From the currency rates to a better value for the investment, people are flocking to overseas properties. Even the experts aren’t keeping their cards close to their chest any longer. And, they love to keep a secret. But, before you can invest, you must know a few simple rules. Here are the basics.
1: Hire A Local Agent
An investor needs an estate agent by their side to guide them through the process. With their skill and experience, a realtor will make the situation a breeze. Of course, this is the same for overseas investment. Where you have to draw the line, however, is with geography. Local agents know much more about local properties, and their knowledge can be the difference between success and failure. Big, corporate realtors might have the PR, but they lack familiarity with the location.
2: Be Careful Of Emerging Markets
It’s tempting to get mixed up in up and coming locations that house dirt cheap properties. After all, the return on investment in such an area would be massive. However, the rumour mill isn’t trustworthy, especially abroad. Regulations aren’t the same and things can change like the weather. The better choice is to opt for an established market because it is predictable and affordable.
3: And Exchange Rates
Even if you find a house that is dirt cheap and accommodating, it is possible to lose money. Why you ask? It’s because of the exchange rate. In truth, an average person doesn’t understand exchange rates. Sure, you know what the rate is and can compare it to the pound, but that’s about it. Regarding an overseas transaction, you need a comprehensive knowledge of the industry. To make sure everything is above board, a currency specialist can transfer money at the top rates.
4: Remember To Pay Your Taxes
Some things are different overseas, but taxes never change regardless of the location. Okay, the amount might differ, but they still exist because the government wants their cut. When you invest in overseas property, it’s essential not to forget and to pay what you owe. To be honest, the first port of call is to check how many taxes they are and how much it will cost. A cheap investment can soon become an expensive nightmare depending on the laws of the country. Think about VAT, stamp duty, and any profit you will make from the investment. Sadly, they are all liable.
5: Make Sure You Can Buy It
It sounds obvious, but there are countries where foreigners can’t own land. The typical example is Thailand. In their laws, non-Thais can’t invest in property, which means they can’t own a building. If you are thinking about the people who own bars in the islands, there are loopholes. However, it usually consists of putting the property in the name of a local. Of course, this is a risky move because they have the leverage. So, check that foreign investment is legitimate before making a bid.
Ultimately, these tips will ensure you don’t miss the boat regarding an overseas investment.