Investing in overseas property is good but you must have knowledge before take a risk. Here are 10 tips you need to know before venturing into international property investing.
1.Know your purpose
– You must have answer about this 5W and 1H question before starting :
a) Why do you want to invest ?
b) Where do you intend to invest ?
c) When do you intend to invest ?
d) Who are your target tenants ?
e) What do you intend to do :Purchase as owner or as pure investment ?
h) How do you plan on financing your investment ?
If you get the answer, you can get clear picture to invest..
Research before invest. You can use internet to find the best location, property and get advice from expert. There’s also local and property seminars to help give good overview about different property investing landscape.
Read investment book that will provide you with useful strategies and insights into property investment. Set up your research into the latest trends. Research will grant you a better starting.
3.Target and locate
Narrow done your target market for investment purposes. Individual target markets would usually have a trending location choice for accomodation. Find the accessibility of the property to public transport and amenities, school, work, etc..
4.Weigh out the prons and cons
You must consider the prons and cons of the property. Look into the trends of the markets. The housing price indicator reflects whether the market is experienceing an uptrend, downtrend or a plateau.
5.Rental yield versus capital growth
Consider the rental yield of your property of interest. The rental yield for each country is variable – different locations and property types will generate different rental yields.
6.Demand versus supply
Investigate and monitor the vacancy rate versus the rental occupancy rate of each country. Always look for areas where there is high demand. The higher the occupancy rate, the higher the demand for rooms.
7.Understanding the different buying processes
Understand the different buying processes involved from protocols, to rules and regulations in buying a property. Understanding the process from the beginning will allow for a smooth and quick transaction.
8.Law abiding investor
Different countries have imposed certain restrictions for foreign property investors. Learn and familiarise yourself with the property laws of the country.
9.Financing eligibility and requirement
Ensure you have sufficient capital and are in fact eligible for financing when considering investing in your country of interest. The financial eligibility and requiremens for foreigners to invest in properties will differ from country to country.
10.Keep your research close, but keep the property experts closer
Just visiting internet is not enough. You must get an advice from local property expert. They can guide you to the latest trends, property news, capital appreciation and more..
Source :- The Star Property