Before making a property investment there are a few things you need to consider, first and foremost is the investment right for you? Take a look at your current portfolio are the investments you already have working for you? Are you following a certain trend? Do your property investments follow a similar pattern? Is the market stable at the moment?
Generally you will almost always find the property market is safe and stable especially compared to stocks and shares where one can face uncertainties. Possibly you are looking for long term capital growth or income generation or maybe a combination of both of them.
Have you considered making an investment in overseas real estate? You should think about this carefully as it not only expands your property portfolio it can provide you with a solid income. It is a lucrative investment and is a welcome change from the usual investments which could be mainly stocks and shares it’s also a good idea to spread the risk over different markets and across the globe.
Whilst you may feel more at ease investing in your own country its worth taking a peek into offshore markets as the benefits will more than likely outweigh any doubts.
Look at the overall picture include regulations or tax benefits and exchange rates as these can often be in favour to the overseas investor. How do you choose an offshore investment? Most investors follow the general rule of thumb, they research extensively and undertake due diligence before they make any decisions. Look at the key words population, infrastructure and economy.
- It stands to reason that as a locations population expands so does the demand for homes which means the property prices increase.
- Absolutely paramount is infrastructure and connectivity, any governments approach to regeneration and upgrades /improvements to transport infrastructure usually is in keeping with an increasing population.
- A thriving economy which is stable within a variety of industries offers growing levels of employment which encourages flourishing investment opportunities.
There are 10 key points to take into consideration when investing overseas:
- What are the income, capital gains and inheritance tax implications to foreign investors?
- How to access the profits?
- Are there any legal implications to foreign investors?
- Use the services of a trusted mortgage advisor should you apply for a mortgage.
- Consider the currency fluctuations and exchange rates.
- Undertake due diligence on the developer, letting agents and property management companies. Understand the local rental market.
- If you opt for a buy-to-let property it can enable investors to repay their mortgage via the proceeds of the rental income. You can buy multiple properties in different locations which spreads the risk.
- You need to keep track of your investments and re-evaluate.
- Plan ahead especially if you have a time frame for reselling.
- A 5 -10 year minimum hold on an investment property is recommended.
The US Dollar is strong; the time to buy overseas property is now!