Being able to invest in your own property in the first place is an incredible achievement, but it’s one that comes with a double edged blade. The property market is changing all the time, and being able to keep up with these changes just isn’t possible when you’ve sunk your life’s savings into a house you can’t afford to renovate and no one wants to buy off you – it just doesn’t have the style and features that have value anymore!
Your property money doesn’t always have to go to waste though, and there’s always going to be at least one market out there. And usually, if you invest into property that exists in a foreign market, you’ve got a big buck to make. So with that in mind, here’s some considerations you’re going to need to take into account when deciding if international property is the right decision for you.
Are you prepared to cope with big city or small town life, in a country you know next to nothing about? To buy property there, you’ll have to!
Where Will You Buy?
First thing’s first: if you’re looking to become an overseas real estate investor, you’re going to need to settle on a country that has the right property for you. And that’s going to take some time, in order to make sure you’re properly weighing up all of your available information. It’s definitely not a decision you can make on the fly!
Depending on your current location in the world, especially if you’re living in a Western country, heading South or East is usually the best decision. And if you’ve never invested in this kind of property before, or you don’t have any ties to the countries you’ve already heard are great money makers, you’re going to want to find out what the rental taxes are, if there’s a good tenant interest, and whether or not you’re going to be able to make a profit from these two considerations.
Countries such as Spain could count as one of these contested points you’ll need to look into: it has some high tax rates, but there’s a lot of tourists and expats flooding into the country year by year, and they’re a great target market to focus on. Another would be Malaysia, with rental taxes possibly peaking at about 28%. But it’s a great link to the rest of Asia, and there’s even online boards for the smaller towns within this area, such as a setia alam property review – that means you’ve got plenty of researching power on your side.
But if you want to play it a little more safe, then there’s plenty of countries out there. First of all, somewhere such as Cyprus would be good for your rental rates, which have managed to keep a steady pace over the years. Ireland would also be another great place to try, with rent prices climbing up, and more and more people looking to emigrate there in the current economy.
Are You Willing to Cope with the Laws?
The next thing to realise, before you buy property abroad, is that the laws in that country are going to be different to the laws in your own. And with the UK mostly leaving the EU, there’s going to be a dip in regulation and investor confidence as you try to move your property interests abroad. But that doesn’t mean it isn’t worth a try.
You’ve got new mortgage rates and rules to look out for, you’ve got various agents and institutions to be wary of, and you’ve got language barriers to find your way around. And that’s just the preliminary worries to keep in mind! The best idea would be to hire someone to act on your behalf with any and all overseas property troubles, to make sure you’re never getting duped out of a good deal or being sucked in by a contract any native person would spot a mile off.
All in all, you’re going to need a handy budget on your side to cope here, and that’s just another expense to try and afford!
Could You Turn it into a Holiday Home?
If you’re someone who likes to take a holiday, whether it’s because you’re a hard working person or you’ve got kids to keep entertained each year, investing in foreign property might just be the perfect move to keep up with this lifestyle. You’ve got your own place to stay in, with no room or insurance costs that a hotel will usually throw at you, and you can stay for as long as you like whilst you’re there.
But once again, if you’re looking to turn your foreign property into a holiday home, you’re going to want to make sure you’ve got the prime location in mind first. So make sure you’re following the expat’s lead – the general consensus seems to change every year. If you capitalise on this market, you might even be able to find a place that has a discount on it…
And then you’ve got the added bonus of being able to rent out your place to fellow holidaying travellers whilst you’re at home! Even if you’re not into making money off of real estate in the long haul, this is a good consideration to look into, seeing as you’ll want to make a return investment off of the life’s savings you put into the place to begin with!
So, is Buying Property Abroad the Right Choice?
The idea changes based on who you are and where you come from, so make sure you’re always doing your own research. But based on these above points, deciding whether or not investing in property abroad is a good decision for you should be quite easy.
You can do all kinds of things with a second home, whether you’re planning to rent it or not, and having this option on your plate in the modern day and age is a luxury. Simply, make use of it!