Fly-to-let investments have seen a rise in popularity in recent years,
parallel with the explosion in the buy-to-let market.
Both follow similar principals: Purchase a property with the view that either
the returns will provide a steady income, or that the returns would minimise
losses whilst the capital appreciation of the property grew. Some examples
saw the opportunity for both of these outcomes to be taken advantage of,
simultaneously. These examples rely on a rapidly expanding market,
thus offering excellent medium and long term returns.
Therefore, the most successful fly-to-let investments take advantage of
increases in global tourism. Increased numbers of tourists increase
demand for property, increasing prices. These increased numbers also
form the bedrock for a steady income supply.
What is looking at making fly-to-let investments even more of an
attraction in the near future is the continued uncertainty regarding
the buy-to-let market. Uncertainty over domestic house price growth,
as well as returns, means investors are looking elsewhere to find the
returns that they demand.
It is this uncertainty in the buy-to-let market that leads investors
more and more to the fly-to-let investments that offer certainty of return.
The developments of Emerging Earth, for example, offer 7% for 10 years,
or 8% for 5 years. With the ever shrinking globe, even tropical paradises
such as those found in the Caribbean are more and more accessible.
This provides the ideal circumstances for a successful fly-to-let investment:
Certainty of return, backing by an ever-increasing demand.