Overseas Property Investment

Why property, some people ask when looking for an investment. Well, as far as I am concerned, property investment is, and always has been, the most powerful type of investment for building wealth. It has been said that over 90% of the world's millionaires got there by owning property. The reason property is such a powerful way to build wealth is due to one key concept: leverage.

Real-Estate always has been, and is likely to remain, one of the most solid investment opportunities. Although the market may suffer short term ups and downs, if you are willing to hold on to an investment property for a long period of time, it will almost certainly be profitable. Investment property, particularly in urban centers, can also be extremely profitable in the short term.

Location
The old real-estate adage remains true to this day. Consider development trends carefully when looking into a property. Almost any real-estate expert will tell you that it is better to own an inferior building - in terms of structure and design – in a good location than a great building in a poor location. Remember that almost everything about a building can be changed and improved except its physical location. When looking at an investment property, keep in mind that you want people to live / work there, so look at

Start Small
Investment property, obviously, involves putting down large amounts of money and sometimes waiting a long time for your payoff. If you’re not in a position to buy a large property right away, consider something smaller: a condo unit within a larger building for example. If you keep in mind the location advice above, small properties can still turn into profitable short term investments. what’s around it and the neighborhood trends carefully.

Before You Invest

Strategy as defined here would be the science of planning and directing exactly how you intend on proceeding to maximize your profit potential through investing in real estate. Without a sound strategy and consistently executable tactics you may find that the result of the long, hard efforts have only led you to frustration and a less than sought after result.

Things to Consider
Planning to move out of the area in a couple of years? If so you may be better off not buying a home now. The cost of selling a house generally falls in a range of 7% - 8% of the sale price which may be more than the appreciation of the house.Thinking about changing jobs? It might be best to wait until after your purchase.
Look at your work history. Is it sporadic or did you just start a new job? Lenders like to see someone with a steady work history and with job changes in the same line of work.
Lenders will require your work history along with past tax returns. Look at your credit report before you go to a lender. It is not uncommon to find problems with reports, especially if you have a common last name. If you find a problem, start with the reporting agency to clear it up. It is common to have a late payment at some time or another. These problems can usually be taken care of with a letter of explanation from you to the lender

If you're just beginning or starting out with a small amount of capital then you will most likely have to find _ em and fix'em on the first one or two properties. By finding them and fixing them, then selling on your own, you will limit the amount of initial expense that you incur. Naturally you will keep more of the profit as a result. The trouble with this technique is that you eat up valuable time that could be more profitably spent on finding more great deals!

The Business Cycle and Buying a Home

Recession and Expansion

There are times when the economy is brisk and everyone feels confident about his or her prospects for the future. As a result, they spend money. People eat out more, buy new cars, and….

…They buy houses.

Then, for one reason or another, the economy slows down. Companies lay off employees and consumers are more careful about where they spend money, perhaps saving more than usual. As a result, the economy decelerates even further. If it slows enough, we have a recession.

During such a time, fewer people are buying homes. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.

In the business cycle of real estate, there are buyers' markets and sellers' markets...and some markets in between. It is all based on supply and/or demand