Property Magic

WHAT MAKES A GREAT PROPERTY INVESTMENT DEAL?

When we source property deals for investors, we have several criteria in mind which establish good foundations for a great deal:

1. Equity from day 1 - if we can source properties at prices BELOW what they’re worth (using a variety of pricing tools and sources), then investors have INSTANT equity in their deal.
For example if a property is worth €400k but we can get the owner to agree to sell for €350k (which they may do for a variety of good reasons), we’ve just made you €50,000. You could re-list and sell the property tomorrow without having done a thing to it, and gain an extra €50,000. That ALONE is worth our sourcing fee, many times over!

2. High rental demand - investing for a long term increase in value (capital gain) is one thing, but the right property should not only cover its own expenses (taxes, bills, mortgage, etc) but also put extra money in your pocket each and every month while you own it, too - this is why we only look to invest in properties in areas of high rental demand. Savvy investors look for ASSETS, not liabilities which slowly drain your resources.

3. Cashflow is KING - as mentioned above, a property should PAY you each month, not COST you money to own. Investing ONLY for capital gain *isn’t* really investing, its speculating. We’re investors. We look to make a return on our outlay from the very beginning. Capital appreciation (where a property you own sells for more than you paid for it) is a welcome bonus, but it shouldn’t be your only goal. All property deals we sell will generate POSITIVE cashflow, ie the numbers have been crunched for you, and the result is ALWAYS positive cashflow! If the numbers don’t add up, we don’t recommend or sell the deal.

4. Ability to add value - buying a brand-new shiny house or apartment can be very appealing, but it *severely* restricts your ability to increase the value of the property. However buying a dated, run down or unloved property for a great price and then adding value by improving the appearance and function (eg adding an extra attic bedroom) nearly always pays off. A €30k investment in a property uplift can often pay back double or even TRIPLE your cost. We buy properties with a FORMULA, not with emotions. The smart investor doesn’t look at buying homes, they look to buy a PROJECT. With the right teams in place to transform the property from delapidated to desirable, there are HUGE financial gains to be made - plus you’re also lifting the image (aka value) of the area as a whole, not just your own property!

5. Low investment cost - if you can get into a deal with a low investment cost (eg a high mortgage percentage, or another creative strategy such as a rent-to-buy), it impacts your wallet less but gives you the same opportunities to make money via monthly cashflow and eventual capital appreciation. We NEVER advise buying for cash, even if you have millions in the bank. Sit down for a one-to-one discussion with us to find out why!

6. High ROI - your return on investment is crucial as a potential property investor - you’re in this for profit, after all. ROI is calculated as:

Annual profit
———————- x 100
Investment cost

This can be a complicated topic all on its own, but rest assured that when we look for property deals for investors, we look for a good ROI as part of our wider search criteria.

If you would like to speak to us about anything mentioned above, or have us help you find a great investment deal, just get in touch!

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Property Magic – creative property solutions!

* Valid tourist license and contents insurance required. Apartments should be furnished, and no higher than the second floor without an elevator. We reserve the right to decline individual collaborations and/or properties. All partnership offers are subject to a free, no obligation viewing.

Happy nearly Christmas!