We’ve all tapped out finger on our chin and wondered what it would be like to invest in property abroad, and it is easy to see why. Not only do you have a globe of idyllic locations to choose from, as well as a wealthy choice of apartments or villas, you can invest in a property for a lot less you can if you live in the UK or parts of the US, for instance. What’s not attractive about that? You can watch the value of your property rise while covering the costs by letting it out, maybe you’ll even earn an income off it. And if that isn’t enough, you’ll also have a free place to holiday.
However, while the pros of snatching up a good purchase are fantastic (returns of 15% or more kind of fantastic), the cons of getting your purchase wrong can leave you in dire straits, the kind that could see you stuck with a loss-making property in an area that nobody wants to visit never mind invest in.
Luckily for you, there are plenty of locations where you can successfully invest your money, all you have to do is follow our diamond rules of investing overseas.
The First Diamond: Know Your Endgame
Before setting off on this journey, it is imperative you know what it is you want from an investment. It could be you are seeking to improve your net worth, or you may want capital gains, or it could be you are simply after a second home in a gorgeous location. Whatever your endgame is, do your research. For example, if you want to earn money long-term, your best bet is to buy somewhere with minimal outgoings. This means researching the areas you are interested in and looking at the renting market in those areas as well as the cost of upkeep.
The Second Diamond: Prepare For Disaster
What we’re talking about here is having a Plan B – a contingency plan – just in case something, or everything goes wrong. This is important because things can and do go wrong. Property prices don’t simply go up, they can drop as well. Interest rates are also known to rise, while rental yields often fail to reach their full potential. What’s more, it can be easier to deal with other factors, such as tenancy issues, from overseas. All of this should be accounted for.
The Third Diamond: Know The Rules
Different countries have different legislation in place. For example, if you’re in the UK, buying a house in Europe will have its issues but, overall, it will be a pretty smooth ride. If you want to buy a house in the USA, though, there are things you are going to need, things you may not have heard of, such as an EB-5 green card investment lawyer for instance. As such, it is always wise to know exactly what hurdles are in place in each of the destinations you are interested in.
