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off plan purchase is the best you can do

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Old 23-05-2007, 07:52 PM
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Join Date: May 2007
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Default off plan purchase is the best you can do

Property is a tangible asset that gives people control over their future. Historically, residential property has doubled in price every 7 years and should therefore be viewed as at least a medium-term if not long-term investment. Although there will inevitably be short term fluctuations in market prices, property has always provided a consistent long term store of value for anyone who owns it.


Overall, 90 per cent of investors have either previously bought a property off-plan or are seriously considering it in the future, while 70 per cent believe it can represent a good investment opportunity in the current market so long as detailed research is undertaken.


Large financial institutions and pension funds are now investing more heavily in property (particularly commercial) because it offers sound long-term gains with minimal risk, compared with exposure to the Stock Market.


The property market is relatively stable and, unlike many investments, is not subject to rapid overnight fluctuations. Property offers a safe investment provided the correct approach is adopted.



The Power of Leverage

Leverage is the term used to describe the investing of little or none of your own money to obtain substantial financial gains. Because of the widespread availability of Buy-to-Let mortgages, investors are able to leverage their money and achieve massive percentage gains from a relatively small investment.


When purchasing property, it is normally possible to borrow money from a lending institution. The majority of lenders will advance up to 85% of an investment property's value, therefore allowing you to build a portfolio of properties with a personal investment of as little as 15% of the total purchase price, provided of course you buy correctly.

Off-Plan
The prices of the new developments generally increase during construction. When the buildings project is released, it is common that values will increase on average by 10%; plus a further 10% when the show flat is finished, then a further 10% when the gardens and outside areas are completed. All this subject to the development, number of units, country etc.


Investors familiar with this process obtain very interesting benefits. They can reserve one or more apartments before starting construction. If this is the case, the developer will generally ask the investor to pay between 10 and 35% of the total price of the property whilst construction commences and the rest will be paid in installments until completition.



PROFITS ARE MADE WHEN YOU BUY NOT WHEN YOU SELL

Buy well!!! Know when and where to buy.

Depending on the location of a development, they all generally increase in price an average 10-15%, sometimes more.

Profit is made on total price, even if only a down payment is all that has been paid.

Developments are built over a 1-2 year period.

All properties can be re-sold at any time.


Rent after purchase
As a concept, Buy-to-Let works so well because the rent you receive would normally be more than the interest you pay on your mortgage. Your holding cost is therefore nil, allowing you to benefit from the property's long term gain in value at zero cost to yourself. This only works if you are able to find a tenant, so it is wise to keep informed about the rental market.



Rental demand continues to grow at a rapid rate and is supported by many factors, including:


House prices are too high for many potential buyers (particularly first time buyers) who are choosing to rent instead.

An increasing number of single people and students prefer to rent, as it gives them flexibility of movement.

Shorter working contracts are leading to individuals seeking greater flexibility and mobility.

Loss of social stigma associated with renting.

An increasing level of personal spending, and the consequent decrease in saving, mean that fewer people can afford the deposit necessary to join the property ownership ladder.Is there a good infrastructure?

How much rent can I charge?

What ever the market rate is for your property. Obviously in peak season the income will be higher. Importantly your investment property should take into consideration the local amenities such as entertainment, shopping, access, facilities which will determine the rental value. Golf shares can also be important.


Fractional Ownership with Family or friends
What is the difference to Time-Sharing?

Timeshare is normally owned for weeks and Fractional Ownership gives you freehold rights so the share can truly be inherited.



Fractional Ownership interest continues to set new trends in the real estate market. The scheme is a rapidly growing alternative to the high cost and financial obligation of whole or outright ownership, allowing owners to buy a home for a fraction of the usual cost.


The deal is family members, friends and investors can join forces to buy a place. Costs are cut, outgoings are reduced and everyone gets to enjoy a place that's much more than just a hotel room.


Fractional ownership offers individuals the opportunity to own part of a fabulous property. A lifestyle and luxury. We're talking apartments on exclusive developments will all types of facilities, pools, club houses, golf courses. Luxury villas with private swimming pools or apartments with breathtaking sea views. Villas, Apartments and Town Houses that would otherwise have been sold outright can now be purchased in multiple owner shares.


High quality locations and developments or properties you may not normally afford in the best locations .


One of the main reasons people buy fractional, even when they can afford the entire purchase, is that the expense and responsibility of ownership is reduced unlike owning the property outright. Many of the fractional developments are in high-end resort locations, where condominium or property ownership is priced at the high end.


This makes the second home truly a vacation, as you can simply go there knowing everything is in order and organised and the investment will be reflected in the high quality experience during your stay. At the same time, you have the deed to the property, and you can pass it down through generations in your family, or resell it through a broker.

You need a recommended english speaking solictor , regarding freehold purchases and who is also experienced with the turkish laws of fractional ownership. All purchases and set up of turkish companies in Turkey are made through notaries.

We live in Turkey and invested - for more info please contact me.
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