4 Things To Consider When Investing In An Overseas Property

If you are looking for ways to invest your money, you may want to consider investing in real estate opportunities abroad. There’s no denying that real estate investment can be tricky at the best of times and even more so because there is still a range of pros to investing in property in another country. Depending on what you wanted to buy the property for, you could either have a holiday home that you can use all year round or you could let the property for a higher amount than other buy-to-let properties.

What to look for in an overseas property?

You need to think long-term when it comes to an overseas property if you want this to be a good investment. Consider looking to more established markets as it will be a safer option and you will likely find a good mortgage deal easily if it’s in a location that is already well established. There will always be new investment hotspots that come about which can be tempting, and it might be easy to find a decent bargain in a country where prices have fallen dramatically, but it’s always best to stick to somewhere that is easily accessible. 

Location is important when it comes to looking for overseas property. You want to look for places that are popular with tourists with good local amenities Some countries may have different holiday seasons where they shut down once the busy period is over, so it’s important to research this to know if you are likely to experience quiet time on your property during the year. 

Another thing to consider when looking for property overseas is how much the rates are for rent in the area you are looking to buy. This will give you a rough idea of how much money you could bring in. If you are looking to buy a property that is already currently being rented out, find out how much the owner rents the property for and how often throughout the year it is occupied. 

Be sure to consider the legal aspects of investing in an overseas property is crucial. It is advisable to engage the services of a reputable law firm to navigate the legal complexities involved in cross-border real estate transactions.

How to find tenants for your property?

If you are located in a different country to the one where you are buying property, it could pose a slight issue. The best way around this is to use a local estate agent who can manage the property for you. You will need to take into account the fees that are needed for the estate agent to manage this and try to attract business for you. 

Another good way to find suitable tenants for your property is to have family and friends recommend the property through word of mouth which could help generate interest. There are also holiday letting websites you can use to advertise the property to those looking to rent. 

Countries to consider buying a property in

Buying a property in another country can work differently than in your home country, so if you do decide to invest in overseas property, make sure you do your research. Depending on what country you buy a property in, you may need to pay additional tax on any income earned through the property. It’s advised that you peak to your local tax office regarding this.  Here are three countries for you to consider. 

Singapore

Singapore is considered one of the safest forms of investment for people who are looking to earn extra money. It’s a popular destination in Southeast Asia where people go to seek new cultural experiences and allows people to pursue their passions. It’s a year-round destination for many people although it is more popular between February and April. Singapore has a lot to offer for a range of tourists. If you’re a shopaholic, you’ll be in heaven as there are several high-end shopping malls around the city. If you’re more of a history and culture fan, you’ll be able to take in the array of museums and historical sites. The Singapore mortgage rates are relatively low and remain stable in the market. 

France

One of the most popular destinations in Europe, owning a property in France can be highly beneficial. The climate from north to south is varied and a lot of the French nationals go on holiday in these areas for that reason so it’s highly likely that if you buy a property in this country, it will be occupied throughout the year. The language is widely spoken throughout the world, so people are more likely to go to this destination on holiday regularly. As with Singapore, the interest rates are quite low, especially compared to other countries across Europe. In terms of return on investment, the French real estate is one of the most popular markets to invest in. 

United Arab Emirates

If you are looking to reap the maximum benefits of your investment, you should look into buying an overseas property in the UAE. The UAE is a tax-friendly country that offers a higher rental yield. Dubai and Abu Dhabi draw millions of tourists each year so if you are looking to let the property, there shouldn’t be an issue in finding a suitable tenant. Dubai is known for its large skyscrapers and is a regional business hub, so you may find a tenant who is frequently traveling there for business purposes looking for a place to stay. You don’t have to pay tax on your rented property as there is no income tax, making this a good location to invest in. 

Additional costs to consider

No matter where you decide to buy a property, you should always factor in costs for keeping the place to a high standard. This means you need to consider costs for cleaning and maintenance. You also need to think about insurance for the property when you are renting it out so it’s important to think about the type of cover you may need. 

Investing in property in another country can be challenging but there are many advantages to it. Ensure you do your research into the markets beforehand and you can end up with a good nest egg on your hands.