Entry Level Or High End Investment Property?
To clarify, an entry level investment property within an Overseas resort may be defined as a hotel room, where a high-end investment property could be a 3 - 4 bed villa at a considerably higher purchase price.
When a property investor decides at which level of the market they wish to invest, the decision is usually determined by one major factor - budget.
Property investors with limited investment funds may invest at entry level out of necessity, whereas an investor with a much larger budget may have a wider choice of property type which they could purchase.
However, when you see property investors with large budgets purchasing multiple entry level investment properties rather than one high-end investment property, the question is raised; is high-end property investment a good choice?.
No one answer fits all - this choice depends on the individual requirements and investment aims of the property investor.
For example, a property investor with a large investment budget may decide to purchase a 4 bed investment villa because they will also benefit from an element of personal use and wishes to use their high-end property.
A property investor with a similar budget may decide not to purchase a high-end investment property, but purchase 2, 3 or even 4 entry level investment properties instead.
Why would a property investor decide to do this? Perhaps their investment aim is to sell one or two properties in the short to mid-term for capital profit and retain the remaining properties for long-term rental profit.
Purchasing multiple investment properties certainly does offer greater flexibility compared to purchasing just one and allows a number of effective investment strategies to be used to raise both capital profit and rental profit.
If you have a large investment budget and are deciding how best to invest, great consideration should be given to factors such as flexibility and personal use to ensure that your investment strategy is reflected in your choice of investment property purchase.