Cheap Investment Property Sales

Advice on Loans, Where to Look and Investing for Retirement

Aug 6, 2009

Property investment is still considered one of the safest ways to invest money. It can be profitable and provide a nest egg for retirement.

The choice of investment properties ranges from apartments, houses, condominiums, mobile homes or vacant pieces of land. Many people opt to purchase a cheap property in a foreign country such as in Brazil, Morocco or France with the hope of retiring there one day, renting it out in the meantime.

Where to Find Cheap Investment Properties

When investigating an area, get copies of local newspapers and newsletters that may shed light on what has been happening in the area that may affect the value of the property. There may be a reason why a property seems to be exceptionally good value. Talk to people in the local community to find out what issues there are and research to see if there are potential zoning changes or land use changes planned.

Find a competent, reputable real estate agent who knows about investment properties in the area. Research on line to find a list of agents and interview agents before choosing one.

Investment Properties in Various Countries

Buying property in another – sometimes cheaper – country has become extremely popular over the last few decades. Popular buys include homes in Spain, France, Turkey, Bulgaria, Cape Verde islands, Dubai, Morocco, Brazil, Chile etc.

Types of investment properties vary from buying off-plan, leaseback, buy-to-let properties and guaranteed rental schemes. Laws vary in each and every country and every country's property market is different. Consider the economy of the country and whether the market is stable or not.

There are many reputable agents on who specialize in purchasing property in foreign countries who will know the legalities of the contracts entered into. However, it is never a good idea to blindly trust an agent, get key documents translated if necessary to understand them fully before signing.

Maintenance and tenant turnover costs: When tenants leave there can be a lot of expenses. Usually cleaning, repairing, replacing carpets or damaged fittings as well as advertising costs for a new tenant can hike up costs. General maintenance is on-going. It may be worthwhile to factor in the cost of hiring someone else to do the maintenance work.

Agent's fees: The management of the property can be left in the hands of a rental agent who would typically ask for 10% of the rental income. The agent is responsible for making sure the rent is received, should handle evictions if necessary and would find new tenants when the need arises. Make sure the agent is reputable and reliable.

Insurance Costs: Insurance on investment properties are usually higher than properties that are owner occupied. Public liability insurance should also be considered.

Investment Property Loans

Mortgages for investment properties can take the form of a second mortgage or a mortgage in the local currency. Equity release or a second mortgage may seem like a cheap option at the moment but remember that one or both homes could be lost if a purchaser fell behind on mortgage payments. Be sure to seek comprehensive legal, financial and tax advice.

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