Investment Strategies

Own use of an investment property

Although there are some exceptions, for example certain “Leaseback” properties in France where one can obtain a couple of weeks of own use without loss of income, it is a golden rule not to mix business with pleasure.

Selecting a home to live in is a very emotional decision with our heart’s pulling a lot of the decision strings on location, garden, locality of amenities etc., which may not be what the average person would choose (thank goodness we are all different)

Selecting an investment property should always be a rational decision on how the facts stack up. How much money can I make and what exit strategy is in place? These are the important factors.  Whether it has a blue door or a south facing garden is not!

So let your head rule investment decisions, not your heart.

What would make the perfect property investment?

Well maybe something like this:

1. A low deposit required so there is only a small cash call for the investor
2. An “off-plan” purchase in a rising market so there is a period of equity growth before any mortgage starts being payable
3. Discount to open market valuations which gives an instant equity gain
4. Good mortgage rate relevant to the local capital gain forecast
5. Good Capital Gain Forecast
6. Rental guarantee period that covers all outgoings
7. Excellent rental demands
8. Buoyant re-sale market
9. Realistic exist strategy to sell or refinance
10. Ability to extract cash for re-investment at any time