There are numerous overseas property investments to choose from, but how do you pick the best one? Below we have outlined 5 simple tips for you to consider when buying abroad, so you can make the most of your overseas property investment, in terms of return on your investment. The 5 tips below could see you double or triple your overseas property investment in just a few years, so here are your 5 tips for buying an overseas investment property. Note: Against each tip we have provided an example of a solid overseas property investment and its advantages to reinforce the points. 1. Buy an Established Market There are a lot of overseas property investments that are touted as the next big one for growth and you should get in early. Problem with many of these overseas property investments is you are one of only a few in and prices never take off and worse still plunge in value. The best way is to buy an established overseas property market that has a track record of good growth and where prices are still relatively cheap and have potential for further growth. Costa Rica: The market has been growing steadily for the last 10 years and the average growth is 300%. This is an average growth and many investors have made much more on their investment, by careful choice of locations. 2. Look for competitive Prices Once you have found a good established market that has had good property growth rates, look for prices that have the potential to give you further potential growth on your overseas property investment and that the market is not over priced. Costa Rica: Despite the past growth rates prices still remain around 70 80% cheaper than equivalent properties in southern US states, such as Arizona or Florida. 3. Look At Long Term Prospects for the market Take a look at the long term prospects for the country that your overseas property investment is in. For example, how does the local economy look from a growth and stability point of view? There is no point risking your money in an overseas location that has the potential to be unstable politically or economically. Many overseas property investments advertised are in economies that are poor and where the government and political situation is fragile. Costa Rica: Is a long established politically stable democracy and doesnt even have an army! The country is stable, has the potential for substantial growth and this fact is reflected in the huge investment from both US residents and corporations such as Intel 3. Look at Up & Coming Locations in the country If you want to make more than the average growth rate from your overseas property, then look for new and up and coming locations. As locations become established, they become more expensive and growth potential drops. Look for the next hot are and look at the coming infrastructure to see if you can take advantage of buying near important new developments Costa Rica: Consider the following changes and think how you could take advantage of them. 1. A New freeway Due to be completed shortly, this road will link the largest metropolitan cities to the Pacific Coast. 2. A New marina The largest marina in the country will be completed soon in the coastal town of Quepos. 3. A New airport A new international airport is being planned and will be built near the town of Orotina. Buy near these and your investment can take advantage of increased prices once they are completed 6. Rights and Ease of purchase Many countries dont give favourable purchase rights to overseas investors and this can mean problems if you dont do your research, or there are laws that apply to you that are unfavourable. Costa Rica: Offers the same rights of ownership for foreign buyers as residents and the buying process is made simple by the government, who are actively trying to attract overseas property investment to Costa Rica. Overseas property investment do your homework! Dont fall for sales hype and buy locations that may look good make sure that if you do overseas property investment, the location looks good already. Make sure you do some research on the country itself in terms of stability prospects and legal rights for buyers. Do all of the above and you should dramatically increase the potential for growth from your overseas property investment. |
