Property -- Is there still profit?

[jondowns1259]

Hi folks, this is my first post here so be gentle:

I finish university next year and was wondering if property investment/development might be an interesting opportunity. However, the worlds markets seem to be in turmoil: the UK property bubble has gone with a bang; France appears to be falling and many of the eastern opportunities seem saturated. Is there still opportunities for a complete novice like myself?

I am looking for a little guidance of how I can get into this business. I have already had numerous offers from people claiming that 100% financing is still available oversees; however, I am asking myself is it worth the risk? Should I just sit out for the next few years or do you believe that there is money to be made?

Can anyone help? I would really appreciate some guidance. Anyone willing to help a young investor find his feat?

Best Regards,
Jonathan.

Contact: jondowns1259 -- It appears I am not allowed to post my email; however, it is a yahoo address.
Phone: On Request

 

[egray]

Hi Jonathan,

I'm no expert but it seems to me that it's times like these that the real investors make their money - prices are falling so now is a great time to invest; you'll get a lot more for your money and it won't be long before the crunch is over and the prices start back up again. I remember after the recession in the UK in the late eighties the doom and gloom mongers were predicting that property would never rise so high again but it certainly did. And then some.

I suppose the key is knowing when to buy and when to sell.

Good luck!

Ed

 

[jondowns1259]

Thanks for the comment egray.

I think you make a very relevant point. It’s not how the market moves that causes a loss/gain, it’s how we capitalise on that movement. The problem is, I have no idea about how to capitalise on the movements!

Best Regards,
Jonathan.

 

[egray]

Hi Jonathan,

I wish I could help with that! If I could I'm sure I'd have a lot more money than I have right now!

I actually used to work for an Overseas Property company, but I work in I.T. so don't know the ins and outs of it all. You could maybe look them up, they were very helpful to first time investors and offered pretty good packages (100% mortgages, rental guarantees etc)

I can't post links but you can find them via google, they're called Investments Worldwide.

Hope that helps!

Ed

 

[Investy]

jon

I would say the secret is research, research, research. Forget all the flannel agents give. Think outside the box. For example is an agent says "golf is in the pipeline" - call the local council and see if the plans are likely to be accepted.
SEASON - I think many people buy in places like Bulgaria without considering the rental season, which can mean the investment is in fact a non investment.

EXTENDING THE SEASON - I feel strongly about this subject. How will you get winter bookings? Most developments class themselves as something special, but in reality only a minority of developments have the potential to extend the season.
I went for Saidia Morocco as I think it has the best potential of any development to be year round, yet only 3 hour flight and Channel Fours 'A Place In The Sun' just voted it the 3rd best golf development in the WORLD, and it's only 1/2 built!!

The combination of factors I seek is as follows;

1) A safe investment (is it Government backed for example)

2) Little competetion (if you go for a typical Spannish development they all have a few shops and restuarants and sports facilities - but nothing stands out)

3) Huge amount of ONSITE (not, down the road) sports and leisure facilities

4) On site golf (again onsite, not down the road)

5) On site beach, again 'on site'

6) On site marina

7) Year round rental draw (like centreparcs has)

8) On site professional rental management

9) Several on site leading hotels as these give you free marketing spin offs (ie their effective marketing benefits you for free in the long run)

10) Aim for a net rental yield after all costs of about 10% pa. Dont forget the ongoing maintainance costs.

DONT MAKE THE POLARIS WORLD MISTAKE:
Polaris world investors report the rent barely covers thier expenses.
Despite being nice developments there are some fatal flaws as follows;
1) No onsite beach
2) Loads of competition
3) No on site marina
4) Not enough facilities to extend the season sufficiently


Bulgaria and Dubai I would forget, they are ones for non thinkers. makes me sound arrogant!

Good luck.

 

[jun222]

Hello,

I believe your best bet would be to invest in Dubai right now. Even though there is turmoil around the world your still going to make a profit here. What is lost here is those investors that were looking to make easy money by going into short-term investments, buying now and flipping in a couple months. Those people have fled the scene.

For someone like you, long term investment here is great. There are many projects that are still in development. Just do your homework and check it all out. You will not make any mistakes when investing here.

If you want details on these projects do contact me. The market here is a bit slow but in the long run you will be making the right choice.

 

[jondowns1259]

I appreciate all your responses. It seems that it's all about the research!

'Investy': Thanks' for the great advice. Your point about thinking outside the box is well made. Though following the trend can be worth while I see your point about finding opportunities for yourself. I guess that's how you become a 'trend starter' and not a 'trend follower'.

'Jun222': Though I do like the look of Dubai I'm not sure that it is right for me. Maybe for a seasoned investor; however, I think it could be leaving too much to chance.

'The Iain Stewart': I'm interested in the opportunities that you mention. I will contact you and request more information.

Thanks everyone, keep posting.
Jonathan.