UK Property Off Plan

When you buy off-plan it means your future house is at the drawing board stage. The best thing about it: you can select any paint color, change around internal walls, and get any tiles, bathrooms, kitchens in this case you get custom design property as though it was self-build but you do not have to pay anything extra for private architecting.

If you buying a property off plan now you will secure the price of the property at today’s prices. By the time the property complete it can cost twice more then what you paid making you a significant return on your investment.Remamber if you wait until more completed properties come on sale you may have missed the train any have been priced out of the market.

When you build your house developers usually ask stage payments from you throughout the building process. This means that you do not have to pay everything at ones you can save for each payment, you need to budget the payment and you are effectively securing a high value asset for a very low initial capital outlay.

Many investors buy off plan property never planning to pay for it and of course never intending to live there. The stage payment method gives them this advantage.

They usually funding the build and never make the final payment which is usually the largest amount of money because they sell the property just before to be completed and take out profit from increase in value the property has achieved throughout the period it took to build it. This is very risky approach as market can go up as well as down or you might have a problem to sell it.

Every time you buy property off plan you have to take certain risk. What if your financial situation will change and you are not going to be able to pay for it on time or what if developer does not build the property up to the standard.

How secure will your investment be? You will need to get independent legal representation to protect your rights and money throughout the build process. Find out before you sing any contract.

If something happens to the builder what do you actually own and can you get your money back? What guarantees you have? Be careful there is a theory that throughout the build process the builder can re-mortgages the land on which your property will stand and until he repays the lender you cannot take legal ownership of your property.

There is no guarantee the finish quality of the property you are buying. In this case you need to discuss your expectation and have them written. Make sure you have legal guarantees covering the structure of the building for next twenty or thirty years.

Another problem with off plan property is that you have to wait a long time to move into your dream house and you will pay out for something for long time

Bulgarian estate off plan opportunities make is simple for home buyers or investors to eventually buy very beautiful estate homes that they do not currently have the financing for. If you have been looking into Bulgarian estate off plan opportunities you probably know that it is a great way to get a valuable property that is still be constructed for less up front. Instead of buying the property outright before it is done a Bulgaria estate off plan will give you the opportunity to buy the property you want by making just a small down payment. With a Bulgarian estate off plan you will find that you can give as little as one to ten percent of the sales price to the contractor and that will basically guarantee that the estate is yours. The Bulgarian estate off plan allows for you to take the time that is spent building the Bulgarian estate off plan property to get your finances in order. With a Bulgarian estate off plan you can either pool your monies or get a mortgage to pay what is still due on the Bulgarian estate off plan.

Developers or builders usually really like the idea of a Bulgarian estate off plan because it allows them to build without going to the bank. The money that you give the builder or the contractor as a part of the Bulgarian estate off plan can be used to actually finance the construction project. Even if your Bulgaria estate off plan and the Bulgarian estate off plan of others does not cover the full price of the construction, it will allow the builder to basically finance a good deal of the project without getting construction loans and the like, which all carry finance charges with them. A Bulgarian estate off plan is more like a loan without the interest rates or free money to the builder so they encourage the use of a Bulgarian estate off plan as often as possible.

Bulgarian estate off plan is located all around the country and there is more and more Bulgarian estate off plan popping up all the time. If you are looking for a Bulgarian estate off plan you may want to look in the Sofia area, in and around the ski resorts, as well as on the Black Sea coast. If you cannot seem to find the Bulgarian estate off plan that you would like to invest in you can always seek the help of a real estate agent that has experience with Bulgarian estate off plan or you can search a Bulgarian estate off plan database. All you have to do with a Bulgarian estate off plan database is choose the region you are interested in and find the Bulgarian estate off plan that best suits you and your needs.

If you are interested in investing in something that could potentially make you a lot of money you might just want to look into a Bulgarian estate off plan. While Bulgarian estate off plan investments are not for everyone many people have found them to be a very lucrative investment time and time again. When you learn about Bulgarian estate off plan opportunities, you may realize that you can get the estate home of your dreams with the help of a Bulgarian estate off plan.

Investment Property France - New build and buying off plan - buying for investment.

New build and buying off plan are appropriate to buyers who are looking to maximise their return on investment - whether they intend to use the property and live in it as their main residence or whether they intend to rent it or sell it on.

When deciding to buy a property for investment you need to focus on two things: where and what to buy.

Is this country, region and property somewhere that other people will want to be in the future?
How do I want to make my money - from renting out the property or by selling it?

In other words, you need to consider location and returns. An analysis of all the relevant factors should enable you, with the help of a little expert advice, to make the right decision!

Our Agencies can advise you objectively on a range of investment choices, and provide opportunities to buy off-plan for even more gains.

Location

Apart from the obvious things like the weather and the scenery, you need to ask some very specific questions about your chosen location.

# Are there plenty of recreational opportunities (beaches, golf-courses, mountains, shopping) nearby?
# What child and family-friendly activities are on offer?
# What are the plans for leisure activities, golf courses in the area?
# Is it close to growing urban centres and an airport?
# Is there commercial investment in the area eg new hotels, conference facilities and centres, etc being built?

All this should give you an idea of how popular your choice is likely to be and how likely your investment is to increase in popularity.

Accessibility is key, but you need to look at what it will be like in 3 or 5 years time.

# Are new roads being built?
# Are regional airports being developed?
# Are budget airlines looking to add this location to their destinations?

Look at historical trends. These are likely to continue, albeit in a modified form.

In the first instance we strongly recommend you employ the services of a lawyer based in the area of purchase. Laws vary greatly by country and sometimes by region within that country hence the need to select a lawyer who is very familiar with the area.

Buying off plan means reserving a property - sometimes before commencement of the build. Developers like to sell as many as possible before starting the work in order to protect themselves and in some cases to earn more favourable bank rates. In this respect if you are one of the early purchasers it is always advisable to try and understand the lead time before building.

Very often developers do not start before 70% of property stock has been reserved but this does vary by country. In return for this “inconvenience” prices are virtually always more favourable than buying a completed property or a resale. Remember, if you prefer to wait until you can physically see the construction it will normally cost you more.

Prices will still move upwards during the course of the build, so the sooner you can decide the better value it is likely to be. Once you have decided and signed the contract irrespective of the build stage the price should be fixed.

One of the main advantages to buying off plan is that frequently (and again this varies by country) you need only pay around 30% to 40% of purchase price and often very little until completion. The balance can either be settled by cash or a mortgage which is often built into the purchase price.

In some cases, subject to the conditions of purchase, the contract will enable a buyer to sell the property before completion after having paid, perhaps, only 30% to 40% of the purchase price.

For example:-
Purchase Price : € 150,000 / £ 100,000
Deposit Payable : € 52,500 / £ 35,000

Assume the property is sold before completion for € 202,500 / £ 135,000, (not an unusual return over say an 18 month to 2 year planning and build period) then profit = € 52,500 / £ 35,000.

This leaves a profit of € 52,500 / £ 35,000 or a 35% return.

Our Agencies will be happy to discuss specific new build projects across all featured opportunities.

Rental income versus capital appreciation

How do you intend to make your money - from rentals or from selling the property, either quickly or in several years time? Both have tax implications which need to be considered in the light of local legislation.

The rental returns from a property need to be carefully assessed and not over-estimated. Rentals are never guaranteed, and you should be careful not to take on something which you may struggle to pay for when it is not rented out. Look at local supply and demand.

Security

30 weeks rental per year might be a reasonable expectation; this should produce a net return of about 6%, but also means that the property may be empty for 22 weeks per year. A secure development would mean you do not need to be concerned about leaving it unattended, however thought should be given to security over the time the property is left unattended.

Maintenance

Another issue is keeping the property in rentable condition, so you will need to organize (and pay for) some sort of property management in your absence. Will the developer provide this, or will you need to source a cleaner and gardener yourself?

Capital Gains

If you are looking at selling the property, you will need to consider the current capital gains situation. For example, capital gains tax (CGT) for non-residents in France is 35%.

It’s a lot to think about, and all the factors need to be carefully considered and balanced before you make this important decision. Our Agencies can advise you on the various investment opportunities available.

The Spanish property market has been in the eye of the storm on many occasions, both for good and bad reasons. Recently, it was because of a sharp fall in the value of Astroc Mediterraneo, and subsequently other Spanish real estate companies, on the Madrid stock exchange.

The British press went to town with its typically sensationalist coverage of the Spanish stock market’s “Black Tuesday”, announcing a Spanish property market crash and warning readers of the huge losses facing British investors. It failed to point out, however, that the actual property market in Spain had not suffered any consequences!

Attention-seeking headlines of this kind need to be balanced with the relevant facts and a clear understanding of how those facts impact the underlying value of Spanish property. It was, in-fact, the speculative phenomenon of the Spanish stock market that got a slap in the face, leaving the Spanish construction sector and Spanish house prices untouched.

The British press failed to point out, for example, that the shares in Astroc Mediterraneo, which fell so sharply, and initiated the story in the first place, rose more than 1000% last year alone, and that even after the fall, were still up over 100% on their value this time last year - a great annual return by any measure. To conclude that a stock market correction was well overdue might have been a more rational explanation. A sceptic might attribute the chosen headline to its more positive impact on newspaper sales!

The reality is that house prices primarily reflect the supply and demand for houses. Although demand for Spanish property has seen a marked decline during the last year or so, compared to their earlier boom levels, due primarily to rising interest rates across Europe, evidence is now appearing to suggest that supply is also being cut back, as Spanish developers channel resources and efforts into new markets, such as Poland and Romania. Indeed, the stock market scare is itself likely to result in a further supply cutback.

If you are considering the purchase of a Spanish property and are concerned about the recent headlines, it is recommended that you mitigate any potential risk by considering the following options, instead of the more popular off-plan purchase that became so popular during those boom times:

1. Consider the purchase of a key-ready or soon-to-be-ready property. Some developers now have properties in these categories. It is no longer necessary to wait two years or more for your Spanish property.

2. Consider re-sale properties (properties purchased off-plan some time ago by investors but now being sold on prior to completion). The drawback of re-sales has been mitigated by the recent market changes.

3. If you’re an investor, concerned primarily with your return on capital employed, you should look for distressed sales (people who purchased off-plan some time ago and who cannot complete the purchase now that the property is almost finished). You should expect a significant discount to current market value, but you will need to act very quickly.

Are you putting your hard earned money in bank accounts? Stocks? Shares? Then you could be losing thousands in missed opportunities every year!

It’s so good in fact, that it is estimated that nearly 90% of the world richest individuals become rich by investing in property!

So let’s find out exactly how anyone, including you, can plan for and build property empire, and make you a millionaire!

1.Finding The Time

Have you ever wondered why you are always working and never seem to have enough money?

The money I save allows me to purchase cash generating properties which means that I am not dependent on a 9-5 office job. I have more time to spend with the people I care about.

Before this happened I always had a feeling that I wasn’t using my time effectively. Do you sometimes fell like this as well.

There were days where I would work, go home, watch TV go to bed, work, get home and watch TV again.

Basically, I was in a rut.

One of the most useful things I found was finding the time to focus on the things that really mattered.

So how do you find the time. Let’s have a look at some of the things that really takes up a lot of our time:

1- Watching TV.

2- Do less work and overtime

3- Plan your time more carefully.

Surveys show that after work and sleep, watching TV is the third main use of people’s time.

Don’t get me wrong, there are times nothing better than watching TV, but sometimes it can take up too much of our time.

Time is the most precious commodity. Personally speaking, given the choice between time and money, I will always choose time. After all there is an abundance of money, but only a finite amount of time.

What with the age of retirement continuing to rise and then pensions not being large enough for out retirements, people are increasingly thinking more and more about securing their financial future.

You owe it to yourself and your family.

ANYONE who can understand money and how to make it work for them, rather than them working for it, can become financially independent within 5 years.

2. Setting Goals

Let’s imagine that two people are driving somewhere they have never been before.

The first driver sets off straight away as fast as he can.

The second driver first spends some time looking at a map and deciding on the best route to go.

Which driver do you think will get there quicker and easier?

This is the same for property investments.

To be successful you have to declare where you are heading and set your targets.

Goals are important for many reasons:

a.They call you to action.

b.They help you make choices. Go for some things and reject others.

c.They introduce accountability.

d.They motivate you.

e.They increase your confidence to get you where you want to be.

When setting your own goals be honest with yourself. A great tip is to write them down on paper and refer to them. It’s a proven fact that those with written goals perform better than those without.

A goal is a tangible result that is unambiguous and measurable.

Sir Alex Ferguson did not become one of football’s greatest managers by telling his team to just see how it goes this year ‘…that `hopefully we will do well again’. He tells them ‘by Christmas we will be in the top three and by the end f the season, on May 17, we will be number one!’

“I want to own 100 properties as soon as possible” -that’s not a goal.

“I want 1,000,000 in my hank account by December 31, 2008″ — now, that’s a goal!

Set yourself a clear, measurable goal now.

Then break it up into smaller, more manageable tasks so you know exactly what you need to do in order to achieve it.

3. Deciding On Your Strategy

Goals are WHAT you want. Strategy is HOW to get them

Here are some of the questions you need to be asking yourself when setting your strategy.

- Have I got my goals clear?

- Has someone I know double checked that my goals are realistic and properly set out and written down?

- How much do I need to make financially to hit my yearly goals? Break down your overall goal into smaller chunks..

- What kind of property investment meets my risk profile?

- What kind of property investments are going to help me reach my goals?

Off-plan investments are a popular choice; buy-to-let renovations;

- How much time do I have on a weekly basis to make my goals happen?

- To whom am I accountable for reaching my weekly and monthly goals?

- What reading and researching do I need to do each week?

- What support do I need to buy in or nurture such as accountants, lawyers, finders, lenders and brokers?

Have I prepared a budget and a business plan?

For example, here was my goal when I first become interested in property investing.

Main goal- To become financially independent in 5 years.

Tasks needed to achieve this:

Education.

a- Take a course in property investment.

b- Read 5 books on the topic.

c- Join a property investment forum to learn from other people.

Money

a- Cut back on unnecessary expenses every month.

b- Save 40% of my salary each month, which was approximately 500 pounds at the time. This was to use to make property investments.

Investments

a- Purchase my first property within 6 months.

b- Purchase a new property every year.

As you can see, it helps to be very specific with your goals. If you can give specifics and values as this gives you something concrete to achieve.

Consider these two targets:

“Save money each month” is a little vague and might mean you only save a very small amount.

“Save 500 pounds a month” is more exact and also pushed me to be really careful with my money.

It was really hard work, but it means that I was able to put down a deposit on my first property within the 6 month time limit.

Once you have set your goals, review them every 2 weeks or so to see if you are going

Anything that does not fit all of these criteria does not even get considered further by me.

It’s important that you think about your own.

4- Good Financial Ground Work

If you are managing your personal finances badly to start with, getting involved with property will not help.

Property is there to generate cash for you, so don’t be borrowing unsecured loans. Property should also be sued as the collateral.

You need to sort out the cracks first so that when you do invest, the money you make doesn’t fall through them.

Try to keep your property investment and personal use accounts separately. Use separate bank accounts.

Try to keep you personal funds and your investment funds separate. That way you won’t overstretch yourself. You need to have a firm grasp on your finances to prevent problems

The simple answer that will solve all your money problems is to spend less than you earn and invest the difference!

5-Summary

Make time for your financial freedom. It’s well worth it. You will be surprised to find that securing your financial future can be done in less than 10 hours a week.

Consider that this is less than a third of the time that the average adult watches TV each week.

Make goals that you are happy with and create a strategy to show how you are going to achieve it. If you can do this and stick to you plan, then you will have laid th4e foundations to creating your financial future and it will only be a matter of time before you make your first million with careful and informed property investment.

Novice UK property investors are making more and more fundamental mistakes. The question so often is, where should I buy investment property in the UK? They then follow this thought by imitating the strategies of the most successful investors from ten or fifteen years ago. Go assume that the way an investor made their money then and the area they invested in must still be as lucrative today.

There is no disputing the wealth of some of these property tycoons that started their empire years ago. Bright eyed investors watch TV shows and see the kind of houses these people live in and the sorts of cars they drive and then jump headlong into imitating their strategy, without really understanding that the property market is very different now to what it was then.

Fifteen years ago you could have bought property in many parts of the UK and the rent you received would comfortably cover your mortgage. These days we don’t have such a luxury and every investment decision needs to be taken carefully and prudently adding up all the figures to make sure that you are not going to be out of pocket.

This is the fundamental problem that arises when you purely imitate a strategy from the past without fully understanding what you are doing and the implications of your actions. The TV shows are not realistic. Yes, there is no doubt that these wealthy individuals have made an absolute fortune years ago, but that does not mean that if these same individuals started today from scratch with exactly the same strategy, that they would end up making the same amount of money again.

For example, many investors made their fortune in the nineties through buying off plan properties. At the time they made the majority of their money it was simply a case of putting down a deposit and sitting back and when the time came for completion 12-24 months later you could virtually guarantee a very healthy profit.

This is simply not the case today. Off plan properties have become over saturated, with some developers now building not with the owner occupier in mind, but with the property investor in mind instead. Apartment blocks are coming to completion and are being valued at less than what investors paid for it at the off plan stage.

Property investors all over the country who don’t do their due diligence are making huge mistakes, because they are simply following the wrong strategies in their quest to build their portfolio as quickly as possible. They fail to grasp that a major key with making money from property is knowing your market. Knowing whether it is the right time to buy off plans or to buy established properties, knowing whether the market is right for you to sell your properties or whether you should be renting them out.

Today’s investors have to learn how to respect the current market conditions. He has to learn how to adapt to whatever the market throws at him. They have to be exceptional at doing there own due diligence. In today’s property market the question should perhaps no longer be - where to buy property? As on paper hardly any areas in the UK make financial sense to buy to let in. The question should rather be, how much below market value can I buy property in any location, so that the figures add up and it becomes financially viable?