Have you ever considered acquiring new investment properties overseas? While owning international property isn’t as easy as owning local property, there are several benefits. For instance, a good exchange rate can make an overseas rental property more profitable, and you’ll have a place to stay when your property is vacant.
So, how do you go about acquiring overseas property? The first thing you want to do is make sure you visit the property in person. Buying property sight unseen is usually a bad idea, and the risks are even greater when that property is overseas.
If you’re in the market for overseas property, here are 5 tips to make your quest easier.
Move overseas temporarily
One way to acquire investments and make sure they pan out is to temporarily move overseas. You’ll need to get a passport and possibly a Visa depending on where you go, but it’s worth the effort.
While you’re overseas, if you have local property, hire a property management company to manage your properties and tenants. They’ll do everything from collecting rent and serving notices, to managing repairs and emergency calls. This way, you won’t be interrupted while you’re overseas and have to scramble to arrange for repairs or manage other situations outside of your control.
Buy a property where you already travel
Some investors buy vacation homes where they love to travel. This makes sense for a few reasons. First, it gives you a place to stay when your property isn’t occupied. Second, you can buy the property for yourself first and see how you feel about renting it out. Finally, you won’t have to take extra trips to scout out potential properties when you buy a home where you already like to vacation.
If you already travel overseas, start looking for property in the areas you frequent or in the surrounding areas. You might find some good deals while you’re already on vacation, and that will save you from having to plan another trip.
Another reason to invest in property where you already travel is that it’s easier to check up on your investments when you go on vacation. Again, this will save you money because you can check in on your properties while you’re on vacation instead of spending additional money on another trip.
Research and talk to other investors
Find other investors online who have purchased a property in your target area and ask them to share their experiences. Ask them what it was like to get a loan for a foreign property, what kind of insurance policies they need, and what it’s like filling vacancies.
Foreign investment properties can be quite profitable, but only when you follow the rules laid out by local laws. Mistakes can be costly, so it pays to do your research well ahead of time and talk to people with overseas investing experience.
Research the neighborhood
Just like you’d want to research neighborhoods locally, you still want to check them out when you’re looking for property overseas. Talk to the locals and find out what goes on in the neighborhood.
Of course, you’ll want to look up the area’s crime rates and other statistics to find out if it’s a worthy investment. However, talking to the locals can give you a deeper insight into how desirable a neighborhood really is.
Sometimes crime rates are low, but a neighborhood is undesirable because of unmaintained sidewalks or because there are no public transportation options. Other times, a safe neighborhood will have schools that don’t perform well, or the buildings just look run-down.
If you don’t know where to find locals, try searching for local groups on Reddit. There are plenty of groups for real estate investors all across the world, plus groups where you can just chat freely with the locals. You’ll get valuable insight if you can find a group related to your desired investment location.
Consult with an attorney
Connecting with an attorney is perhaps the smartest move you can make when acquiring property overseas. No matter how good a deal may seem, don’t sign any contracts before talking with a lawyer. However, you’ll want to hire that attorney overseas in the area where you’re buying property.
Also, make sure that the attorney isn’t aligned with the developer or a real estate agent involved in the transaction. You want an attorney who has your best interests in mind.
Expand your portfolio with overseas property
Is expanding your investment portfolio a priority? Are you interested in overseas property? If so, follow the tips outlined in this article to ensure you don’t miss any important points.