HOW TO BUY - Target Markets- Global Property Investment

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unning costs/community charges you will have and also what insurance you will need as a landlord. Have you allowed for ad hoc maintenance costs? Consider what currency you will receive your rental income in, and how you will pay management costs locally. If you’ve purchased with a mortgage, it’s usually more convenient to receive your rental income in the same currency. Then you will have to market your property – essential in today’s competitive marketplace. Use high quality photographs, making the most of the best features, and use clear wording on user-friendly lettings portals. Have you determined who your market is going to be so you can target your advert (and facilities?). Are you going to be aiming for couples or families? You need to emphasize the location, amenities and relevant features you can provide (high-chairs, bikes, etc). Don’t forget you might need special safety features for pools. Consider creating your own website, alongside using the popular portals; also consider adverts in local businesses. Clever marketing campaigns using social media and last-minute offers are other options. Of course word-of-mouth recommendation is the most cost-effective source of business, so leaving a lasting impression (providing a welcome hamper, basic store cupboard necessities or other such extras which will be remembered) is savvy marketing. Then ask yourself if you are going to be able to respond to booking enquiries yourself speedily, or is it worth using an agency or portal? Doing this all yourself can be hard work or impractical, and that’s even before day-to-day management of the property. Most people have a local person on hand to deal with key handover and potential problems – so don’t forget to factor in management costs of 10-15 per cent typically. Buying to let If you are buying a property expressly to rent, then having access to an established rentals management scheme might be preferable, assuming you are on a development or resort. Whether on a micro- or macro-level, location is essential. Think about accessibility: most people prefer to be within 90 minutes of an airport, and if it’s a beach location, that the beach is within a 5-10 minute walk. What type of climate or seasons do you seek? Locations boasting year-round sun or dual-season appeal can be the most lucrative in terms of the level of occupancy you can expect. Weigh up city lets vs. year-round sun (Canaries, Cape Verde, Caribbean) vs. golfi ng and ski resorts or tourism hubs (Italian lakes). How saturated is the local market with rental properties, and what will you need to provide to match (or beat) the competition? Are there any gaps in the market? You may need to provide use of a shared pool on a complex, or offer a private one that will enable you to command a premium. The type and size of property is important. New-build properties are generally easier to maintain, and amenities on communal developments (children’s pools, spa, gyms) can be used as selling points. The most popular size of property in many holiday areas are one or two bed apartments – again, do your research – but the provision of a sofa bed in the lounge that turns it into a “sleeps 4-6” adds fl exibility. In central Orlando, for example, four or fi ve bed villas with three bathrooms and their own pool are perfect for an extended family group or two families – the typical Disney holiday set-up (in the short-term rentals zone). When furnishing a property for rentals, many professionals recommend higher quality fi ttings and furniture that will stand the heavy wear and tear better than cheap stuff. This is especially relevant if you are targeting families. Also, don’t over-clutter and think of the type of things holidaying guests will need, from heaters to high-chairs and fi rst-aid kits. What kind of unique selling points will make it stand out against the competition? 2 BUYING YOUR PROPERTY TIPS TO.. RENTAL SUCCESS.. Do your research. Look for gaps in the market/demand when choosing a property. Consider climate, access and amenities when choosing a location. Know your target market. Buy and kit out to suit the target market in your chosen area. Is it families with young children or couples? Do things by the book. Are holiday lets authorised? Seek legal advice on local laws, obligations for landlords, tax liabilities and insurance. Make an impression. Add that little extra something to lead to repeat bookings and recommendations. Invest time and money in marketing. First impressions count. Sell your property at fi rst glance, use different media and innovative offers. AIPP CONSUMER GUIDE 21
SECTION CHECKLIST: WHAT TO CONSIDER WHEN BUYING YOUR PROPERTY Research, plan and make sure you know what you are looking for – and what you can expect from other people in the process … Find yourself a good agent. Try to meet them in person, seek recommendations and don’t forget that they are usually acting for the vendor. Is the agent licensed or a member of a professional body such as the AIPP? Ask lots of questions to test their market and local knowledge. Quality agents should be prepared to advise broadly on the region, the property and the buying process. If you choose to go on an inspection trip, paying your way can facilitate greater freedom. There’s no such thing as a free lunch. If buying new-build, check the track record of the developer, what have they built recently, has it been built on time, and how have their earlier projects fared? 2 BUYING YOUR PROPERTY For bank-owned properties and short sales, it is advisable to deal with someone who specialises in that field – you need expert experience. Don’t proceed without independent legal advice or sign anything you don’t understand, get it checked by your lawyer. Budget for the legal fees, purchase taxes, and all the additional costs you might incur as part of the purchase, including money-transfer fees, mortgage arrangement fees, and survey (where applicable). What about ongoing costs? Can you afford to own a second property? Don’t forget management costs if renting, income tax on rental income, insurance and community fees. Investing a little extra in marketing tools can help your property compete in the rentals market if this income is something you’re going to need to rely on. AIPP CONSUMER GUIDE 22
Page 1: HOW TO BUY OVERSEAS PROPERTY SAFELY
Page 4 and 5: WELCOME Welcome to the AIPP’s Con
Page 6 and 7: SECTION 4 ABOUT THE AIPP 32 The rol
Page 8 and 9: Emerging or depressed markets can o
Page 10 and 11: WHAT TO BUY - RESALES S econd-hand,
Page 12 and 13: KNOW BEFORE YOU GO or some property
Page 14 and 15: INSPECTION TRIPS lthough not the ma
Page 16 and 17: via an agent, bear in mind that an
Page 18 and 19: ROLE OF THE DEVELOPER ove them or h
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Page 26 and 27: MORTGAGES n the current climate the
Page 28 and 29: KEEPING YOUR INVESTMENT SAFE INSURA
Page 30 and 31: SIPPS: BUYERS BEWARE ou may be vagu
Page 32 and 33: SECTION CHECKLIST: WHO’S WHO IN T
Page 34 and 35: 4 AIPP WHAT THE BADGE MEANS? We rec
Page 36 and 37: CODE OF CONDUCT n a largely unregul
Page 38 and 39: 4 AIPP AIPP AWARD WINNERS Best Smal
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Page 50 and 51: AIPP MEMBERS DIRECTORY FINANCE Exce
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