All about investment

1. Don’t let your emotions cloud your business judgement If you are buying for investment purposes particularly, try not to become emotionally involved, remember this is a business transaction and unless you plan to stay and use your overseas property choose an area with strong capital appreciation and just because you wouldn’t live there yourself doesn’t mean it’s not a good investment. Markets that are rising fast now are Cyprus, Macau and parts of the UK and according to the Royal Institute of Chartered Surveyors review in 2005 the top 2 markets with the highest capital appreciation in 2005 were Estonia and Denmark.

2. Research and understand your rental market Be careful if purchasing in large blocks of apartments exclusively sold to investors, which can often complete together bringing large supply into the market at one time. Twenty or thirty apartments can easily find tenants, but prepare to wait longer if you’re the owner of an apartment in a block where hundreds of apartments become available to rent at the same time.

3. Remember transaction costs seriously reduce your returns Remember transaction costs reduce your overall yield. For example in Germany apart from transfer taxes (stamp duty) the buyer pays the estate agency fees, not the vendor. Transaction costs also increase in countries where the loan to value rates are low, the more cash you have to put into a deal the less the return on investment. Check all your transaction costs before buying, ask your solicitor for a full quote in writing outlining all taxes and fees, but remember to ask for it in writing before you commit.

4. When is a discount not a discount? It is easy to get discounts on higher value properties, over priced properties and over supplied destinations. Remember list prices are developer driven and they always tend to price at the top of the range. Just because you receive a 10% discount doesn’t mean you secured a bargain. You are better off buying the right property at list price provided there is good local sales and rental demand. It is more important to buy in areas where there is a good resale market and a strong rental market rather than an area where developers are offering discounts. Currently Bulgaria and Poland have weak resale markets. Spain in particular is seriously oversupplied especially in the Costa Del Sol region.

5. Achieving short term capital appreciation There is limited capital appreciated prospects if you purchase a two bedroom apartment in an area with hundreds or thousands more two bedroom apartments either completed or in the planning stage. If you wish to beat the market you need to establish which segment within a given market has the least supply and the most sales demand both by local and foreign buyers.

6. Negotiating skills Negotiating skills are your most underestimated asset, always haggle and you will be surprised how much discount you can get especially if you’re a cash buyer! Estate agents often over estimate values and many often test the market with high unrealistic prices. Estate agents have a built in habit of implying there is more actual demand than there really is. The Irish are seen as a “rich gravy train” and have a strong reputation for being cash rich buyers and some unscrupulous estate agents may take advantage of this. Remember to play a long game, make a lower offer and stick to your guns. The best negotiation strategy is to be able to highlight comparable properties selling in the area, basically if you can show the agent that a similar property in the same area is selling for less, and then it’s easier to justify the price you are offering.

7. Rental schemes Beware of guaranteed rental schemes, as they are just a sales tool cash flow exercise. Rental guarantees are sometimes offered in areas where there is an over supply of rental properties. Ask the developer to give you the value of the rental yield by way of a discount, this way you won’t be taxed on the rental income and at least you will know that you have your rental guarantee in the bank, as rental guarantees are often provided by separate shelf companies with no financial strength.

8. Dealing with estate agents Buy through a local Irish agent, if a problem occurs it will be easier to resolve through a local Irish based agent, dealing with problems in a country with a completely different culture and law may be difficult if you are dealing with the developer direct

9. Decide on your strategy There is no ideal strategy in terms of trying to find the right way to purchase investment property. The strategy that will work best is a strategy based on your long-term goals in line with your financial position. If you are a first time investor with limited resources be careful to choose a property with good rental income, otherwise you will end up sending large monthly top ups to your mortgage provider.

Author

Henry Davis is an Irish based Property Investor developing in Manchester and Liverpool www.internationalproperty.ie or +353 87 2344000

By: lancastersuites

Beth Collingz, PLC International Marketing Director for Pacific Concord Properties Inc's Lancaster Brand of Apart-Hotels or Condotels in the Philippines said a recent study published by UK National Savings & Investments found 84 per cent of 18 to 30-year-olds believe buying property abroad is a more viable option than buying in Britain. Young people buying abroad and renting in Britain are and will continue to be a growing phenomenon. They generally look at spending less than £200,000. This comes on the back of recent reports by Barclays Bank that revealed the number of Britons keen to buy property abroad has doubled to 18,000 in a year.

When you consider these facts along with aging population, increased property wealth, Self-Invested Pension Plans and leisure lifestyle aspirations of the populous it is easy to see why many shrewd property investors are looking for better lifestyle and hassle free overseas ownership and why many advisors are looking aside from the traditional UK buy to let and Spanish holiday let for property options for Condotel Investments in the Philippines. Collingz said: “Since the Dollar value depreciated and UK Pound Sterling hit 96:1 on the Philippine Peso, my phone has been very busy with buyers from the UK interested in purchasing investment properties and holiday homes here in the Philippines.

A lot of this interest is being driven by relatively cheap market prices in the Philippines compared to Europe, especially UK Housing prices, and easy payment options available for our Condotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through In-House Management when not using the unit thereby gaining rental incomes that on today’s purchase prices, give a projected ROI on their investments of some 8-16% depending upon the mode of payment for the unit”

Collingz, who also runs PLC Global Pinoy, an internet based marketing network specializing in Condotel Investments, indicated more than 85% of all sales in Metro Manila were to international clients. “These international buyers know it’s a buyer’s market in the Philippines right now - there are a lot of properties available and fewer local buyers,” Collingz said. “I’m working with clients who are purchasing their second property with me. We also have referrals from many of our prior customers and new clients who have found us through our Web sites, lancastersuites.com and plcglobalpinoy.com which include a special section for international buyers”

Another major driving factor in overseas property investments from the United Kingdom is UK Tax Payers taking advantage of tax incentives and Investing their Self-Invested Pension Plan [SIPP] In Philippine Condotel Investment Real Estate for Rental Income and Retirement said Collingz.

A Self Invested Pension Plan [SIPP] is a personal pension plan but with one very significant difference: administration is separate from investment content, giving the plan holder freedom to choose for himself and change the investments within it. The long-awaited rules on what savers can include in their personal pension plans were unveiled in April 2006 by HM Revenue & Customs. The Guidance Notes confirm that the Chancellor is permitting Self Invested Pension Plan [SIPP] holders to invest in hotels such as the Lancaster Brand of Condo Hotels in the Philippines. The only stipulation is that SIPP holders may not stay in their rooms. With more nights available for paying guests, this not surprisingly increases the room owners' returns. It is estimated there are now more than 70,000 plans holding over £14bn.

A year or so ago, few people in the UK realized that they could manage their Pension Plan portfolios themselves, and even fewer knew that they could invest their SIPP retirement money in homes in the sun which now prove to be among the most popular potential investments to include in a SIPP

If you’re considering using your SIPP to invest in real estate, there are some excellent reasons that you should choose Philippine Condotel Investment real estate to drive your retirement portfolio into high profit margins. The Philippines is ideal for this type of investment because a SIPP can establish title to a property in a country whose legal framework recognizes trusts – and a SIPP is simply another form of trust. “Investing in foreign real estate is neither as risky nor as tricky as a lot of people would have you believe. While land and housing prices in the U.K. have soared astronomically in the past decade, the world real estate market is a far different story. It’s still possible to buy a preconstruction Condotel suite at Lancaster – The Atrium located in Metro Manila, Philippines, for less than GBP £25,000.00”

“The beauty of holding property in the Philippines is the low cost of property taxes and maintenance. A GBP £25,000 Condotel suite will only set you back GBP £100 in property taxes per year, and maintenance costs are similarly low. When you add in the tax-protected status of investments made in your SIPP, annual off plan property appreciation and the 8-16% returns through rental income through the Condotel advantage, you have an incredible ROI on a purchase of Philippine Condotel investment real estate” enthused Collingz. With preconstruction property in the Philippines appreciating at some 20% per annum not only do real estate investments look good but the rental income return in the Country is in excess of what many Pension Plans offer for the same or similar investment.

Many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate. “Clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”

Collingz said this potential, high rates of rental returns from Condo Hotel Investments, up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement. "We’re here to help our clients and advise them of emerging investment opportunities in the Philippines. Self-Invested Pension Plans and Lancaster Condotels, fit this bill exactly.

Pacific Concord Properties, Inc., Flagship Lancaster Condo Hotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, is currently one of the hottest Condotel Investments in the Philippines. Lancaster - The Atrium is accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year "In-House" financing available, full condo ownership and minimum monthly maintenance fees, you really should take a moment to look at this Philippine Condotel Investment Opportunity encouraged Collingz.

Further info regarding Condotel Investments in the Philippines, Lancaster Suites currently available suites, price and terms of payment can be found on the firms website.

Beth Collingz
PLC International Marketing Networks

Article Source: http://www.superfeature.com

Pacific Concord Properties Inc., Manila Head Office Shaw Boulevard, Mandaluyong City. Metro Manila. Philippines Phone: Manila [632] 717 1958 Fax: Manila [632] 718 1828 Pacific Concord Properties Inc., Cebu Office Lapu-Lapu City, Mactan. Cebu. Philippines Phone: Cebu [6332] 340 0721 Fax: [6332] 495 4938 EMail: plcsales@pldtdsl.net www.lancastersuites.comwww.plcglobalpinoy.com