
Property Investing Advice
H&A's Property Investment Criteria
A Belt and Braces Approach to Property Investing
- Mitigating the Risks
- What We Do Before We Offer You A Development
- Macro and Micro Political-Economic Picture
- National and Local Marketplace
- Development Specific Information
Buying property is one of the biggest purchases most of us will
ever make. In fact, I can think of few other items that would
be more costly if there is a complication. And there’s nothing
worse than your money being tied up in an investment going nowhere,
or even worse, stranded in a development that has completely fallen
through.
Therefore, at H&A we apply the following investing criteria
to every property we propose to you - and we don’t charge
you for the pleasure! There is no sign-up fee for an expensive
‘learn before you buy’ property course, just excellent
deals described in plain English that we have worked hard to find
- and not to mention enjoyed finding too.
Mitigating the Risks
We believe the best way to mitigate the risks attached to purchasing
property is by assessing an investment in three key ways:
1. By researching the macro and micro political and economic
picture of the country, and by examining the respective local
marketplace to gauge what level of sustainability a market offers
and what the exit strategy would be.
2. By thoroughly vetting the development team, including the
lawyers, architects, property managers and rental agents, and
appointing independent advisors to check up on the developer’s
team.
3. By comparing developments and working out which ones would
be most likely to sell and/ or rent over and above another property
in a downturn.
Needless to say it’s also important to throw in a healthy
dose of good old instinct when it comes to buying property once
the basics are covered.
What We Do Before We Offer You A Development
• We visit every development we promote
• We meet the developers and as many of their team as possible
• We inspect any previous developments they have produced
• We check the surrounding area and assess the local infrastructure
• We meet their lawyers and bank manager
• We request site plans and expect copies of title deeds,
planning permits and licenses
• We view comparables in the area
• We visit local attractions and gauge an area’s ‘pull
factor’
Below are just a few of the aspects H&A research and take
into consideration, but the list is by no means exhaustive
Development Specific Information
• Land ownership deeds
• Bank guarantees and encumbrances
• Planning permits
• Team track record
• Architect’s and surveyor’s qualifications
• Architects’ designs
• Demand for type in marketplace
• Scale of development
• Availability of finance
• Location
• Time to completion
• No. of employees
• Customer care
• Competitive advantages
• Local infrastructural changes
• Quality of build
• Quality of fixtures and fittings
• Rental yield potential
• On-site amenities and utilities
• Competitive pricing
• On-site property management
• Maintenance prospects
• Accessibility
|
National and Local Marketplace
• Country infrastructure
• Flying time/cheap flights
• Border relations
• Local and inward investments
• Local commitment to developments
• Local tourism/ lifestyle
• Weather and seasonal trends
• Buy/ sale market
• Recent growth trends
• Residential market
• Land market
• Commercial market
• Industrial market
• Natural resources consumption
• Culture, tradition, religion
• Local people’s value system and beliefs
• Local and regional infrastructure
• Planning process + bureaucracy
• Local Govt + State support
• Security (financial, criminal, country transparency
index)
• Banking infrastructure
• Rate of growth/ demand
• Cost to build
• Material and skills availability
|
Macro and Micro Political-Economic Picture
• Political Climate
• Macro economics
• FDI Level
• GDP
• Unemployment
• EU accession
• Legal structure
• Property ownership laws
• Natural resources
• Population
• Immediate history
• Projected 5 year outlook
• Independent reports/press |