6 Important Tips For Investors Looking Into Buying International Real Estate

Saturday, April 25, 2020, 6:00 AM | Leave Comment

Investing in overseas real estate is both exciting and risky. You may find yourself drawn to vibrant urban living or affordable holiday island homes, but there are some real concerns and risks.

Many property investors are checking out opportunities in developing countries.

With the necessary precautions, foreign property investment can be the foundation for significantly growing your profit.

If you are looking into buying international real estate, check out the six tips listed below to minimize the risk and maximize value for your money.

6 Important Tips For Investors Looking Into Buying International Real Estate 2

  1. Don’t make rash decisions

    Make sure to base your decisions on hard facts and figures. Rushed decisions may increase the risk factor. To avoid financial loss, make sure your mind is clear, and your eyes are wide open. Don’t follow others blindly and instead, do your research on local developers and use your sense of judgment. Be wary of new builds and fixer-uppers. Regional contraction associations can help you navigate local markets as well as the relevant local legislation, building standards, and more.

  2. Get to know the local market

    If you are planning to buy a property in a foreign country, you have to understand the local market. Conducting in-depth research using reliable and reputable sources is vital. This means you will have to put a decent amount of time to be able to grasp everything from microeconomics to rental rates.

    Consult governmental and other credible sources to better understand the local market, economy, regulations, and other points of interest when looking for real estate across borders. Blogs and specialized websites can be great to find out other people’s tips and experiences, but they are not sufficient.

  3. Explore future holiday hotspots

    Selecting a country to invest in is crucial in international property investment. Countries like Montenegro are excellent investment opportunities. Tourism is booming in this small country, and it is estimated to contribute to the country’s GDP around 36 percent by 2021. This country has reinvented itself as the Adriatic jewel and is attracting more and more tourists and investors.

    Since the market is still developing, and the properties are cheap, investors can expect substantial value for their money. And with the most millionaires per capita in Europe in Montenegro, many foreign investors are seizing this real estate opportunity. For example, beachfront rentals are currently in high demand, so be sure to explore your options and see if you can invest in seaside property in Montenegro while the prices are still affordable!

  4. Enter the international market slowly

    If you are a newbie to the industry, dip your toes and start with a smaller investment. Managing risks with smaller investments will allow you to gain experience and get a grip on the process. Once you get comfortable enough and have a decent number of smaller investments under your belt, you can pursue larger investments.

    For beginners in this field, investing in low-cost, less-risky properties are advised to ensure you’re managing money and risk properly. Don’t chase super-high profit when starting your venture. Also, be cautious of investment projects aimed at foreigners. Some of them are looking for ways to overcharge those that lack knowledge about the local market.

  5. Consider investing in a failing economy

    When it comes to countries with weakened economies, you have to be extra cautious and carefully plan your investment. Take Greece, for instance. Amid debt crises house prices have dropped 40-50 percent on average, and more – currency exchange rate offered an additional 20 percent decrease in sales prices. With the uncertainty of Greece’s economic future, investing in property comes with significant risk.

    However, Mykonos and Santorini are considered to be exceptions, and the demand for holiday homes has sky-rocketed in these islands. Foreign investors have recognized an opportunity to cash in on bargain prices. Acquiring a home on these famous holiday islands can be worth the risk.

  6. Find the right people to assist you

    Exploring the real estate scene abroad is much easier with the right team to assist you along the way. Before making any overseas investments, finding lawyers, real estate agents, accountants, and other reliable experts is a must. Attending a conference is a great way to meet other investors, learn about the experiences of expert panelists, and find out more about investment opportunities.

    Also, consider hiring an international real estate investment company to help you manage when entering an unknown market. They have large teams of experts and resources to navigate you through investment opportunities with the least amount of hassle.

Investing in properties abroad isn’t easy and simple. Still, if you stick to these tips and explore the international real estate scene properly, you are on an excellent way to earn considerable revenue.

About the author

Mike Johnston is an avid freelance writer and blogger. He is a regular contributor to the Smooth Decorator blog. Mike’s specialties are home improvement and construction, but he also often covers commercial and residential real estate.

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