Planes, Trains And Automobiles – And Their Importance To Your Property Investment

If you’re serious about overseas property investment, take as read the much-promoted attractions of sun and a relaxed lifestyle. Instead, dig a little deeper. Heat and relaxation are great but there are other features such as accessibility that affect property value and moneymaking potential.

Arrivals and departures

If you’re thinking of letting a property, you’ll need a steady stream of tenants. After all, you want to maintain a regular income. You’ll also want these tenants to return as often as possible. It’s therefore important they can reach their destination easily.

This doesn’t mean that your property must be perched on the perimeter of the local airport. But there must be frequent, reasonably-priced flights to the area – and good onward connections.

It’s easy to check the Internet for times and prices of airlines. And while you’re doing this, confirm that there are flights all year round (if you intend to let your property from January to December). You should also consider

  • who it is you expect to rent your property; and
  • where they are likely to come from.

If the flights originate from just one UK airport, for instance, will enough likely customers travel to it?

Once your tenants touch down on the overseas tarmac, they still need to take themselves and their luggage to your property. Are there trains, buses or taxis? And will these deliver your tenants without fuss and huge expense? Is car hire also available? It’s easy to make assumptions about these matters and discover later that transfers are a major problem.

The obvious way to check these issues is to visit the area. But when you do, make sure you cover all possibilities. If you’re in the company of an agent who collects you at the airport and accompanies your property viewings, you’ll need to find time to conduct your enquiries.

Local transport

Not every tenant wants the expense and trouble of hiring a car. And not everyone will enjoy spending their break in and around your property. Many will want to explore using local transport.

If your property is in or near a town or city, you’ll have no trouble establishing what transport is available. Bus termini, railway stations and the local tourist office usually have timetables and leaflets.

A property in a quieter area, however, may have no transport within reasonable distance. Not even a taxi service. There’s no harm in this if your tenants are content to use a car. And some people enjoy privacy and seclusion. But are you going to get as many of them to use your property? You may have to market these features very convincingly to guarantee your rental income.

Of course, an overseas property with convenient external and internal transport links comes at a price. It will certainly cost more than the equivalent dwelling in a remote location.
But never forget that canny investors can turn remoteness to their advantage. They check if the local government is developing the infrastructure and providing transport links in the future. This is when the arrival of planes, trains and roads for automobiles can boost the value of an investment considerably.