Investment overseas property
Some people invest in property overseas to have a vacation home, a sort of retreat away from the daily routine. Others invest in overseas property as a place to go to on retirement. Yet others invest to earn income, by giving that property on a rental basis. Then there are those who invest with the sole reason to sell when the real estate market is booming and sell that property for a neat profit.
Whatever the reason, the very first point that you should note is the word ?overseas• • it implies that you are not a permanent resident of the country in which you will be investing. It implies that you are investing in a country about which your knowledge is very little or zilch. Investing in real estate is risky, and the risk is double when you are investing abroad. So tons of research and careful decisions need to be made before entering the overseas property market.
Facts To Know Before Investing in Overseas Property
• The laws of the country on investments in property by non-residents
• The taxes involved land tax, VAT, etc.
• The currency exchange rate
• The local currency you will need this for your expenses when scouting around and for later, when you reside there.
Pointers to Investing in Overseas Property
You should not invest in a property overseas merely because everyone else is doing so or because it is raved about in the media as an exciting prospect. Selecting on a country to invest in and a particular region of that country involves sticking to a budget, having plenty of know-how, lots of leg work and a bit of instinct. Before all these factors come into play, however, you should look at some obvious indicators that point to a good property investment abroad.
• A good economy
• A stable government
• A booming tourist industry
• Good infrastructure, such as airports, roads, public transport, etc.
• Rights to buy property are in your favor
• Excellent growth potential in the property?s value
Steps To Take Towards Investing in Overseas Property
• Contact a good attorney conversant with the local laws, specifically in relation to real estate investments.
• Contact creditworthy real estate firms / agents
• Don?t restrict yourself to one firm / agent. Contact 3-4, to get a wider choice and the best price.
• The agent should have expertise in local building services and know the neighborhood extensively.
• Double check that the property you are investing in is not immersed in some legal case or that the seller is not in a debt situation.
• Locate the best money transfer firm for quick and easy transfer of funds from your home country to the country where you will be investing.
• Don?t sign any formal documents unless these have been looked at thoroughly by your attorney. If in any doubt whatsoever, drop the deal altogether. Be especially careful not to sign any papers that are in an unknown language that you do not understand.
• Don?t make your final decision based solely on what the agent tells you. Do some independent homework on the property, ask locals about amenities (stores, medical facilities, etc), walk around the neighborhood yourself, do extensive research on the builder if investing in an upcoming development, ask for advice from real estate professionals back home, and so on.
• Apply for insurance pronto. Don?t forget to find out about insurance cover in relation to local insurance policies.
• Find out about all other expenses, and not just the main purchase price: There will be notary fees, maintainence fees, and other charges that the agent often does not mention. He is more likely to talk only about his commission!
Some Examples of Overseas Property that you could invest in
It should be pointed out at the outset that the author of this article is no expert in real estate! The following mentioned places are merely suggestions for investments in overseas property, and should not be considered as definitely sound investments. Nor are the properties mentioned the best ones. The places and properties have been randomly selected from the World Wide Web from various real estate listings. It is up to the reader to make the final (and wise!) decision on where to invest.
1. Malaysia: A flourishing economy in Malaysia combined with the abolition this year of Capital Gains Tax on all property deals makes this country an exciting prospect for investments. Those who wish to invest in property for a longer period often go in for apartments in Kuala Lumpur, the capital of Malaysia. A fully furnished apartment with all the requisite luxurious amenities including a complex pool and spa facilities, located in the city?s centre has a price range of 210,000 326,000 GBP. Another great place to invest is in the very popular tourist hot spot of Sabah, located on the island of Borneo, about half-an-hour from the Kota Kinabalu International Airport. Here you can invest in a fully furnished luxury 1-bed villa with its own private balcony or courtyard, the price starting at a little over ?112,000.
2. Mongolia: This country will not be on the list of many investors, often mainly due to ignorance of the potential in its real estate market. The purchase costs are not very high, nor are the taxes forbidding. It definitely has plenty of attractions for tourists and the value of land is spiraling quickly, especially in its capital city, Ulaanbaatar. Large apartments for families are very much in demand here. You can get a 3-bedroom apartment with a starting price of over 71,000, while a 2-bedroom apartment will begin at around 55,000.
3. Grenada: Though not as popular (as yet!) as a tourist destination as its neighboring Caribbean islands, Grenada nevertheless does have plenty of potential as an overseas property investment hub. Improved infrastructure combined with a few tax exemptions makes Grenada a good option on your investment property list. The island has some stunning beaches and magnificent waterfalls. Look for investing in one of the upcoming resorts that are being developed on the outskirts of the capital, St. George. The resort will have a combination of residential apartments and hotel-and-spa facilities. Those who buy an apartment automatically get access to the hotel ?s luxurious facilities.
4. Bulgaria: Thanks to its panoramic coastline and fantastic ski facilities, Bulgaria is one of the most popular tourist destinations globally. This translates into a great investment opportunity in property. Good areas to invest are in the ski resort towns of Borovets, Bansko, and Pamporovo. An idea of property prices: An apartment in the suburbs of Bansko could cost a little over 51,000 Euros, while a studio apartment in Borovets generally has a starting price of over 38,000 Euros.
There are plenty more regions you can invest in Spain, France, Dubai, etc. Wherever you invest, do make it a point to spend a few days in the area. Learn the culture of its people, and understand what lifestyle you will be switching to once you take up residence there, whether permanently or just once a year.
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