5 TIPS for Overseas Property Investments ADVICE
When buying investment property abroad, you should always take your time to research your options, and the property market, and get overseas property investments advice from independent experts. Buying a property overseas is a very exciting prospect but never rush the decision. Here are 5 overseas property investments advice tips that can enable you to choose a successful and high-yielding overseas investment property.
1. Define Your Motives and Think About your Exit Strategy
Before buying an overseas property, you should always think about your aims and potential exit strategy. What is the purpose of the property? Do you want to purchase a buy to let property, or are you looking for quick or future resale? Do you want to use the property as a second home as well?
2. Research Overseas Locations
If you don't yet know where you want to buy an investment property, you should research overseas property markets and explore their respective benefits and disadvantages. Focus on up-and-coming areas, that also have future potential. Buying in the most fashionable locations in Spain and France might mean less property appreciation in the future, while buying in Turkey or Bulgaria, where property prices are still low might be more profitable in the long term. Below market value properties, combined with potential economic growth in the future also represent good investment opportunities. The recent economic downturn in the US for example offers unique property investment opportunities.
3. Get specialist overseas property investments advice
Investors who take time to choose a reliable overseas property agent will have fewer problems and can significantly lower their costs. Research the company you've chosen and dig around for the company's track record and testimonials. You should also seek independent advice from lawyers, who will be able to protect your rights and inform you about any potential problems.
4. Do the numbers
Buy an investment property that you can afford and think about any future expenses. If you are getting a mortgage, your repayments will last for years, which could become a significant burden. Think about possible exchange rate fluctuations that can substantially affect the value of your property, and any mortgage repayments. Consider any additional expenses and taxes you will have to pay, as the costs of purchasing a property abroad can be higher than in the UK.
5. Research the property location
Buying investment property abroad can be risky as you might not always see the property before purchasing it, and travel costs can mean further expenses. Always try to visit the property before investing, or at least ask for overseas property investments advice of people living in that area. Even if your primary aim is not to rent out the property, you will need to assess the attractiveness of the property, proximity to local amenities and the economic and political stability of the location.
Belgrave Group is UK-based independent property investment company. If you are planning to buy overseas and need overseas property investments advice, read more about our investment properties in Detroit and Atlanta, and register for our newsletter.
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