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As a serious investor you can expect above average returns
from investing in the Off-PLan Thai property developments bieng identified
by these four reasons:
-
Your property is priced significantly by todays market
value (You literally buy your property at a discounted price).
-
Your equity is limited to only around 30% of your
property's price. (You only pay a fraction of the cost to secure your
owership rights).
-
During construstion you can sell your property to a
'lifestyle' buyer benifiting from any pre-scheduled price increases from
the developer and additional market growth.
-
Elect to go to Title Deed and complete your purchase; then
sell the property on approximatly one year later and see potentialy even
bigger gains on your investment due to the developments 'mature' status
and desirability (its easier to sell a comlpleted apartment with a
beautiful swimming pool and gardens than something still in construction). For example,
- An off - plan property is availible for €250,000.
Equivalent properties in the same area are selling today for around
€350,000(40% more).
- Your required equity (30% of €250,000) is €75,000.
- The remaining 70% is payable by a morgage or in cash only upon delivery of
the property.
- If you choose to sell your property during construction at an increased
price of around €325,000 you make a gross profit of approximity €75,000
(the differnce between your discounted purchace price and your final
selling price), and a selling commision of 5% of the new selling price, we
arrive at a figure of €51,250.
- As you can clearly see, your profit of €51,250 on your original equity of
€75,000 is nearly a 70% return on your equity within less than two years.
This example does not include any taxes payable on your profits. However,
our relationships with several competent and efficient legal firms mean we
can provide the best vehicle to minimize our client's tax liabilities.
To increases in the price of your property are a feature of the investment
itself. Exactly why and how this happens is explained in detail in the
following pages.
The example above showes what happens if you sell after the full 35%
increase. However, many investors are happy to settle for returns of less
than 70% by selling whn the price of their property has risen by 10%, 15%
or 20%.
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