There are several reasons while it is more profitable for you to invest directly in property than in investment funds when you investing in Eastern European countries. When you invest in a fund you will of course have more safety and reliability in your investment. Another advantage to fund investments is that you won’t have to manage your property or hire someone to manage your property for you. This can be a benefit if you are uncertain of how property investment works and are reluctant to take a risk.
When you invest directly in property you will get the following advantages and benefits:
• Higher profits
• More control over your investment
• No fees that are linked to investment funds
• Tax efficiency
Types of Property to Purchase for Investment
There are many different types of property that you can choose as your investment. The things that you should be clear about when you’re investing in property are:
• Are you looking for capital growth?
• Are you looking for income that you receive from rental property?
• Do you want to strive for both capital growth and rental income by leveraging your assets?
Once you are clear about what type of return you want to get for your investment you are ready to start looking for the type of investment property that is best going to meet your goals.
If you are looking for capital growth from your investment property you’ll be able to choose from properties that are still in a state of fluctuation. These types of properties can have an uncertain outcome and therefore most investors are waiting to see in which direction the market is going to go. If you willing to take a small risk and jump on the bandwagon, you can invest in these as yet undetermined properties and take advantage of a investment opportunity that is just beginning to establish itself.
Rental property investment
When you invest in a rental property you will be assuring yourself of a steady income for a certain period of time. When you are looking for rental property to purchase as an investment it is important to keep in mind that you look for property that is an area of high exposure.
You don’t want to purchase rental property in the suburbs only to find that most people are looking for rentals closer to the center of town.
Property investment tips
There are several other things to keep in mind when you are purchasing rental property in Eastern Europe as an investment. These things include:
• Look for long term investments if you are looking for more than rental income.
• Research what types of rental properties are in high demand in the city or town of the country that you are considering.
• Buy a new home or apartment and plan to hold on to it for a few years before selling.
• Buy older property and renovate.
• Hold on to this renovated property for a few years to see a return in your investment before selling and purchasing additional investment property.
• Make a quick profit with little capital growth by buying older property and reselling immediately.
When you are ready to purchase your investment property in Eastern Europe you will want to contact a real estate agency or investment company for up to date information.