Investment

No investment today offers the stability and simplicity coupled with the excellent return offered by investing in property. The stock market can offer high returns but it is a very volatile and dangerous place. This is especially true for the non-professional and there are so many external factors that can effect your financial investment. Add to this the fact that the major stock markets have generally been underperforming and property investment stands head and shoulders above any other forms of investment.  Investing in property is now seen as the number one way to provide long term financial security.

The Advantages of Investing in Property… 

Property is the wise investor’s weapon of choice. No other investment allows you to purchase with other people's money (The Bank) and then pay this back with other people's money (the rental income from tenants). To compare this with the stock market, on the graph below, where you put 100% of the investment funds in, you can immediately see why many investors are now turning to investing in property as a means to sustain a safe long-term investment. 

 

It is now widely understood that more millionaires have been made from the property market than through any other investment vehicle.

An Alternative to Pension…

Property investment has outperformed and showed none of the risk associated with traditional investment vehicles. In recent years we have seen stock market prices fall and pension funds obliterated. In comparison, property has continued to rise in value.  On average UK property prices have increased by 100%+ every decade in the last 100 years.  Similar patterns can be seen overseas and more so in emerging markets where investors can get in at incredibly low prices.  Many people are now investing in property as an alternative to a pension.

Why New Build?

Buying off-plan provides the best opportunity to find property with an attractive price and potential. The earlier you buy the less money you pay. You can benefit from capital growth with only a small deposit down and without having to make any mortgage repayments until completion. Prices increase from the developer and additional market growth. You even have the option to resell your apartment before completion and in many cases you can win upwards of 50% from your investment before the property completes.

The graph below displays the capital growth that can be seen when you buy before and during construction:

 

Pre-Release

For investment this is the number one time to get into any new development anywhere in the world.  It is good for the developer as money is coming in at the earliest stage and the investor is rewarded for this by getting in at the lowest price.

Release

This is the stage when the development is released on the open market.  Prices are very competitive as the developer hopes to sell as many as possible to lower borrowing from the bank.

Brochure

This is when the developer focuses on marketing to increase sales.  The more marketing, the more sales.  There is a common theme with any development where all the best units are being taken at this stage like the penthouses and corner units.

Show Room

When the show room is complete many buyers can now actually view what their apartment will look like.  This really pushes sales as it puts many buyers at ease that don’t like to work off plans on paper. Buyers change at this stage from investors to those buyers that are looking for a holiday home.  This is a good time to consider flipping (reselling your property) as getting in at an earlier stage has allowed you to pick the better and more favourable units.

Completion

This is where there is zero risk for any new buyer which is the largest part of the market.  Buyers can rent out their property straight away as opposed to holding a deposit in the project for 1-2 years.  The buy to let market has produced a growing band of happy investors buoyed up by the delights of solid capital growth and respectable rental incomes.

Buying an off-plan property is one of the best ways to have the property of your dream at a much more affordable price. The earlier you chose the more options available and you can pick the properties with the best views and the best orientation.

The property market will continue to grow and now is the time to lock in your profits as a property investor.  Whether you are looking to secure an additional source of income, make a quick profit, provide for your retirement, or build a substantial portfolio, Qudoo.com can help you achieve your goals! Don’t buy property before you have spoken to us first ! Register