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Re: Can anyone explain me about foreclosure real estate investing???? -
26-08-2008, 02:52 PM
HI,
May be i can help you some. I found one good article on this issue. Let me paste it here.
The ever-increasing demand for off-plan property overseas is not without a reason. In fact, it makes great business sense to buy the property off-plan, which may cost you a fortune after completion.
Here are some of the advantages of investing your hard earned money in an off-plan property overseas:
In a market, where real estate prices are prone to violent fluctuations, there’s no better option than off-plan. By buying off-plan in such a market, you are ensuring that you pay considerably reduced amount today, i.e., the prevailing market price. You never know where the prices end up by the time construction is complete. And in a country, where economy is booming and tourism flourishes, normally, real estate prices are more than likely to go up. Thus, considerable savings is a definite high point in any off-plan real estate investment overseas.
If you are investing off-plan in a property that is in its early stages of construction, and if the rules and regulations allow, then you have the privilege to give your inputs into the layout and finish of your chosen property. According to your tastes and preferences, you can suggest colour of walls, tiles, carpets, kitchen and bath accessories, etc. This way, you’ll be ensuring customized treatment of your home even on a foreign land
One of the major highlights of the off-plan property is the stage-payment often required by the builders. This simply means that you book the property by making a small down payment, and make balance payment in manageable batches as and when required by the developer. According to your financial health, you can opt for different payment plans offered by the developer of an overseas property.
Quite often, the final payment is the biggest one. When it’s time to make the final payment, the astute buyers, who had a simple profit motive to buy the off-plan property in the first place, put the property in the market for sale. Of course, he’ll take such a step if the real estate market in that country is bullish and he is assured of making handsome profits by selling it at this stage.
Some off-plan investment plans also offer guaranteed regular rental yields after completion. This is common in countries and regions, where tourism or service sector flourish, and as a result, the demand for rental property is always on the upswing. The buyer has dual satisfaction in this case, of owning the property as well as getting assured rental income without taking the pains of renting it out himself or herself. The entire risk is borne by the developer. If the rental income from the property exceeds the guaranteed amount, he takes out the profits, and if it is lower, he assumes entire loss, and makes the agreed payment to the owner.
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