But all that glitters isn’t gold; there are a number of responsibilities to consider when buying overseas. Whether you’re buying to rent, or you want to develop a property to sell as soon as possible; you’ll need to get to grips with a country’s law, rules, and regulations. Therefore, it’s crucial to your investment success to go every detail thoroughly so that your purchase can lead you to a cash boost, financial success, or a steady extra income. After you’ve chosen your destination; it’s best to think long-term. A long-term investment is the safest option, and you’ll get far more out of what you’ve put in. The following are some ideas for those who want to invest in properties overseas, and some inspiration on where and what they should be looking at.
Residential Properties
Think about purchasing homes in place where there is both an established and growing market. Countries that are popular for people to move to for work and for a better lifestyle, should be your first port of call. Singapore has long been a hotspot for business expansion, and as a result; employees are moving there in their droves to work, live, and stay. Therefore, it’s a wise decision to look into real estate investment in Singapore before the prices reach a point where you’d lose money. However, business opening office up regularly in the Lion City; it doesn’t look like the need for housing is going to go down anytime soon. With a steady, growing economy; it might be worth considering buying multiple homes, or blocks of flats in various areas, depending on what equity you have to spend. Buying now will guarantee you a regular rental income, and potential sales to increase you investment in the not so distant future.
Canada is another country to think about regarding where to buy to rent; there are an increasing number of people each year heading to the forward-thinking, and vast destination. Much like Australia; there is plenty of room, but people tend to move and settle in the well known cities across the state like Toronto, Vancouver, and Quebec, and areas that lie closer to the south, than the north. However, industry and business continues to draw people into the country as well as a great quality of life. There are more options in Canada in terms of property type, compared to smaller locations that are very built up like Singapore. You could go the route of investing in multiple city apartments, or perhaps starting with a house would be more manageable if you’re starting out. Keep your eyes peeled for any new developments that might be being built; it’s worth checking if, as a foreign investor, you’ll have just as much chance as Canadian buyers of snapping up some real estate.
A property market that seems to be off the scale, continues to grow, and often favours foreign investment is London in the UK. Getting hold of a buy to rent property, or several, won’t be cheap or straightforward. However, London will guarantee to give you an almost immediately return in rental payments and your money will increase quickly. Smaller flats are the perfect way to dip your toe into the London property market, or houses that are aimed at house-shares and multiple residents so that you can grab the young professional tenant who will always be in the city. Remember that UK income tax is charged on income from letting property situated in London regardless of where you’re from. Therefore, you’ll need to consider the normal accounting principals as a landlord. However, as with any investment in a foreign country; the strength of their currency will affect your returns, so research into any peaks or troughs that may occur in the future.
And, of course; there is the US. There are thousands of US property opportunities, especially since the crash in 2008. However, you’ll still need to attract tenants or buyers, so make sure that you choose your location wisely, and don’t just buy a property because of its low price. Wherever you decide to buy to let or sell a residential property abroad; it’s always worth booking a plane ticket and heading out there first. You’ll never get the sense of a place unless you’re able to physically be there, so do your research and lock down some travel plans.
Holiday Homes
One or more holiday homes abroad is an appealing investment opportunity; you’ll have the chance to visit a sought-after destination regularly, and will be able to utilise your investment if and when you want to. Again; the US is a great place to start. Property prices in popular vacation spots like Florida can be found at low prices. However, you’ll need to consider the peak seasons, and when people don’t visit the state due to weather risks and warnings. Stick to built-up areas that are near to the attractions in Orlando and places like Tampa to ensure you’ll have a steady return. The same goes for most of the other states in America; ensure that the holiday lets that you purchase are close to, or within driving distance, of the major sights, locations, and any attractions so that you know that people will be searching for accommodation in that area.
Vacation homes in places like Bali have more chance of renting to holidaymakers for the majority of the year. You’ll be compromised by the weather in most countries in the northern hemisphere during their winters; however, island and resort locations in the southern hemisphere will have more of an all year round appeal. Depending on where you buy; you’ll need to understand if you can make enough in rental money to cover the costs of running a holiday property. Popular destinations will have accommodation that might be expensive to buy, but vacationers will always look for affordable options when booking somewhere to stay. Therefore, you’ll need to bear this in mind, wherever you choose to purchase; it’s about weighing up the pros and cons, and making the smart choice.
Popular places in Europe will again, provide a constant flow of bookings; the warmer parts of the Mediterranean are a great option as they’ll have good weather for longer. However, European countries will still suffer from colder and quieter spells during their winter months. Perhaps place in Switzerland and Italy could provide you with a holiday home that would rent to both skiers after the snow, and travellers who want to see that part of Europe in the summer months. Try to keep up a year round income, and if not; make sure that you’re able to raise enough during peak season to cover the losses in low season.
Ensuring that you do your homework and choose your properties wisely; you’ll have made an investment that will keep providing for you for the years ahead.
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