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Investment - The "pure Investment " Strategy
The pure investor is an un-emotional investment property buyer
who is purely seeking maximum short term return on capital within
the safest investment market in history. Their investment vehicle
is the purchase price but the investment involvement is only 10 - 30%
of the purchase price.
During the development period the developer
is likely to increase the development units sale price several
times typically from 8-10% three to four times in phases. These
price increases inversely mirror the developers risk, as the development
matures the developer's exposure diminishes and so they can charge
more for their product with each passing stage. Also for the buyer
they can see physical progress, get a feel for the property and
rely less and less on architect drawings and graphical impressions
when making the decision to purchase the property - but pay extra
for this luxury (see "" for
more information).
To the "Pure" Investor this creates an excellent investment
opportunity. When buying into the development at the earliest stage
possible the Investor can benefit from each of the phased price
increases showing a profit gain of 30% - 40% (assuming 3-4 phase
price increases each of 8% - 10%).
The pure Investor then seeks to re-sell his investment bought early at the best possible price just prior to completion to a secondary buyer who typically wants to live in or rent the property.
Case Study (Example Only)
John decides to purchase an Investment Property
and after joining the IPIN and discussing his requirements with our
investment experts he decides that it is purely a wealth building
exercise and that the "Pure" Investment strategy is for
him.
John decides in conjunction with our advisors taking into account
his personal criteria to purchase a unit on the development "X" at €630,000.
John pays 30% deposit (including his initial reservation fee) which
totals €189,000 and signs a re-assignable contract allowing
him to sell prior to the completion of the development units.
The project matures and after several phased stages John with the help of the IPIN negotiates the sale of his purchased unit for €925,000 to a secondary home buyer.
To John the "Pure" investor this represents a huge profit gained on invested capital of 156% (IVA and agents fees have not been included in this example calculation) as he has only ever invested the initial 30% deposit into the property.
This investment model relies on careful selection of property and entry into the investment at a very early stage to maximize profit during the price appreciation of the property as the development progresses. For more information and current opportunities now for FREE and speak to a specialist.
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