Quote:
Originally Posted by Fatman
Thanks for your reply.
As i said, the leaseback scheme seemed good as it has guarenteed rent.
Ideally i would like something with capital growth but am open to all options.
I perhaps would want usage for a couple for a couple of weeks a year and a solid exit strategy is a must.
If you have any tips of what other things i should research, that would be great
Andrew
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Hi Andrew
Leasebacks and guaranteed rentals often appear to ge good because they appear to keep risk to a minimum, however be careful as quite often the purchase price is hiked up to compensate for the rental, and often the yields are low in comparion to what you could achieve outside of the scheme.
Rental pools and profit share schemes are a better option as they often can give a much higher yield and although nothing is guaranteed you can certainly find quality investments where the figures stack up against financing options.
Look for a market that is in the expansion phase of the market cycle but look at local economy and GDP too. This will give you an indication as to potential end users and ultimately buyers of your resale property.
Also consider local tourism, and feasibility of actually getting there. If you are planning on using the property yourself, this will be of increased importance.
As I said before, ask questions and talk to other buyers. there is a wealth of knowledge on this forum........true recommendations are a great start to your research.
Always use a laywer to carry out your due diligence and complete your purchase process and always use a reputable and honest agent.