Investors with excess liquidity are advised to hedge their bets and invest in offshore property in stable economies. If you’re new to the game, here are some tips that may help you on your journey.
1. Understand your investment mindset
An income-producing property is all about its value and its potential for gains and capital appreciation. Keep this is mind when choosing a property – it should not be an emotional purchase, like your home, unless you plan to live there in your retirement.
2. Identify your objectives
What do you plan to do with the property? Are you buying to let, with the aim of leveraging that property to grow a property portfolio? What is your timeline? Are you able to service the property? If you buy the worst property in the best area, are you able to renovate over a reasonable period? How much strain is that going to put on your cash flow?
3. Do your research
One of the biggest mistakes property investors make is not doing sufficient research. They then run the risk of over-paying and facing below-average returns. Take your time, especially if it’s your first property. If finding, buying, financing and managing an international property portfolio seems like a massive undertaking, that’s because it is. “That’s why it makes sense to engage the services of an independent professional service provider,” says Scott Irving, GM of Carrick Property. “They are familiar with the investment hotspots and can guide you through the paperwork and red tape, to help you grow your wealth safely and securely.”
4. Commit to the long-term
There are no short-term gains in property. While it remains a solid asset class, it is a long-term investment. On average UK property prices double every 15 years, according to the UK Office for National Statistics. “This means that whenever you choose to invest, if you do it with the intention of keeping the property over the long-term you will see price growth, especially when investing in areas with ongoing regeneration projects and sustainable tenant demand,” explains Bradd Bendall, Carrick Group Sales Director. “It’s not about timing the market, but rather time in the market.”
5. Location is key
You want both your capital and rental values to increase over the years. Carrick Property has identified promising opportunities in first world countries, carefully picking the best to reduce clients’ risk. Don’t be scared to invest in tertiary areas. “Not everybody has the budget for property in say London for their first investment but there are other areas within the UK that will produce fantastic returns,” says Irving. “The surge of young professionals who would rather rent and the enormous growth along the commuter belt as people move out of London, makes for a good investment case, especially in areas where infrastructure and regeneration projects are underway.”
6. Nothing beats professional advice
Real estate should be part of a holistic, integrated financial planning model. “The right advice is providing a diversified portfolio of assets in which the property component complements the fixed interest and equity-based investments,” says Bendall. “We establish where the client is today, where they want to be tomorrow and what the best way is of achieving this.”