investment
Property Market Potential
All over the world people are growing increasingly panicked about the state of the property market. Markets in almost all the world’s big economic powerhouse countries have been flat and inaccessible for at least five years. Buying a home is impossible for most people, as the mortgages have been driven sky high, and loan repayments seem exorbitant in a flat economy. However, there is potential in the property game if you shift your focus away from direct ownership of space, and into creating something useful.
Owning versatile space is useful, if you can afford it, but working with an existing home is a lot lighter on your pocket and there is a lot of money to be made. Here are a few ways in which you can explore the property market and make it work for you.
Conversions
In the past, people would look to space and develop something from the ground up. The house that you built would be a massive lifetime investment, created and shaped over time. This sounds romantic, but the truth is that such a huge investment is a long-term drain on your funds. You would need a loan to buy the ground, and then consistent loans to pay off the price of building things. Smarter property investors are now looking to convert existing properties into something far more useful, and this is true of business-minded buys and personal goals. Converting an existing building is the future of property investment. Old churches, school buildings and barns are versatile spaces that are cheap, and quite easy to fix. An old church requires very little to become a beautiful guesthouse, and an old barn can be suped up into a home that will sell despite the market trends towards caution. You are more likely to be able to afford a “derelict” building than space or something already built. You can then negotiate a competitive loan because you need a lump sum to get going instead of constant loans. If you have the intention of selling once the conversion is complete, or renting, the bank will be willing to help you reach this goal.
Foreign Markets
Cheap land in a developing country is simply begging for your investment. You can buy the land and wait for it to grow in value overtime – South Africa and India are great spots – or buy and convert a space in Europe. The world is your oyster.
This guest post was written by Victoria. She is a stay at home mom that is currently learning about short selling and Canadian REIT.