One option for property investors that is always popular is foreign property investment. Often, people invest in foreign properties for their retirement or to start a new life in warmer climes, but even if you don’t intend to live in another country, there are still opportunities for you to invest in foreign markets and achieve good returns as a result. This guide takes you through the basics of foreign property investment, some of the most popular places to invest and things you need to think about when making the move to a foreign market.
What are my options for foreign property investment.?
There are several different things you can do when it comes to foreign property investment – after all, it is fairly similar to investing in your home nation but just in a different location. One popular option is to invest in tourist areas and then either rent the property out as holiday lets or sell it on, often to expats. It can be a good idea to look for up and coming holiday resorts that have properties in need of development as you can make a good profit on resale or achieve a good income stream through letting them out after doing them up.
You could also invest in the time share market as an owner, where you would own a property and then let it out to holidaymakers who all have a stake in the property. This is a common option for a lot of foreign property investors, as is setting up small guest houses or hotels.
What are some common markets?
The foreign property market is ever changing, just like the home market. There are, however, some countries that are eternally popular with investors. For example, Spain is a very popular choice, particularly among British investors as there is such a large expat community over there. France, Portugal, Majorca and Cyprus are also very popular options and they offer a lot of scope in terms of what’s available.
It’s also worth paying attention to emerging markets such as Bulgaria and other countries from the old Eastern bloc. Now those countries have joined the EU, it is much easier to invest in them. They are undergoing massive development but it is still possible to get properties for a good price and then sell them on for a profit, making this a currently very attractive market. If you’re looking to go further out in terms of location, then New Zealand, Australia, Florida and South Africa are good options.
What do I need to think about?
As with any property deal, there are things you need to think about when investing abroad. You should pay special attention to the location and thoroughly research the market – preferably through the first-hand experience or through the development of a partnership – before you invest there so you know you’re getting a good deal. For this reason, people investing abroad often like to do it as a joint venture, with someone who knows the foreign market well. Also keep in mind that property laws will vary from country to country, so make sure you understand the ins and outs of their tax and legal system before you invest.
If you want to know more about the benefits of joint ventures, which are useful for foreign property investments, please visit the joint ventures page of our website, Tycoon System.