Google
ROI Srategy

Your Return On Investment (ROI) will vary according to your overall strategy and risk tolerance. There are various ways to manage your investment Euros or Sterling. Our best advice is to consider an investment approach that is consistent with your current investment strategies and goals. This may look different for each individual.

Buy

Buying is historically the best strategy. Yes, this sounds pretty basic but if you think about it, many people sit on the sidelines waiting while the market doesn't. If you hesitate, particularly in todays market, then you might be giving up a portion of a future equity position. No one can time the market either. Successful real estate investors say you make your money on the purchase, not on the sell. If you continue to wait to purchase then when will you have something you can sell?

Many people get all caught up in the idea that they have to be the first to buy in a pre-construction off plan property. These days that's easier said than done much of the time. If the market is moving and a buyer is waiting for the next offering then they might be missing out on appreciation had they purchased in another development. There are many excellent opportunities that may be purchased at Promissory Contract.

Exit Strategy

There is no answer better than another when it comes to exit strategies. Everyone has their own financial situation and goals. Some buy and sell frequently and some like to hold on to their investment maybe putting it to the rental market. Others will hold then sell after a year to minimize capital gains expenses. Some will hold for a long time to see cashflow and build a residual revenue stream.

Short or Long term?

As with any real estate purchase there are short term and long term opportunities to sell a property and profit. To make the “right” decision you’ll have to answer your own questions about risk, cash-flow, capital gains and personal ease of mind.

Short Term
Selling a property in the short term can provide a quick return but may be short sighted and you could miss out on further appreciation. You’ll then have to consider what to do with your returns ... invest it else where or let it sit in the bank. There are various tax implications as well with Capital Gains Tax. You will want to consult a tax professional.

Long Term
Holding a property for the long term can provide positive cash-flow and build equity in property which can become an annuity over time. When you hold your property long term then you understand the ups and downs of any investment and are prepared to ride any changes in the market. Historically an up and down market still maintains an upward path over the long term.

 

 
algarve-offplan.com © 2007 All Rights Reserved