Q: What kind of Investor am I?

Investors know exactly what they want, an entrance and exit strategy for their overseas property. It is important to budget and plan for the unexpected as the overseas property industry involves elements of risk.

Life Style Investment

The question here is what is it for; Capital Growth, Rental, Both or just a Holiday Home?

When buying property overseas for lifestyle think about how much you are going to use the overseas property. Will the rent cover the out goings? Choose a country you frequently holiday or scuba-diving, golf, ski or boarding. Get a good letting agent. The advantage of buying your overseas property would be capital growth and no hotel bills.

Below are typical types of investors, which one best describes you?

A: Conservative

You are not prepared to see any reduction whatsoever to the nominal value of your investments. You are only prepared to put money into investments such as cash or short term fixed interest securities where the capital return is guaranteed. You fully understand and accept that the future purchasing power of the capital is likely to be lower over the long term.

B: Cautious

You are a cautious investor and want a high proportion of the investment to be in cash or other guaranteed investments. Some investments could be in funds where there may be a limited degree of fluctuations of values in return for prospects of modest long-term growth. You would generally prefer to avoid the volatility of stock market investments, but would accept some stock market investment is essential to provide long-term security.

C: Medium

You are a more typical investor who is prepared to see investments fluctuate in return for a high level of prospective growth both in income and capital. A reasonable proportion of your investment should be in largely asset-backed investments such as managed funds. You may be prepared to put a small part of your investments in higher risk funds. You understand that this approach has the potential for growth over the medium to long term and values may fall as well as rise especially in the short term.

D: Realistic

You are a realistic investor and prepared to invest in asset-based investments with very little in managed funds. You are prepared to invest a significant amount outside the UK and may be willing to invest a proportion in higher risk funds. You would like to take advantage of equity investment with the prospect of good long-term returns and can accept the increased short-term volatility.

E: Adventurous

You are prepared to invest in asset-based investments with little or no managed funds exposure. You are comfortable with investments in high-risk funds or individual shares or property. Most of your capital or contributions are placed in investments that aim to maximise long-term growth. You are willing to accept potential loss of capital to gain potentially high returns.