Purchasing an overseas property for investment can reap excellent returns in comparison to various other forms of investments, provided suitable research is carried out. Selecting the correct growth market for short, medium or long term investments is essential to enable the intended returns.
Along with the capital appreciation gained from the growth in the particular chosen market, further returns can be obtained from rental income. Buying a property with the intention to place it onto the rental market can produce strong yield returns in the most sought after markets.
Areas with strong rental demand for short term letting options are normally within regions with tourist attractions. Tourism stability is essential for ensuring the maximum potential yield returns from an investment property. The length of the rental seasons determines the financial potential from short term letting property, with the highest gains obtainable during the peak seasons.
Self catering accommodation is becoming increasingly preferable against hotel accommodation in locations where visitors tend to stay for a week or more. City centres, coastal resorts and ski destinations are the most popular locations for buy-to-let properties, with additional interest in rural areas with good communication to services and amenities.
Self catering properties provide tenants with the comfort of a private home, along additional privacy as a preferential option against hotel accommodation. Families and large groups of visitors further benefit with cost effective options and the ability to be together, which cannot always be guaranteed when booking hotel rooms in peak seasons.
When purchasing an investment property for buy-to-let purposes, often new developments have professional management services in place. This on-site maintenance assists buyers with the additional knowledge that their property is fully taken care of. Servicing the property between tenants, along with managing bookings and minor repairs, assist in keeping the property in optimum condition enabling maximum potential gains from the letting market.
The most sought after investment properties for buy-to-let purposes are modern one and two bedroom apartments in new developments, with extensive ranges of facilities and services. Similar to the amenities found in hotels, the properties are often specifically designed for the letting market. The location of the property can also make a huge difference in highly competitive areas. Beach front, golf courses, city centres and world class ski resorts obtain the highest demand from potential clients.
The overall benefits to owners of buy-to-let properties include increased returns on the investment from both yield potential and the capital appreciation obtained once a suitable moment to re-sell the property has arrived. Rental returns can be obtained on the property throughout the year, while maximum returns are generated in the peak and high seasons.
Personal use of the property can be arranged, essentially providing a holiday home in a popular overseas tourist market. If the correct location is obtained, the property can often pay for itself, with the yield returns covering any financing and maintenance costs. Often the additional revenue is used by owners to pay for an enjoyable personal holiday, staying in their investment property.
Whether an overseas investment property was specifically purchased for buy-to-let purposes, or as a straight forward investment, opportunities abound with the ever increasing letting potential in sought after locations. The additional revenue to be earned as the capital returns appreciate enables an excellent option for all overseas property investors to consider.