What Is An Investment Property?

Put simply, an investment property is any real estate that you purchase with the sole purpose of generating income.  This income is usually generated by renting out the house, either as a permanent residence or holiday accommodation.

Am I Ready To Buy An Investment Property?

The buying process for an investment property is very different to the process involved in buying a family home.  You’ll need to make sure you’re ready for the expenses and responsibilities that come with being a landlord.  Here are some qualifications that you should meet before proceeding.

You Should Be Financially Stable

This is even more pertinent to investment properties than buying your own home.  Most investment property mortgage lenders will require you to put down a minimum of a 30 percent deposit; this is generally not needed for your own home.

You’re Sure You’ll See A Return On Your Investment

You should always calculate your return on investment (ROI) before purchasing an investment property.  ROI is the net annual profit, divided by your cash invested, times 100.

To estimate your annual rental income, take a look at the monthly rental of other similar properties in the same area, then times by twelve.

You Have Time To Manage Your Investment Property

Investment property management can take up a lot of time.  You’ll need to advertise the property, interview tenants, run background checks, make sure that rent is paid on time, perform routine maintenance and take care of repairs.

If you don’t have time to do this, consider buying an investment property that is totally hands-free and stress-free with guaranteed rental returns and management and maintenance included.

Alternatively, Hire A Letting Agent

Letting agents take the stress out of property maintenance and tenant management.  In exchange, they’ll take a percentage of your monthly rental income.

They’re a great choice if you happen to live a good distance from your property, or if you don’t have the skills to undertake maintenance and repairs by yourself.

Get Buy-to-Let Insurance

Buy-to-let insurance is also known as landlord insurance, and provides cover for the property and contents, as well as liability.

Buildings insurance

Before you can take out a mortgage on a property, most lenders will require landlords to prove that they have taken out buildings insurance.  This insurance will pay out if your property is damaged or destroyed, and will cover the costs of repair or rebuilding.

Contents insurance

Even if you’re not planning on furnishing the property, it’s a good idea to get contents cover in order to protect your carpets, curtains and any white goods.  Your tenants will be responsible for insuring their own belongings.

Landlord liability

This insurance will cover you in the event of the injury or death of tenants or visitors on your property. It’s usually optional, but it’s necessary to have a minimum level of liability cover in place in some cases. These include renting to students or in certain local authorities.

If you have any questions about the process of buying an investment property, give us a call on 03333 034 767 or send us a message.

The post What Help Do You Need When Buying An Investment Property? appeared first on Lujo Investments Worldwide.

It’s easy to see why Spain has become a favourite destination for foreign property investment.  The fantastic year-round climate, comparatively inexpensive cost of living and close proximity to the UK have all made Spain the ideal location for those looking to purchase property overseas.

The Dream Lifestyle

Legal foreign residents make up 2.8 million of Spain’s population, and tourism figures are ever-increasing (the current COVID blip notwithstanding).

Easily accessible from the UK, Spain has links to the majority of regional airports.  Also, you can get there in as little as two and a half hours.

Spanish property prices are still much lower than those back home.  This allows many people to afford the dream lifestyle of owning a holiday home or retiring early, who would not be able to afford such luxuries in the UK.

Flourishing Rental Market In Spain

Investing in a good property in Spain, in the right location, will give you substantial rental potential with excellent returns on your investment.

The right property could potentially be rented out for six months of the year to cover costs, with the accommodation available for your own use, free of charge, for the remainder of the year.

Get On The Property Ladder in Spain

Struggling to get your foot on the first rung of the property ladder in the UK?  Due to the relatively cheap property prices, there’s a recent trend amongst British under 30s to buy their first property in Spain.

It’s much easier to do than you’d think, as the path to buying Spanish property is well-trodden.  There’s lots of expert advice available, and as long as you use a decent, independent lawyer, it should all be fairly straightforward.

Right now, Spanish interest rates are low, and there will soon be a huge demand for rental accommodation following the imminent lifting of COVID restrictions.  All in all, that means that right now is the perfect time to make the intelligent decision to invest in Spanish property.

Off-Plan Investment in Spain

Buying off-plan means making the decision to purchase a property before building work has finished. Sometimes, this means that you will commit to buying before construction has even begun, but not always.  Whether it’s almost finished, or not started yet, it’s still technically known as an off-plan purchase.

Purchasing Early Means Lower Prices

As construction progresses, prices will steadily begin to rise.  Units sell much faster when buyers are able to view them.  It’s best to buy your property as soon as possible, during the earlier stages of development when prices are far lower.  Those people who make the decision to invest in a development early will always see the greatest return on that investment.

The first properties to be sold in any given development will always be the best units.  They offer the highest capital appreciation in the shortest time frame, and usually demand the highest rental incomes.  Penthouse apartments are a classic example of this.

Where To Buy Property In Spain

Arguably the best-known part of Spain amongst foreigners, the Costa del Sol has something for everyone.  A solid choice of location for property investment in Spain, it’s one of the most popular relocation spots in Europe, and the right property will give you a generous rental income.

The Costa del Sol has some of the best beaches in Spain, and has plenty of affordable property.  Many of our properties in the Costa del Sol are available off-plan right now.  The sooner you commit to a purchase, the greater the return on your investment will be.

Properties In The Costa del Sol

Benahavis

The community of Benahavis sits slightly inland from the Costa Del Sol coast, between the towns of Marbella and Estepona, and is one of the most sought-after locations for property investment in Spain.

Perfect for peace and quiet, the luxury properties in Benahavis are some of the most exclusive in the Costa del Sol.  Take a look at some of our properties located in Benahavis here.

If you’re quick, you’ll be able to buy them whilst they’re still off-plan, and at the lowest prices.

Estepona

Alternatively, between Marbella and Manilva lies one of the prettiest towns in Spain, Estepona.  Remaining true to its fishing village origins, you will fall in love with the white-washed houses, colourful geraniums and traditional Spanish seafront promenade.  Check out the beautiful properties located in Estepona here, most of which are available off-plan.

To talk to us about any of our properties in Spain, give us a call on 03333 034 767 or send us a message.

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Although geographically in Asia, and surrounded by many Middle Eastern countries, Cyprus is politically a European country and a member of the European Union.

Acquiring property in Cyprus, either as an investment or as a second home, has always been a popular choice among foreign investors.

Cyprus Investment Incentives

To lift Cyprus from the economic decline it experienced prior to 2015, Cyprus’s government had to revitalise the nation’s general investment appeal. These investment schemes worked, and have made Cyprus one of the best places to invest in property in Europe.

Just a few of the government incentives to invest in property in Cyprus include:

• One of the lowest corporate taxes in the EU at just 12.5%
• Reduced residential and commercial property tax rates (VAT)
• Residential property only attracts a 5% VAT tax on the first 200 square meters of the primary permanent residence property.
• No inheritance or succession taxes
• Very attractive personal tax regime for international professionals and individuals not resident in Cyprus.
• Tax deductions to encourage investment into Cypriot startups.

These tax incentives, and far more besides, have contributed to establish Cyprus as a cosmopolitan business centre with many investment opportunities across a wide variety of sectors.

Where To Buy Property In Cyprus

Limassol and Paphos are two of the most popular places to invest in property in Cyprus.

Many Brits who emigrate to Cyprus choose the active and cosmopolitan city of Limassol, and it’s easy to see why.  The selection of international schools, along with many companies basing their offices there makes it a popular choice.

If you’re thinking of buying a property in Cyprus to rent out to tenants, Limassol is a great location, as rental properties are high in demand and short in supply.

Nearby Paphos has the second largest airport in Cyprus, and it’s generally considered to be cheaper to live there than in Limassol.  However, many people work in Limassol, and therefore often choose to commute from Paphos.

Properties In Limassol And Paphos

If you’re after a more laid back environment, or a private house, then Paphos is likely to be more to your taste.  If you’d rather invest in flats in a bustling city, you’ll find what you’re looking for in Limassol.

Take a look at some of our other properties in Cyprus here.  To talk to us about any of our properties, give us a call on 03333 034 767 or send us a message.

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However, knowing where to start in property investment can seem quite daunting when you’re a complete beginner.

We’ve published this easy to follow guide, which will explain everything you need to know when buying your first buy-to-let property.

Property Investment For Beginners: Where To Start

Property is generally considered to be one of the safest investment options you can make.  It’s a great way to build a new or additional income and to ‘put something away’ for future generations.

Having said that, it’s important to note that no investment comes without a degree of risk.  Here are some things to take into account, to ensure that you start off on the right foot with property investment.

How You’ll Finance Your Property Investment

Obviously, the first thing to consider is how you’re going to finance your purchase.

For a buy-to-let mortgage, you’re going to need a good deposit.  The majority of buy-to-let mortgages require that you put down at least 25 percent as a deposit.  So if you want to buy a £100,000 property, you’d need a deposit of £25,000.

On top of the purchase price, here are the things you’ll need to factor into your budget:

• Solicitor’s fees
• Survey costs
• Insurance costs
• Stamp duty – note that you will pay an additional 2% surcharge on top of regular stamp duty rates for a buy-to-let property

In April 2021, the pre-COVID stamp duty rates will come back into effect.  This will mean that you’ll pay stamp duty on anything over £125,000.  Obviously, that means that the ideal time to buy is right now, if you can.

Which Property Should I Buy?

There are several things to consider when deciding which property you should invest in.  One of the most important decisions you will make is the location.

You’ll need to think about:

• Property prices in the area
• Average rents in the vicinity
• Any investment or regeneration that is planned locally
• Employment and transport links
• Who are your target tenants?

Where Can I Invest In Property In 2021?

We have many investment opportunities available across the UK.  In particular, with a population of over 550,000 we recommend Manchester.  Manchester homes currently have an average price of £152,000.  This makes it much cheaper to buy a property here than in London.

Property Investment In Manchester

Investing in a buy-to-let property in Manchester is a great plan, as there is a increasing demand for quality rental properties to house the city’s many workers, students and graduates.

With several train and tram stations, along with the M62, M61, M56 and M60 motorways, not to mention a major airport, it’s seriously well connected.

Thriving business, a buzzing social scene and world-class leisure facilities provide a fantastic lifestyle for young professionals and young families.

For any further advice on investing in property, or to talk to us about any of our properties, give us a call on 03333 034 767 or send us a message today.

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Now is the perfect time to invest in the state of fun and sun.

Retirees and investors alike have always favoured Florida, thanks to its low unemployment rate, growing population, and strong economy.

Investment Opportunities Await You in Florida

Topping the list for great investment opportunities is none other than Orlando; one of the most ideal places to invest in the property market.

The great popularity of Orlando is down to many reasons. Its location on the Sun Belt Region of America ensures it enjoys a wonderful climate.

Orlando also serves as the home to some of the world-famous amusement parks including Disney World, Sea World and Universal Studios.

For golf enthusiasts, there are dozens of stunning golf courses.

In addition, art-lovers can enjoy the Orlando Museum of Art and the Mennello Museum of American Art.

Tampa, one of Florida’s most dynamic cities, also offers investors lots of opportunities and choices. Its booming local economy, job development and growth make it a worthwhile place for investment.

Kissimmee, Orlando’s smaller neighbour to the south, also proves to be among the best areas to buy Floridian investment properties.

The location is an easy and short commute from Orlando and all its attractions, which means that Kissimmee is an extremely popular choice for families.

As more people flock to Jacksonville, it does not come as a surprise that it is also among the best cities for investments in Florida.

The region boasts a growing bioscience community.  Jacksonville has also been ranked third in the list of best US cities for jobs, which makes it a particularly good prospect for investors.

Exciting Activities to Do in the Entertainment Capital of the World

There is simply no shortage of things to do and try in Florida.

With its more than 240 days of sunshine per year, the residents of the state get to spend most of their time outside, trying everything from cultural experiences to water sports.

Some of the most popular water activities in the state include swimming, scuba diving, boating, fishing, and paddle boarding.

There are also several water sports centres offering water-skiing or jet skiing, or for a bigger adventure, there is the thrill of parasailing or sky diving.

There is so much more to offer than just being the world’s entertainment capital and the State’s number one tourist destination.

Indeed, the sunshine state of Florida offers a bright and fun future for everyone!

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