Find out what’s happening in the property investment arena both in the UK and internationally
Take a Risk and Reap the Rewards
June 3, 2008Article by Ray Withers
As Jim Bowen rather insensitively pulled back a screen to show losing Bullseye game show contestants “what they could have won” there are many shrewd property investors sitting on tidy profits whilst those who believed that claims of double digit capital appreciation were too good to be true rue missed opportunities. Sighs of ‘if only’ as they flick through the property press watching emerging markets leap up in price, but it’s not too late, there are high returns yet to be realized if you get the formula right.
International off-plan real estate experts, Dream Homes WorldWide, has been tracking the progress of its carefully selected investment opportunities over the years and it makes for very pleasant reading for its 1,500 existing clients. Take Sunlight Apartments in Bodrum, entry launch price in October 2005 £31,000, today’s sales price £46,600 – capital appreciation 50% or Profile Residences in Dubai Sports City, entry launch price in July 2006 £142,530, today’s sales price £199,550 – capital appreciation 25%. Makes stocks and shares look like small fry.
Ian Fisher, Managing Director for Dream Homes WorldWide assures that there are plenty of boats that have not been missed. “Buying off-plan has twin prospects for high yields, the first is that profit is already built-in as developers discount in the region of 10-15% off market value in recognition of the fact that investors are putting their faith in a intangible product and essentially helping them finance the build, the second is that throughout construction and in the years that follow a growing market will deliver capital appreciation in addition to that 10 or 15%. A rule of thumb is that the greater the risk, the higher the potential financial reward. If you amass considerable insider knowledge and are a confident enough to look at new emerging markets the levels of growth can be potentially huge. Using a company such as ours helps to manage and control that risk as you are able to tap into our specialist knowledge and build property portfolios across different regions and countries.”