it could really be the niche eco tourism place of Europe. Well maybe it will be however, the development pace is incredible over there and the climate quite humid causing a lot of damp issues during winter. Some of the very nice hotels over there suffer issues with damp and building problems. I suspect that the building standards may not be up to the same standard as in the UK. I’ve heard a lot of this news second hand so if I were still interested in investing there I would do my research first hand. What I am pointing out in the blog is that there are external factors you need to research. Several countries I have been interested in investing in have been Turkey and Bulgaria however, after reading several news stories on each of the countries I’m now re-thinking. The EU has stated that Bulgaria must tackle organised crime before joining. The levels of organised crime are very high so you must go in with your eyes open if you are to invest here. Additionally, if you buy cash to a friendly face in bar or over the internet you could be handing over cash to organised crime and find yourself involved in money laundering. Of course this can be avoided by dealing with retuable estate agents and never paying cash. Apply the same common sense to purchasing a property in the UK and then apply some more common sense and do your research. Like most people I’ve got carried away with watching the home in the sun programmes on tv and watching the top ten investments. What they don’t concentrate on is the other factors involved in investing. Like crime, factors affecting your investment, safeguarding your investment, do’s and don’ts, how your going to let out your property. We’ve several friends who use to own property and rent out the property. Some friends have been really successful and paid off their mortgages very early on these properties and then reaped the benefits later on in life. However, other friends have been less successful and had to spend a lot of money constantly replacing items, re-decorating, blank spots in letting the property. We’ve recently got on the property band wagon and purchased properties in the NE of UK. We’ve got one property that is empty where we are struggling letting it out. There are quite a few costs in keeping this property that we really think about and just assumed that it would be rented – very naïve I guess. We are now paying management fees, council tax and thinking about whether we need to keep the heating on whilst the property is empty. Additionally there is insurances on top of the property. So okay we have an investment that should grow we are having to dig deep in our pockets to keep this.

Property Investment Europe

Overseas Property Investment
The Opportunities for Investment in Europe

Europe is an overseas property investment goldmine. The fifty-four countries and territories that make up the European continent hold within their borders overseas property investment opportunities to suit every kind of investor. There are pure financial properties that are generating guaranteed rental yields for their owners; bargain basement properties that appreciate in capital at more than 25% per annum, and a plethora of opportunities to buy secondary income homes in some of the most beautiful locations on Earth. Add to this the numerous run-down properties and ruins that can be renovated or developed and then put back onto the market for a generous profit, and there seems to be no end to the number of overseas property investment possibilities available in Europe.

Traditional Overseas Investment Opportunities

Leading the way in overseas property investment opportunities are France and Spain. Both these countries are big players in the overseas property investment market, and have been for many years. France in particular offers stable long-term overseas property investment opportunities courtesy of their French leaseback system.

Operated by property developers and holiday management companies in France, the French leaseback system is an initiative introduced by the French government to attract overseas property investment in France. Property is purchased freehold and then leased back to the developer / management company, who then hire it out to tourists as a holiday residence. They do this on a long-term lease - normally over 9 or 11 years - and pay the owner a guaranteed amount of rent that is equivalent to 3% to 6% yield. If you're looking for a safe and ongoing overseas property investment French leasebacks are worth a look.

In Spain the focus for overseas property investment is on short-term lets to tourists. The Costas in the east and south of Spain are the most popular, and provide investors with the opportunity to own a second home in the sun, while at the same time earn an income from it. Portugal - especially the Algarve - is similar, and a hotspot to watch! Some overseas property investment pundits claim that Portugal is at the same stage as Spain was 20 years ago.

These countries, along with the likes of Italy and other regions of Central Europe, offer superb opportunities for overseas property investment that are tailored to specialist activities. The Alps and the Pyrenees for instance are top spots for overseas property investment if you want something that offers a mountain lifestyle, and an investment that provides all-year-round rental opportunities via sports activities like skiing, paragliding and mountain hiking.

Staying with the sports activity theme for a moment, you might want to consider an overseas property investment on a golf course somewhere. Golf is a very popular sport and can be played all year round in many parts of Europe. An overseas property investment on a golf course could provide you with some BIG income!

Coastal properties, especially around the Mediterranean, are much sought-after overseas property investments too. If you're looking for value and a great climate consider investing in the Eastern Mediterranean. The Croatian coastline, Greece, Turkey and Cyprus all offer affordable overseas property investment opportunities on the sparkling waters of the Med.

Eastern Europe - a New World of Investment Opportunity

Moving inland across Eastern Europe the astute investor will find a profusion of attractive overseas property investment prospects. Cities like Prague and Berlin are very hot right now. Residential properties are available for as little as 40,000 euros with a guaranteed rental offer for up to 5 years and prospects of high capital growth.

Bulgaria too offers some unique overseas property investment possibilities. The country has access to beautiful beaches along the Black Sea and mountains that nurture a growing ski industry. Capital growth in some areas of Bulgaria in recent times has been astounding to say the least!

Overseas Property Investment Success

The key to overseas property investment success in Europe is planning. Tax implications, such as inheritance tax, capital gains tax and income tax, should all be understood and planned for before making an overseas property investment. If you don't you could find yourself being clobbered by unnecessary costs.

You also need to consider how you are going to finance your overseas property investment, and what your total costs will be. Remember, property in Europe purchased from an agent will attract agency fees of up to 10%. It's always wise to know your costs before you buy and to have finance waiting for your overseas property investment so you can pounce while the deal is hot.

Top Ten Overseas Property Investment Hotspots in Europe

1) Turkey - Mediterranean coastline
2) Berlin (Germany) - financial properties with guaranteed income
3) Prague (Czech Republic) - financial properties with guaranteed income
4) Les Arcs, Val D'Isere and Meribel (France) - Prestigious leasebacks at ski resorts
5) Malta - luxurious waterfront apartments at a low price
6) Southern Spain - holiday villas with solid overseas property investment potential
7) Southern Portugal - golf property
8) Cyprus - low cost holiday homes in the sun and golf property
9) Bulgaria - Black sea coast properties
10) Croatia - coastal properties

For free information on property investments in europe visit http://europe-property-investment.blogspot.com/