Investments. Invest in Golf Properties in Golf Courses

Investments in Golf Properties

If you are wondering where you should invest, you need to know what type of investor you really are. Then you can match your profile against the myriad of opportunities and create a clear way forward.

This is an enormous subject to cover in a few words, and even whole books can’t cover every aspect in detail. Even so, by the end of this article I promise that you will be able to make a clear decision on the right way forward. In fact, you will only have to decide between two distinct choices.

On average people in the UK wait until they are 45 to take control of their finances. If you are under 45, now’s your chance. If you are over, better late than never! But where do you start?

Well, step 1! Decide how much of your cash and/or equity you want to invest in property (asset allocation, if you want to sound good down the pub!). I would be breaking the law if I tried to do this for you, you need to talk to someone qualified (an IFA) or have a go yourself. If you talk to an IFA, just bear in mind they might be reluctant to include property in the discussion, as it may not be an asset class they might be familiar with, or will earn them any fees.

Once you have an idea of the amount of cash or equity you have to spend, there are some key questions you need to ask yourself (and answer!) for step 2:

Attitude to risk. Are you ‘I really want to go all out buying as much as possible anywhere’, or more ‘I just want a good solid investment that will be a nice bonus come retirement’?
Attitude to borrowing. Do you hate the thought, or cherish using someone else’s money to make you wealthier?
Do I want somewhere for pleasure as well as an investment?
Which is more important, capital growth or rental return?
Do I need the property(s) to pay for themselves, or can I afford to support them?
How near or far am I comfortable owning a property (flight time)
Which countries, if any, do I have an interest in or knowledge of?
What do I really want to achieve, and in what time scale.

As well as the above, you should also consider how important rental guarantees are, if you want to try and get a discount and are you happy buying ‘off-plan’?

So, once you have created your own profile, it is worth summarising your objectives and strategy in one or two sentences, creating your own Personal Plan, for example – ‘Using £X,000 I want a portfolio of five off-plan properties in high risk, high growth areas where the rental return will cover mortgage payments and at least one of the properties I can use for holidays’

Now comes the fun bit! Research, followed by more research! Step 3 is to research the range of countries where you could invest. The key task is to continuously match the facts about the countries against your own profile. There is a range of information you should be researching (see website below for further information), but essentially you are looking for a country that allows you to fulfil your summary statement. This boils down to 4 areas:

What are the fundamentals that are going to drive capital growth?
What is the level of risk associated with any given country, and is it over or under-valued?
Does the finance available, property prices, buying costs and rental yields make it financially viable?
How strong is the resale and rental market

Once you have a country in mind, step 4 is to hone down to specific regions or locations, and then find out what sort of opportunities are available to you. If you are struggling, then either that country is not right for you, or your personal objectives are not realistic and need revising.

If your strategy is to stretch your limited cash as far as possible, then your decision on which country will be largely driven by the need to find more innovative finance deals. For example, your search could uncover an opportunity in Southern Cyprus with 90% mortgage and the 10% deposit payable over 2 years, or in Sofia (Bulgaria) where there is 100% finance available and guaranteed tenants for houses in the suburbs. If your strategy concentrates more on rental return, then you might uncover a 10 year guaranteed rental return in Thailand, with a minimum 10% nett return, or 15%+ returns in the United States.

You do also need to be honest about your intended commitment of time and inclination. If you relish the idea of the above, and have the time, then that is the best way forward. You should also bear your time commitment in mind when choosing the type of property to purchase.

We can also learn from some of the greatest investors in the money markets. Mark Tier has found 23 common strategies that can be distilled into 7 winning investment habits:

if you don’t feel certain about what you’re intending to do, don’t do it.
Never -ever- take big risks
Only ever buy bargains
Do your own legwork
When there’s nothing to do, do nothing
If you don’t know when you’re going to sell, don’t buy
Benchmark yourself

So, what are your two distinct choices going forward (as promised)? Simply put, either you commit to following the path outlined in this article, or you find someone who can do it for you. That is the most important decision for you to make now.

The mistake many people make is to tread the middle ground, where they have enough information to get themselves confused, but not enough to make an informed