Investing In Property

From Spain to Thailand, British buyers are investing in property in exotic locales with hopes of high capital appreciation coupled with a steady income from rentals. The twist in this tale is investing in property on a shared basis. It has all the fun of owning many luxurious holiday homes. Moreover the diversification provides a buffer against unexpected drops in any particular market.

The AIPP’s International Property Market Report 2007 states that Spain was the number one destination for British buyers investing in property abroad in 2007. The report further states that investing in property overseas was up by 21%. Today owning a holiday home as an investment is very much in vogue. However, often the lack of funds limits buyers to investing in one property and the lack of diversification increases the risk. For example, the Financial Times reported that prices of Bulgarian properties dropped by 10% leaving many investing in property there in a quandary.

The key advantage of investing in property in a shared ownership scheme is that buyers jointly invest in property in up to 6 different markets. Unlike investing in property under timeshare, you have your name on the title. Those investing in shared property can also enjoy annual holidays at homes in a variety of places and after the stipulated period, the properties are sold and the spoils divided.

The disadvantages of shared ownership one may argue is that investing in property with up to 40 other investors reduces the flexibility in ownership. Further, investing in one property, where mortgage is set against rentals, can bring higher returns. However, investing in property in a shared scheme gives more security and is hassle-free. Most of all, unlike other financial schemes investing in shared property is a fun way to earn money. You could after all, own patch of snow in Colorado and a bit of sun in Phuket.