Real estate trading is one of the world’s oldest forms of investment. If you’re sensible and strategic about the investments that you make, then it can be very lucrative. One of the best ways to make money from real estate trading is through international investments because you can often find cheaper properties abroad than you can domestically. Once you’ve bought property abroad, you can hold it and wait for its value to go up, or you can rent it out as a bed and breakfast.
In this article, you will find an easy guide to investing in international real estate:
Find an Affordable Country
When you’re shopping around for your first international property, you need to find the perfect country. There are lots of things to take into consideration, such as a country’s crime rate, property values, and desirability. Central American countries are very hot with investors at the minute, particularly Costa Rica. If you decide to invest in Costa Rica real estate, for example, then you need to make sure that you invest in an area that’s already popular or is experiencing regeneration. You don’t want to buy something that’s in an area nobody wants to go to.
Hire Local Professionals
When you’re shopping abroad, you need to make sure that you hire local professionals to help you. This is so you can navigate the country’s legal requirements and restrictions and find properties that are worthwhile purchasing. Only locals can help you with these things. You should hire an attorney and a buyer’s agent. They can then act on behalf of you if you have to return home and can’t be there to make offers on properties or attend viewings. They may also be able to help you to get discounts on properties.
Square-foot measurements abroad typically include outdoor and indoor space, including patios and balconies. It’s important that you do your research and find out exactly what is included in square-foot measurements when you’re shopping abroad. You don’t want to make a purchase erroneously believing that you’re getting a larger property than you actually are, because this will end up being very disappointing and could be a massive waste of money. Your local buyer’s agent should be able to answer this for you. If they’re acting on behalf of you, then you can instruct them to send you videos of the properties that they view, inside and out.
Ask the Locals
A good way to learn about a neighborhood and property is to ask the locals when you get there. When we say ask the locals, we don’t mean ask a buyer’s agent or an attorney, but instead the people who will be your new neighbors. If you develop a good relationship with your property’s neighbors, then they may take care of it in your absence. You might also be able to hire one of them to manage your property if you decide to use it as a bed and breakfast.
See for Yourself
When you’re buying a property to develop or in a developing area, buy according to what you see and not what you hear. A lot of people are promised that if they buy properties in certain areas, that the property prices will rise – or that the area will undergo significant regeneration. If you can’t find anything out about regeneration and development products online, then take these suggestions with a pinch of salt. The same can be said for a patch of land; don’t rely on a person’s advice and instead view it yourself, then conduct your own research into whether or not you will receive planning permission from the local government authority.
Another thing that you need to take into consideration is the property’s infrastructure. Does it have plumbing and electricity connected? If not, then how much will it cost to have these services connected. You also need to take into consideration the roads that lead to the property and the local transport network. If you’re intending on purchasing a property to live there, unless you intend on living off of the grid, then you will want quality infrastructure. Take any claims that infrastructure is “coming soon” with a pinch of salt.
Some countries do not permit foreigners to buy property in them. You need to conduct your own research on the country that you’re interested in investing in to make sure that you’re legally allowed to own property there. In some countries where foreigners are not allowed to own property, there are ways around, such as through bank trusts. With that said, if you intend on living in the country that you’re investing in, then it’s not advisable that you break the rules. This could reflect poorly on you should you make any visa or residency applications later on down the line.
While not related to property investment, inoculations are still something to think about. If you’re investing in underdeveloped countries, you might be required to get vaccinations or inoculations before you leave. The last thing that you’ll want to experience on your property investment trip is to come down with an illness and end up in hospital. You should speak to your doctor before you travel internationally and notify them of the country that you’re going to visit so that they can arrange the necessary inoculations for you.
Some countries have incredibly cheap property prices, but they’re very unsafe – especially for westerners. You need to think about this before you invest in a property abroad. If you purchase property in a potentially dangerous country, you could get hurt or robbed. Some countries are dangerous not because of people, but because of animals. Make sure you do your research and establish whether there are any animals in the area of the property that you’re buying that could hurt you and if there are, research what precautions you should take before visiting. Your safety should always come first.
Investing in international property is a great way to make a profit. Make sure that you follow all of the advice offered by this article so that you can get the best deal and make the best decision.