Location, location, location has been the tag line used to sell property all over the world. People say that this is the only important factor. This is obviously over simplifying the whole buying process. There are many other factors that people will take into account when deciding on whether to invest in property. Some are more important than the other in the eyes of the purchaser. Each investor has a unique perspective on property. What is important to one investor might not be important at all to another. In this article we take a look at 4 other factors that are often taken into consideration.
A factor that rates highly in people’s minds is the yield that will come from the investment. It is also about finding the right balance for you between the yield and capital growth. Many potential investors would be willing to sacrifice a strong yield if that meant that there was a bigger chance of experiencing capital growth. There have been very strong yields across Western Europe over the last few years, but finding the right balance it the top priority.
The next factor is timescale. It is important to remember that property is illiquid. Property cannot be easily turned into cash if needs be. They take a long time to convert into cash. We recommend that the property investor always takes a 5 – 7 year view when investing in foreclosed property.
Property is not like cash. Property is illiquid and cannot be converted into cash quickly. This brings us onto our next important factor to consider, which is, the timescale factor. You must consider that it takes time to convert property into cash. We would recommend that a timescale of 5 to 7 years be looked at. This is a realistic timescale.
Lastly you must look at the required capital factor. Do you have the required capital needed to invest? In Florida the foreclosed property market present lots of investment opportunities. Houses under $80,000 are being sold in an all cash market. The fact that Floridians only earn on average $30,000 per year means that the average Floridian cannot accumulate enough savings to purchase. If you are a savvy individual then you will be able to take advantage of this situation, providing you have the required capital.
There are many factors at play at any one time and there is a lot of money at stake. Our advice, as always, is to speak to the experts and take their advice.
At Foreclosedpropertyflorida.co.uk our investment property specialist will help you to source a great foreclosed home deal. We have many foreclosed property listings from which to select from.