Introduction
Interest rates for savers generally follow inflation trends and statistics show that these gains are always positive unless you are very unlucky. The reason why so many people invest in Banks is because they are usually a safe bet. Indeed, often your savings will be guaranteed.
Money in a savings account is usually a safe investment but the return can sometimes be limited for the investor when compared to other options.
There are many opportunities for investment depending on the level of risk an individual is prepared to take. These forms of investment might include stocks and shares, endowment insurance policies, pensions etc. We are focusing our attention on the property market where our expertise is.
Stability of Property Values
In real terms although property markets do suffer from peaks and troughs, property does increase in value in the long term. Recently in some areas, property prices have actually gone down, this is due to the economy which has an effect on supply and demand. An over supply of property can easily reduce property prices when the property market is struggling.
Property prices do go down but history has shown that they always recover and they are stable in the long term. Steady or significant increases in property prices are usually the norm.
Whilst there can be no guarantee that property prices will increase over say, a one year period it is generally accepted that a well maintained property in a reasonable area will appreciate in value.
Interesting Statistics
The following statistics make interesting reading:
50% of individuals mentioned in The Sunday Times Rich List made their money through investing in property. A property worth just EUR10,000 some 30 years ago would be worth around half a million Euros at today’s prices. Between 5th October and 6th November 1987 the FTSE share index fell by a massive 32.1%. (Published Bank of England Statistics) It would not be fair to say that money cannot be made on the Stock Exchange and no one could dispute that. Most people take professional advice before investing in the stock market which is advisable.
Property Investment
The most successful property investors usually research the market and build up a considerable knowledge before they invest. Speculators often make huge profits by predicting changes in the property market and investing for gain, often just at the right time.
Most individuals who invest in property do so based on their own research and experience. The success rate for property investments is usually quite high which is why it is such a popular and sometimes enjoyable choice.
Building up a Portfolio
When a property which has increased in value, or if the loan has diminished, equity can be released from that property. Many buy to let investors have successfully used their borrowing ability to build a property portfolio and many have generated substantial wealth for themselves.
Buying property enables the investor to secure borrowing which can then be used to make further investments in property; this cannot be said of most conventional types of investment.
Rental Income from a property can then be used repay the loan which in time also increases the value of the investment. As property prices increase, so to does the investment and the increased equity can therefore be used to secure more funds and increase investments in property.
Many individuals have also increased their gains by investing in property located in up and coming areas or by making improvements to properties. Property improvement will always enhance property value.
Short or Long Term Property Investment
Whatever type of investor you are, property should always be a good long term investment.
If you are purchasing that place in the sun you can still benefit from the same investment opportunities but perhaps also with the advantage of an increased income from holiday letting.
Buying an off plan property can be a lucrative short term investment because Developers usually sell the opportunities at less than the market value in order to attract investors. The reason for this is that the Developer will benefit commercially by the the Investor funding the development cost.
It is not unusual for Investors to make 20 per cent profit by the time they get the keys. The Investor benefits from the enhanced inflationary value of the property during the construction period because the price is fixed before construction. Some Investors are able to sell the property on before it is even finished.
Opportunities for Investment in the Property Market
Prices are probably lower now than they have been in real terms for a couple of years so now is a good time to invest.
We have many bargain properties and off plan property investments on our website, if you need any help deciding on the best opportunities why not contact us for advice.
There’s a good news for property seekers in Pune. The city is expanding its territories and adding new sub-urban areas to its borders. This spells more space for real estate developers and builders and more housing units for the property seekers. Adding to joy, is the fact that property values seem to be heading for a stabilisation phase. Recent reports from property markets indicate this trend.
Current property prices
Sample this, the rental value for two-bedroom house in Chinchwad East is currently between Rs 7,000-10,000 per month. These property values are almost same as they were two quarters ago. It’s the same story in other localities of the city. The capital value for apartment ranges between Rs 2,500-3,000 per sq ft in Dapodi area. For Kasba Peth region, the property rates for an apartment range between Rs 3,200-3,600 per sq ft. The capital value for plot in Hadapsar range between Rs 10,000-18,000 per sq yard, while the capital value for apartment are Rs 2,000-2,500 per sq ft.
Reasons for stabilisation
Property brokers and agents say that stabilisation in Pune’s real estate market reflects the trend prevalent in the country’s property segment. The country’s economy is facing a slow-down and it is the same case with the construction sector as well.
Ramesh Naik from Naik Navare Association, a property brokerage firm, explains that oversupply of property, especially in the residential segment is adding to this trend. “Most of the construction projects are in their initial phases. Hence, the property developers are in a hurry to sell their projects. The projects are priced comfortably. And the developers are luring home seekers with gifts and rebates. Some property developers are offering reduced Equated Monthly Installments (EMIs) and some are wavering parking fees for housing units,” says Naik. He adds that many transactions are happening the actually figures are difficult to compute.
Buying property abroad can make even the most seasoned property investor lose their financial sense especially when faced with an absolute bargain. Overseas property buyers who are in search of a second home abroad need to be aware of the ‘wow’ factor when searching for property abroad. Overseas property can be considerably lower priced than an equivalent property at home. Many overseas property markets are set to make short term gains and some investors rush in without taking full consideration of all the financial aspects of buying a home. Buying a property overseas is more than just the price of the property.
Failing to plan is planning to fail
Let’s get to grips with a simple but essential element in financing property abroad. Setting your budget. You know how much you can afford and you must be realistic in finding your actual budget. Take into consideration, legal costs, maintenance charges, money transfers, mortgage repayments, flights , accommodation and insurance costs to name but a few. Ask yourself if your mortgage rate went up would you be able to sustain the payments. Assume the worst with occupancy rates for a rental investment property and arrive at your bottom line. Once you have found your budget stick to it!
Overseas mortgages obtaining the best product will save you thousands
Overseas mortgages are a specialised field and it is an area that requires sound independent advice. The overseas buyer has to look at the options available. It is best to examine this with an independent financial advisor with expertise in the area of overseas property.
Raising finance for to buy property abroad it’s your choice:
How to raise finance for your purchase is down to each individual’s circumstances each method has its pros and cons.
1.) Raising finance at home
Re mortgaging an existing home to release equity is a popular option .Many overseas property buyers live in countries in which the housing markets that have left them with equity in their own homes. The UK property market is a good example of this many people have benefited from steady house price increases leaving them with small mortgages and large amounts of equity.
2.) Using a local overseas mortgage lender
Many emerging markets are getting to grips with overseas buyers and can now provide a real alternative for the overseas property buyer.
3.) Securing an overseas mortgage with an international mortgage provider
International mortgage providers can provide mortgages in a whole host of countries. The choice of countries is increasing as the demand for overseas mortgages develops. International mortgages advisors tend to be knowledgeable in this specialist field and provide overseas buyers with a real alternative to other financing options
Currency transfers an essential element in financial planning.
Planning your money transfers keeps you in control and lets you get the best out of your money. This element is often ignored by those buying property abroad and can cost you dearly. But how do you plan for transferring money abroad at a rate of exchange that you are happy with? Currency brokers can book good exchange rates for long periods in advance therefore protecting the overseas buyer from the uncertainty of the currency markets. Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% or more, the sterling amount that you will have to pay. Specialist currency dealers will normally offer you a better rate of exchange than your bank and provide a more personalised service.
It is clear that obtaining the best overseas mortgage advice and using a currency broker are essential elements when buying a property abroad
Dubai is among one of the most ideal places in world to live and work as it offers an opportunity to all to grow along with it, especially people related to real estate and property which is also a main pillar of Dubai’s economy. The real estate and property market Dubai has been prospering and evolving although there was a time once when the market badly suffered through the effects of global recession but it had great potential which made it survive the tough times and now once again the real estate and property market Dubai holds its standing among the best property markets in the world. The economic revival and the progress of the real estate and property market brought many new projects and a large number of ready to sell Dubai property. This ready to sell Dubai property like flats, apartments, homes and villas in Dubai are fully furnished and equipped with all the necessary requirements of modern day living.
Out of all these mentioned categories villas in Dubai are the most luxurious residence compared to any where else in the world and also the most preferred among the people on holidays and vacations. And this is the main reason why people fancy renting a villa in Dubai more than other available options.
Dubai is also among the most desired tourist destination and this is why most of the people visiting Dubai are on a short stay and usually acquire rental properties during their stay in Dubai. People that are on a business tour or on a work visa for a couple of years time normally do not buy a real estate property and rent one. Rent apartment Dubai is the most preferred choice for these people as rental apartments offer great flexibility in terms of budget and facilities they offers.
If you are looking for a rent apartment Dubai that not only luxuriously furnished but also provide services like house keeping and laundry served apartments in Dubai can serve your purpose, and if you are looking for more budget options then less furnished and self catered apartments are available to suit the budget and need of the tenant.
The Dubai technology, Ecommerce and media free zone also referred to as Tecom, is a futurist project encircling free zones devoted to modernization in the fields of IT, communication, media and data industries. A pulsating group of people designed for entrepreneurs, Tecom offices offers a variety of business opportunities for local, regional and international business organizations. Tecom is the new advancement in the business world especially in the Middle Eastern region, where Tecom offices have encouraged a rapid growth trend among the corporate community in the Middle East. And because Dubai is known for its quality of construction, modern architecture, and ability to surprise the buyer with its might and uniqueness and with a reputation like it has Dubai is the Best place in the Middle East not only to start a new business but also to cash on the opportunities that it has to offer for the business community, and with projects like Tecom it has created great attraction for the business community in the Middle East.