Offshore Property Still Represents Best Growth Prospects.
Recent Treasury forecasts predict UK house Prices to rise by 15% over the next twelve months. For South Wales property investors this will provide some relief and may signal a reversal in their fortunes. For the past four years both property values and rental income have been on the slide. Many investors are now having to contribute towards mortgages on rental properties as achievable rents are less than the mortgage payments. Certainly not what they had hoped for when they bought rental property as an investment for their future.
While UK residential investments struggle to make economic sense yields from property rental overseas have never been stronger, especially in areas where British, American and European holiday makers visit. in most of the better resorts in the Caribbean, Egypt and Cape Verde a 10% annual return on investment is both achievable and verifiable. Compare this to returns of between 0% and 5% here in the UK and you can see why offshore is becoming so popular.
For anyone considering buying a rental property offshore the questions you should ask your agent or developer are exactly the same you should ask of your UK estate agent.
1. What sort of deal can I get for cash?
2. Can I get a mortgage to pay off the balance and fund this out of the rental income.
3. What are the ongoing costs of ownership.
4. Is there strong rental demand in the area where I want to buy
5. Is it easy to find tenants to occupy my property
6. Who will manage my property and can I trust them to remit my rental and look after the property
7. Can I use the property if it is unrented?
8. What Guarantees do I have
9. How difficult is it to sell the property if I need to sell quickly
If your dream offshore property is a home on a tropical beach where you visit for one month a year and rent it for the rest of the time you should stop and think. How do you promote this property effectively so that it is fully occupied? Who will look after it, clean it and ensure that it justifies the rental you are charging? How about security? Just these few issues alone would be enough to dissuade most people from considering buying offshore. But wait, what if your dream offshore property was luxury room in an all inclusive 5 star hotel; a hotel with a very famous name on the marquee and all the cache and recognition that this brings?
You would never need to worry about occupancy; the hotel group would market the hotel for you to a worldwide audience. It would always be maintained to the highest standard and security would come as part of the package. You could charge much more for rental because your tenants would be all holiday-makers expecting to pay extra for a deluxe holiday. In fact most people on holiday expect to pay up to six times more per night on average than they would to rent their home in the UK.
As the owner of an offshore property, you could agree a guaranteed 10% per annum income or take a 50/50 split on the rent from day one. Whichever way, the returns can be exceptional in the right resort. Your income would be audited by an international firm of accountants and promptly paid to your designated bank account.
Mortgage ID and our sister company Island Investments have been dealing in property in exotic locations for years. We know the best offshore opportunities and would be delighted to wow you with some of our best... For the price of two bedroom student house in Cardiff, Newport or Swansea you could own
a. two frontline 5 Star hotel rooms in a Red Sea resort with 7 million visitors a year,
b. a poolside apartment in exotic Cape Verde or a
c. Junior Suite in exotic Dominican Republic with close sea views and easy transport links .
Best of all you can stay there for FREE for up to five weeks per year.
If a 10% tax free return on your investments sounds puts a smile back on your face and you like holidays in exotic locations then contact Mortgage ID for a Brochure Pack and an Invitation to a seminar at a hotel near you
Telephone Greg Oxenham at Mortgage ID on
02920 394400
or
visit www.mortgageid.co.uk
