People often say to us, “is now a good time to invest?” and the truth is nobody knows. Many years from now, with the benefit of hindsight, an answer to that question can be provided, but by then it’s all a bit late! This applies equally to investing in shares as it does to property. However in all cases, if you are prepared to take a longer-term view (10 years+), then does it really matter if the value of your investment were to rise or fall over the next 12 months? It is important to consider why you are investing and also to identify if there are good reasons to invest, other than simply a matter of benefiting from capital appreciation. If the global economic situation is uncertain as it is now, then if you part with your money, are you being suitability rewarded for doing so? The benchmark for any investment is how much ‘better off’ or ‘worse off’ am I by investing, rather than simply leaving my money where it is now? Ask yourself the following: Am I getting a good or bad return on my money, where it is currently invested? Even if the answer is a ‘bad return’, that does not mean you should automatically look elsewhere as the grass is not always greener! However you do at least need to ask yourself a few more questions:
Could I get a better return on my money? Can I invest in something at a discount – by doing so I would at least be protected somewhat, if similar investments fell a little further. Is it logical that the alternative could fall in value significantly? What if the unexpected happens – Am I ‘financially able’ to commit the money for longer than I had at first anticipated? Am I getting any kind of reward in the mean time from my investment?These questions can apply equally to any kind of investment, however an investment in overseas property is a perfect example, where your initial thoughts may be – “don’t go near it”, but actually if you work through the idea in a logical and reasoned way, you may at least want to know a little more. Edison Ford has first hand experience of some Apartments and Villas on a development on the Bodrum Peninsula – Aktas' Villa Park. Two of Edison Ford’s staff have apartments on the site and have been involved with the developer as the site reaches its completion. The site is about 5 minutes from the historical harbour of Gumusluk with its ancient ruins, lovely beach and abundance of fish restaurants around the harbour. The properties are now completed and the official habitation certificate from the Turkish authorities has been granted. All major building work is finished. However because of the global slowdown, the number of sales enquiries have dropped and some of the properties remain unsold. Therefore, now could be a great time to consider an investment and the developer is more likely to consider a reduced offer. The worst that can happen is they say, ‘No’. There is no doubt this would be a long-term investment. The days of buying a property and then selling it shortly afterwards for a profit have gone – even if you managed to get a property at a discount. However putting that idea aside, you may want to consider such an investment for the following reasons:
Getting a property below its current market value. Using the property for holidays – thereby significantly reducing the cost of an annual vacation. Easyjet now operate flights direct to Bodrum airport, which is only about a 50-minute drive away. It’s a way of investing in a real, tangible asset that will provide diversification to your investments. Letting the property to others to cover ongoing costs and bring in some income. Phil James of Edison Ford has achieved bookings for 10 weeks for 2009.“We have used the property ourselves over the past couple of years and have had some great times in Turkey. The Bodrum Peninsula is a fantastic destination and ideal place for holidays. The views from the development are spectacular, the beaches great, the location really good and the holiday season can run from April – October. This means there is a potential holiday rental market. We are investing for the longer term and are confident that the value of the property will be higher 10 years from now, than it is today. In the mean time we use it for holidays – 4 of us travelled with Easyjet at Whitsun this year for a total cost of £360. The apartment is furnished and this has meant we have been able to create some income through rental bookings during 2009. Turkey is not exposed to the currency issues of Sterling/Euro and this has helped both the letting potential and the cost of a meal out! Turkey may end up in the European Union at some point and this should have a positive impact on the value, but we are not relying on that. It’s a case of covering costs in the first instance, obtaining some additional income where possible, having a discounted holiday and then seeing what the situation looks like several years from now” Phil said. The ‘official price’ of the 2 bedroom apartments start at about £60,000.
If Turkey doesn't appeal, but your money isn't working as hard for you as it might, then give us a call anyway. We have lots of other ideas we can share with you! If you would like to know more, please call Phil James (01454 322299) or Angela Wynes or Mark Johnson (01225 852789).
