International Property Investment – Rewards and Challenges

Many people who consider real estate investing consider the option of international property investment. There are both rewards and challenges to this type of investing. It can be extremely lucrative, and, by definition, your options are unlimited, as you can choose any location in the world for your investment property. On the challenges side, you have to do quite a bit of research into the places you are considering. Here are some of the main things to consider before you think of investing internationally:

How Will You Use the Property?

Is this a place you want to live yourself, or perhaps retire to someday? Or is it strictly an investment? If it’s either of the first two, you want to make sure it’s a place where you’d be comfortable. You should make at least one visit there before even considering any purchases. Ideally, you should visit any location you are considering an investment in, even if you don’t intend to live there. There are simply some things you should see for yourself.

Price vs. Other Considerations

Some investors think mainly of finding a bargain, and these are available. However, you should also think of factors that could possibly be relevant in the future, such as political and economic stability. For example, at this time there are some apparent good values in Eastern Europe, but in many cases the instability of the political situation would make an investment there risky.

Financing International Investments

International financing can be a bit tricky, as you are dealing with banks and governments of more than one nation. You can handle the financing with a local lending institution, as you would if buying something local. You could also investigate a loan from the country where you want to buy. The conditions and restrictions will, of course, vary, depending on your financial situation and how friendly the country is to foreign investors.

There are other options as well. Sometimes the developer of a property will offer you a mortgage to expedite a sale. You have to consider the terms carefully, considering the laws and regulations of the country where the property is located.

Then there are international mortgage brokers, who specialize in providing financing to international investors. This can sometimes be the easiest route to take, as you will be dealing with someone experienced in dealing with such situations. However, be sure to investigate any company thoroughly before making any commitments with them.

Consider the Costs

When investing internationally, there are many costs involved, some of which you might not be aware of if you are new to this kind of endeavor. In France, for instance, fees differ depending on the age of the property (the older the property, the higher the cost).

Taxes vary a great deal from place to place. There can be taxes on purchases, property taxes and taxes on rental income. If you plan to live where you are buying, some countries charge foreigners a special tax. Other places, such as the Cayman Islands, are virtually tax free.

Advantages of International Investing

Despite the challenges, and the research you have to do ahead of time, the advantages to international investing are significant. You are not limited by local economic conditions. You can literally make a list of everything you want, in terms of climate, price, economic and political conditions, culture and so forth and find the place that best suits you.

International property investment can be a rewarding and profitable decision if you make sure to gather the necessary information.

Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a property investment company who also deals with International Property Investments with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.

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