Overseas property investors all know that the profits in any investment property abroad are made at the purchase. That is too say the property is bought cheap enough that capital gains are almost certain. Seasoned investors continuously search the overseas property markets for cheap property abroad,
but is this really the best way to find a good investment property?I once learnt of an apparent Chinese proverb which said “cheap things no good, good things no cheap “which runs along the lines of if it’s too good to be true it probably is.
Cheap property abroad is cheap for a reason The Myst Condo and this is where investors will have to place their attention. Why is this property so cheap?Off Plan propertyPre construction property can bought before a brick is laid and sometimes before even planning permission is granted. Off plan property is a great way to make your profit on the purchase. Typically buying property at this early stage almost guarantees you a profit when the property is built and ready to sell. However investors need to study the market, in generally stable markets builders will offer the property cheap enough for investors to make a profit.
Some builders will guarantee that the price of the finished property will be ‘X’. This can be ideal as investors can anticipate profits and even plan what they will do with the instant equity in their property once it has been finished. Investors need to be careful with title and planning permission and should seek legal advice to make sure that these are correct at the time of purchase. Off plan property can be cheap because the builder needs to raise funds to continue building and without your early investment money the project may not even start. Investors need to seek guarantees regarding projects that don’t take off. A safe way is to have your money held in an escrow account. Here are some considerations: