Comments on: Property Abroad: Time Important but Don’t Panic http://propertyabroad.wordpress.com/2008/06/26/property-abroad-time-important-but-dont-panic/                 Fri, 13 Feb 2009 11:58:38 +0000 http://wordpress.com/ hourly 1 By: Andy http://propertyabroad.wordpress.com/2008/06/26/property-abroad-time-important-but-dont-panic/#comment-39 Andy Tue, 29 Jul 2008 09:12:48 +0000 http://propertyabroad.wordpress.com/?p=21#comment-39 Buying off-plan is certainly a great way to make good profit on a real estate investment, but it shouldn't be forgotten that the fundamental rules of smart buying still apply. Location is the one thing you can't change so make sure it has some intrinsic market value of it own. There have been plenty of off-plan properties in Bucharest, for example, that were snapped up by hapless investors 3 years ago, who are now struggling to even realise the original advertised price, as they don't happen to be in the "fashionable" part of town. And now, even that part of town is seeing drops in price as it has simply become too sauturated by foreign investors buying off-plan, meaning an influx of several hundred apartments hitting the market on completion at around the same time! The rule of economy's supply and demand means that these apartments don't get to realise their potential; following the crowd is not always a good move. My advice, go off-plan by all means, but take the time to check the location (by local standards not the sales pitch of the agent) also if it looks like all the buying is being done by investors from abroad, chances are they will become your competition on completion, so be wary. Look for where things are happening within the country; infrastructure, investment, international companies moving in etc, and try to get in at the beginning if you can! Good luck Andy Buying off-plan is certainly a great way to make good profit on a real estate investment, but it shouldn’t be forgotten that the fundamental rules of smart buying still apply. Location is the one thing you can’t change so make sure it has some intrinsic market value of it own.

There have been plenty of off-plan properties in Bucharest, for example, that were snapped up by hapless investors 3 years ago, who are now struggling to even realise the original advertised price, as they don’t happen to be in the “fashionable” part of town.

And now, even that part of town is seeing drops in price as it has simply become too sauturated by foreign investors buying off-plan, meaning an influx of several hundred apartments hitting the market on completion at around the same time! The rule of economy’s supply and demand means that these apartments don’t get to realise their potential; following the crowd is not always a good move.

My advice, go off-plan by all means, but take the time to check the location (by local standards not the sales pitch of the agent) also if it looks like all the buying is being done by investors from abroad, chances are they will become your competition on completion, so be wary.

Look for where things are happening within the country; infrastructure, investment, international companies moving in etc, and try to get in at the beginning if you can!

Good luck

Andy

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