Is Buying Property Abroad Really a Good Idea?
Are you interested in buying property abroad? My guess is that you are, otherwise you probably wouldn’t be reading this article. This page will give you some food for thought, so that you can assess whether buying overseas property is right for you or whether it would be better to focus your attention on other investment opportunities.
The Reasons People Want to Buy Property Abroad
The reasons people choose to buy international property are many fold. If it is a property for them to live in themselves, then many times it comes down to something they have seen on a property program about people that have moved abroad and enjoy a much better quality of life. They see the sun and surf along with the relaxed way of life on television and think that they want some of the same.
Those interesting in purchasing overseas property as an investment have often been swayed by a smooth talking sales person at a property exhibition or on a overseas property inspection. Often investors looking at buying abroad are disillusioned with the property market in their own country and seek more fruitful or quicker profits.
Whatever the reason one decides to explore buying property in another country, the fact that this is potentially a very risky venture, should not be ignored. There are many thousands (if not hundreds of thousands) of people who have lost enormous amounts of money trying to break into the overseas property market. The first thing you have to be careful of is that you aren’t to easily swayed by the dream of owning property abroad and that you don’t lose sight of the risk involved.
The Advantages & Disadvantages of Buying Property Abroad
Here is a list of a few advantages and disadvantages of taking the plunge into owning overseas property.
- There are huge capital growth gains to be made if you invest in the right country at the right time. These are gains that might be impossible in your own country, for various reasons.
- If your own country is proving to be difficult to invest in profitably, there is normally another country, perhaps not to far from you that you can invest in and still make a profit. This gives you great flexibility and allows you keep on investing and making money know matter what your local property market is doing.
- There maybe significant tax benefits and loopholes that you can tap into by investing in certain countries.
- The cost of investing might be extremely low in comparison to the price of investing in your own country. Therefore your money will go a lot further than it could if you invested in your home location.
- It could provide you with a second home that you can vacation in, hence improving your quality of life.
- You might be investing in a country where you don’t speak the language, so you might have to trust others when it comes to understanding the local culture and rules regarding property purchase.
- In certain countries you might have to provide large deposits to be able to buy property, whereas you might have been able to buy property in your own country for little or no money down.
- If you are buying in a country that is undergoing a economic or political transformation, (which is often where the best deals are) you taking a risk because if things change for the worse then in a worse case scenario a government that is unsympathetic to foreign investment could come into power. This could signal the end of your investment opportunities and your property might even be taken away from you without giving you any money back in return.
- You cannot easily keep an eye on your property investment. Therefore you will probably have to rely on local professionals to do it for you. Unfortunately, as in any country, these local professionals might not all be honest and they might be taking your money and not giving you the service they promise. The next time you come to visit your property; you might find that, because it has been neglected, it is a shadow of the property that you remember.
- Many times, it is difficult enough to find competent professionals in your own country. If you have to find them in another country that you visit infrequently, plus that you don’t even speak the local language, you could be in for a serious headache.
Is Buying Property Abroad Right for You
At the end of the day, only you can decide whether buying property abroad is right for you. However there are certain things that might make you more likely to be successful at investing in property abroad.
These things include, but are not limited to:
- Are you the sort of person that doesn’t like risk and likes to be in control of everything? If you are, then investing in property abroad will probably drive you crazy.
- Do you have excess fund available. One of the major mistakes people make is to accept the initial amount they are told for buying property abroad, and think that this is going to be the total cost. There are virtually always unforeseen costs, or costs that people have simply forgot or omitted to tell you about. You must make sure that you have reserve funds available at short notice.
- Do you have experienced people around you, you can trust, that have already bought property abroad and that are able to guide you in the process? If you do, you are much more likely to be successful at it yourself.
- Are you prepared to do lots of initial homework and find out about the buying process in another country so that you can be sure that when you speak to professionals that you understand what they are saying and that you can recognise when they are try to pull the wool over your eyes or they simply don’t know what they are talking about.
For more information on buying overseas property, be sure to take a good look around the rest of our site as well as using the search function at the to right of this web page to search our web site for any specific information you need.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.