Real estate investments are all about getting the best property in the best location. Investing in real estate overseas is an excellent opportunity to network beyond the United States market while building your portfolio and generating passive income.
However, before dipping into the international market, you should consider a few things before investing in real estate overseas.
Why Are You Buying Property Overseas?
One of the most important considerations when buying property overseas is understanding the purpose of this significant investment. Are you purchasing this property to profit from your investment, or are you buying the property with relocation in mind?
Understanding your end goal and purpose for this investment will allow you to make appropriate decisions when choosing a property.
How Will You Fund & Finance This Purchase?
When you understand your purpose for this investment, you should begin securing finances and funding. You should consider understanding the international laws and regulations regarding property investments.
As a starting point, build a relationship with your private money lender so they can walk you through the process of funding your international investment. You will be asked to obtain an “Agreement in Principle,” which is a contract that will provide coverage if you’re not eligible for the loan.
Have an Effective Way of Communication
Whether you’re relocating or not, you must consider learning the language to interact with local businesses and agents. Overcoming the language barrier will help prevent miscommunication and delays in the deal. Taking the time to learn and understand the language can help you in the long run.
It would also help to befriend a local or hire a translator to help you navigate through the investment deals.
Understand the Country’s Money Value & Exchange Rates
It’s worth understanding the country’s value of currency and exchange rates. Understand that you will need to open a bank account and obtain a “Certificate of Importation” to make paying legal fees and taxes easier. Knowing this information will help you execute a smooth and trouble-free transaction.
How Will You Protect Your Property When You’re Not There?
If you’re not relocating permanently, you should consider organizing security year-round, even when you’re not there. Hiring a local property management firm that checks your property and provides proper cleaning and maintenance is a great way to ensure your property is safe.