The real estate market is considered one of the biggest amongst all market industries. With trillions of dollars circulating in the global real estate market, it’s easy to understand why it’s considered a solid form of investment.
When it comes to properties, you can’t really go wrong because it’s very basic and foundational in the structure of any market and community. A lot of real estate investors may choose to go to local investments, as they’re easier to manage and track. But the real potential of real estate investments can extend beyond the local market.
Buying properties overseas aren’t particularly easy, but the return from such investments can reach new heights that can propel your business forward. Before you rush to add international real estate investments to your portfolio, here are a few things you should look for.
The Legality of Owning Oversea Property
It’s impossible to establish a standard that applies to all countries in the world when it comes to owning and investing in properties overseas. Many people may think that it’s going to be as simple as investing in local properties only to be legally blocked on numerous grounds from being able to invest in a different country.
Investing in Cyprus, for example, is easier than investing in the UK, from a legal standpoint. Some investment opportunities require having citizenship, which makes it harder for small real estate investors to compete in. A local lawyer in the country you’re planning to invest in is essential for any potential success you have in mind, whether it’s legal documents you need to obtain or consultation before launching any project.
Location Research
It’s quite intuitive to know where exactly you’re buying a property since such investments require big capital, so minimizing risk is necessary. Before you follow your dreams, make sure that your investment is done based on logical planning rather than emotion. Tourist destinations such as Cyprus are becoming more and more popular in terms of real estate.
Buying properties in this destination and tourist destinations, in general, can be quite alluring for international real estate investors since the ROI is usually high. Beachfront properties are quite alluring to both investors and those who are looking for a vacation house. Try to avoid locations that are season-based if you’re going to rent the properties out for people, or you’ll be risking having the property empty for a big portion of the year.
The Type of Residency
A lot of investments do not require you to have a permanent residency, in addition to vacation homes purchased for non-investment purposes. You’ll want to make sure to check the visa restrictions to see how long you’re allowed to spend in the country before making a decision, to know whether it’s suitable for your plans or not.
Naturally, if you plan to spend a long time there, whether for investment purposes or retiring, try choosing a country that makes it easy to obtain permanent residency. Many countries offer retirement residencies according to a minimum age, which can sometimes be as low as 45 years.
Financing Properties
When it comes to financing properties overseas, you may not have the same luxury that you get with a mortgage and other loans in your country. Citizens may easily be able to finance properties that you might otherwise have a lot of trouble securing. Even if you find mortgage plans, the premiums that they offer to non-citizens may be too high to consider investing using this option.
The most convenient financing option is usually cash since there are fewer restrictions. The main advantage is that you’ll pay a lower price compared to other options, but the problem is that it’s not that recommended for all types of properties.
Investing in properties in the pre-construction stage is not a very wise move because you’ll be taking on the risk of having the developers halt or delay the project for any reason. It’s not that uncommon for developers to run out of money at some stage and then wait until they secure enough funding to resume their work. Avoid using cash if you’re investing in long-term properties, especially if you have partners or investors on the same project.
Maintenance and Repair
Maintenance problems aren’t that big of a deal in a country that you already live in, but remotely managing a property in another country can be a bit of a challenge. If you’re investing in planned, gated, or expat communities, you can expect to have a solid network of local maintenance services easily available.
You’ll want to make sure that you hire the services of a reputable maintenance company to do routine maintenance checks if the project requires certain standards.
Investing in a location thousands of miles away can be more challenging than conventional real estate investing, but the return is satisfying enough to make it an alluring deal. Naturally, research and preparation are required to be able to successfully invest overseas. As long as you take the time and consult professionals, you’ll be on the safe side.
