Buying your vacation home for leisure and profit

Buying your vacation home for leisure and profit

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  • Silvia Denney
    Silvia Denney    Group moderator
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    New Investments, first check this factors and get real conclusions.
    What will attract the most to Real State investors from all around the would? Profit is the answer, yes but that is not all 100% true.

    Investors buy and sell property where they are attracted to, for instance: who doesn't like to have villages and condominums where they also can use with their families and friends? They will not invest in places where they are not attracted, where they can't see the immidiate use of their own property.
    If this investors are bulk buyers, they will probably will buy way before the construction starts and there is a greater risk in that. We never know if these projects will be completed 100% or they will be close because they failed.
    Finding the important factors that are necessary for success in the real estate business is a must. Mix together this factors and if the number is possitive you will have the perfect investment.

    What are this important factors?

    One.- The Country which I want to invest (including your own) must have a steady economy. With this we want to ask to our selves: How does this country have been doing in the last 10 years? How is growing and what industries are growing the most? Comparing year to year, are this industries growing at fast pase or are growing at very slow rate? Information and comparison are very important.

    Two.- Probably this Country is not doing very good right now but there is an currency opportunity. This is very important. Check for the last 10 years how the national currency has been behaving. It has been steady? Is it jumping up and down with large increases and decreases? How does it behave during crisis times? Check if this Country is tied with other Country due to commerce and loans. Remember that small Countries will always follow a stonger Country's Economy. Who is the Country that is tide with?
    Now, lets think that its currency has been steady for 85% of the 10 Years but, at this moment, its currency is very week (your currency is stonger so you can buy more for the same amount of money) Is it time to invest? You will decide that.

    Tree.- Where is geographically located your prospect investment? Important to know if this investment is just starting from scratch or are they builiding in their own land? Is it a place where Turism is always present? What kind of Tourism does visit there? Is there a specific market niche? (e.i. Golf, Scubba Diving, Convention premises, recreational cultural native resources, etc) Tourism goes there year around or is this a seasonal place? (e.i. just winter, just summer)

    Four.- What are they selling? Is it a fair price? You probably will have to travel there. You must experience yourself the place, and probably at this point there are things the you will need to learn in order to make living in this country. You must understand their culture and network with their people in order to be able to negotiate a price. The more information you have of other places like this, to compare with the one you want, you will feel that you will have the control over your negociaton.

    Five.- Make a promise to your self that you will observe more than one project but be sure that if you see the perfect one, you will be mentally ready to make a commitment right there. This will be possible if you did your homework before. If you didn't, you probably will fear the unknown and will not feel 100% satisfied with your new investment. Remember that this places will be sold for the first time just once and their price will be the lowest at this point.

    Six.- Communications, Transportacion- How are you going to get there? What kind of transportations the tourism usually use to get there? What is the porcentages of International tourism vs national tourism? From where is the most national tourism come? What transportation do they use? What is the quality of this transportations? How secure is to use national transportation? Are other important cities near by to visit? how many ours or minutes to the nearest large city?

    Seven.- Security - Make sure to search for Police stations, Hospitals, Schools, Drugstores. Make sure that Fire Stations are near by your new Investment.

    Now, immagine what is what you really want? Where do you see yourself in a not very far away future? If all this factores show you that the investment is safe, why not to buy if it is the right time?

    Silvia B. Denney
    • 11 May 2009, 2:04 pm