BUSINESS The life of a ... Educating Joe Public A decade of bringing e-news to a changing audience IAIN MAITLAND: And today’s lesson is... due diligence
10 years, trying to identify safe markets and upcoming trends for our members. Along the way we’ve sourced decent opportunities for them that will pay us commissions to keep our nine free e-news services bubbling along. Overseeing property e-news services – from London to Lifestyle, which takes us out as far as New Zealand and Australia – we have a good idea of what’s happening across a wide range of markets. Back in 2007, when everyone seemed to want to buy overseas property, Spain was our hottest market. We were getting hundreds of replies for every introduction we made. Roll on to 2013, and we get a handful of replies – and we are talking decent deals, not the ‘half price’ identikit units on half-built, concrete jungles.
W
TIMES ARE CHANGING Spain, Dubai, Eastern European city centres... most years have seen buyers fl ock from one ‘hotspot’ to another. The pattern repeats itself: developers and buyers rush in, lots of ‘luxury’ two-bed apartments are built and sold, often out of the price range of local buyers. The market stumbles, everyone moves on, leaving unsold, hard-to-rent units.
78
e’ve spent the past month, as we’ve done every month for the past
At Property Alerts we try to educate would-be buyers, especially Joe Public investors: visit what you intend to buy. Walk and talk. Do your due diligence – your own, not just reading the PDF the agent gives you. Use your own lawyer. We get new members who tell us about deals that have gone wrong. “Did you do your due diligence?” “Did I what?” “Did you use your own lawyer?” “No, the agent said use the developer’s.” Most of them say they did not fully understand the
Halve the price, 100% mortage, we still can’t sell it
deal or some aspect of it and ‘took a chance’. We always tell members, if you have any doubts walk away, there are other deals on other days.
BUYERS ARE CHANGING TOO The past year or so has seen a shift in the type of investments that members want. Villas in Spain, apartments in Dubai, second homes in South-West France – halve them in price with 100 per cent mortgages and we still couldn’t sell them. Armchair investments though, they’re another matter.
International Property Alerts Tel: +44 7956 106 007
Brazil social housing, UK student accommodation, US regeneration projects – anything where you put money in, sit back (after doing your due diligence please) and take your profi ts later – are all in demand. These are our hot investments now. We’re also seeing more serious investors – including those from Russia and America – who are buying multiple units. That’s good for us because they understand the rules of the game.
WHAT’S HAPPENING NOW Demand still ticks over for bricks and mortar. London appeals although the higher prices are off putting. We are currently looking at projects along the Crossrail route. America, particularly Florida, has some appeal although some members struggle to see beyond the Disney locations.
We think the move away from largely ill-educated to specifi c, well-informed purchasers will continue, with growing demand for armchair investments in known and expanding markets.
These may become more popular with members of the public in due course. Having to pay IFAs hard cash for advice upfront rather than by commission may drive them down DIY investing routes. Lots of education – which is what we try to provide – is the key to success.
www.opp-connect.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80