Overseas property investment is a fantastic way to improve your existing success. It can be a new venture that could become extremely profitable, especially if you have already shown some proficiency in property management at home.
But, investing in property in another country is not as straightforward as you might expect, and you cannot merely waltz across the border and put an offer down on a luxury apartment or beach house. Just like anything worth doing, you must make sure you plan and research properly, so this guide should help you get an idea of everything you need to know before you invest in overseas property.
Get Everything In Writing
A paper trail is vital when working with anything, but it’s arguably one of the most critical aspects of the process with overseas properties. Many potential investors will neglect this paper trail, as they will do most of their conversations over the phone. However, using emails, instant messages, and printed-out contracts will enable you to clear up any misunderstandings, especially if you do not speak the local language. By having everything in writing, you will also have an easily accessible record of what has and has not been agreed, which will help keep you organized and informed
Work With a Translator
The idea of purchasing a property in another country is exciting, especially if it’s one that is markedly different from your own, with better weather and more exotic conditions. However, this also means it’s unlikely you will be able to speak the language, at least proficiently. Hiring and working with a translator will give you the support you need when working with current property owners who might not speak English, and while you can’t speak their language, either. Look for a professional translator, rather than just a friend, as they will know how to explain and translate each word accurately.
Think of New Versus Old
The type of property you purchase is also important. You must think about whether you want to buy an older property or a new build. While new builds can be more affordable, depending on the area, they can also come with a range of issues that you won’t know about for a while. On the other hand, older properties might require significant repairs to upgrade it and make it liveable, meaning you will spend even more money. When looking at a resale HDB price, you can compare the property type, and the property’s age can help you narrow down your options.
Ask About Taxes
As taxes will vary from country to country, you’ll need to get an idea of what you need to pay and how you can pay them. This will keep the authorities off your back and prevent any severe penalties (or prosecution). The best way around this is to speak with a local tax officer who works exclusively with foreign property investors to ensure you understand how to do everything the right way.
Check Everything Is Legit
You want to hope that everything is straightforward when arranging your [property investment. But, there is the risk that someone somewhere during the process has fed you incorrect information, and this means that the entire process may not be as legitimate as it first seems. For one, there might be a specific law about foreigners outright owning property, rather than sharing ownership with a legal citizen. There’s also the issue of the deed and title. If the current owner does not have the title, they are legally incapable of selling it, even if you have already handed over the money.
Visit The Area At Different Times of the Year
If you are already familiar with the country where you want to invest in property, then you might have a decent idea of what the weather and how busy the area is. But, this might only be at one time of year. It’s worth visiting the country at all times of the year whenever you can to get an idea of the conditions and the number of tourists or visitors. This can help give you an idea of whether you will be able to rent out the property throughout the year if you need to, or if you will be restricted to just a few months when the weather is pleasant.
Building Your Empire
Finding the perfect overseas property can be highly profitable for your property management business. With the world being as connected as it is, you will find it more straightforward than ever to do your research and find out everything you need to know so you can hit the ground running wherever you are and wherever you want to go.