For many of us the primary reason for buying a home overseas would be for holidays, using it to spend more time with the family in our favourite location.
Increasingly, however, investors are using overseas property to generate income with the lure of high rental yields and capital growth.
Ironically the economic downturn may present new opportunities for the overseas investor as there follows a global correction in property prices.
As rental yields and capital growth figures start to look attractive again, interest in the overseas property market will return.
| || Choosing the right overseas property. |
If you're considering a purchase overseas, it's extremely important to take some time to make sure you choose right property. Here are a few tips which should help you make the right choice..
Set a realistic budget.
You need to be realistic about your budget, there's no point at looking at property you can't afford. The best locations tend to be the most expensive, which is fine if money is no object. In investment terms location needs to be married with price and future growth potential. It's normally a good idea to speak to an international mortgage broker before you start looking to see how much you can borrow.
Look at the potential for growth.
Do your research and make sure you have the information to understand what could happen in the future to enhance the location. Are there major infrastructure plans for the area, eg a new road network, airport expansion or marina development which could drive visitor numbers up?
Property is still a top investment choice, but you will need to do your homework to maximise the potential for investment gain.
It's important to choose a destination which is attractive to as many people as possible. Does the location have naturally outstanding scenery, renowned leisure facilities or cosmopolitan urban areas? Will people want to return to the area year after year?
Do some research in to the economy of the country, and look back through history. Has the country had a chequered past to Civil rights and has there been any recent conflict? Political uncertainty can drive property prices down so make sure your investment is safe. Before making a decision about the country itself, take a close look at the neighbours!
Identify the country's best locations and try not to be drawn by the country itself. If the area is popular as a Ski resort, make sure your property is close enough to the lift system and amenities. A property an half hour away from the slopes may still have stunning scenery, but will Skiers want to stay there?