The point most agents on here keep missing is this;
I can put money in the Bank and get 5.5% yield, no worries, no fees, no selling costs, its liquid, no developer who might go bust.
So many of you say "x" is hot, for example Brazil or Romainia, but what does this really mean?
What if I want to sell my off plan property? THIS IS MUCH HARDER THAN YOU THINK FOLKS. The agent who sold you the property originally probably wont be able to re - sell it, afterall he will have moved onto another NEW development, which is HOT!
I've been at this for a while now. There is so much property out there all seeking the same dollars.
SO QUESTION ONE TO ALL THESE AGENTS:
1) Ask them - will it produce a net total return above 5.5% I could earn in the Bank AFTER ALL COSTS INCLUDING INTEREST LOST ON THE MONEY YOU PAY OVER TO THE PROPERTY, TAXES ETC
This means you need a gross return of about 10% pa to make it worthwhile.
I bet it wont..............
What happens when you die, how do your kids EASILY extract the money.
Back to Brazil, Romainia etc - next question;
2) When will the rent start and how many months per year will I get?
You will often find you end up with just a few months rent per year, which after your ongoing maintenance costs, lost interest and so on renders the investment pointless.
I recommend you buy now only where property prices have crashed. The US looks promising although getting the right investment, with no hassle and year round rent will still be hard work. The dollars low price also makes the US a prime candidate.
Forget the ****pits in declining industrial cities where no one wants to live though.
Id look for prime city real estate that has defined ongoing rental demand and no restrictions on renting the place out.
CAN ANYONE SUGGEST SOMETHING TO ME, I DONT KNOW WHICH CITY TO TARGET?
I want it on the Eastern side as flights not so long.
I want it cheap though, and will only consider places where prices can be proven to have fallen a good percentage.
A MUST FOR ME:
I will no longer consider a developer who wants me to part wioth cash up front. Why should I take the risk that he may default?
There are plenty of finished properties I can buy, so I will no longer bother with developers who want money up front.