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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.
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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.
Tourist appeal.
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?
Global stability.
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!
Location.
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?
