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Whether you’re dreaming about owning your own modest house at the beach, a charming flat in the middle of Paris, or a convenient place to rent out to other tourists, you can actually make this happen without too much fuss.
A lot of people shy away from the thought of investing in properties abroad simply because it seems like too much hassle; there are foreign rules and regulations to read up on, an entirely new market to understand, and a certain lack of proximity to your investment from where you’re currently living.
Still, the steps to becoming a real estate owner abroad may, in fact, be a lot easier than you think, and the investment could really pay off in the future too. Here is a handful of tips to make your property dream overseas become a reality a bit sooner. That way, you can feel certain that you won’t regret your decision – and you’ll always a place to stay in whenever you feel like having a holiday.
First: Understand the benefits of investing abroad
Before you get started, it’s a good idea to have a quick chat with yourself about your reasons for investing abroad. Besides the obvious benefits of always having accommodation when you’re in the country you’ve invested in, there are a ton of other great reasons to invest abroad.
It’s a great way to make a passive income, for example, and particularly if you manage to put your money in a country that has a lot of potential for growth. Make sure that you read up on the countries that allow foreign investors to rent out their flats, first of all, so that you’re not setting your passive income project up for failure before it’s even begun.
Another benefit is, of course, that young investors tend to have an easier time buying their very first flat in a market overseas. The purchase price may be a bit lower, for example, and the currency of your home country could be slightly stronger than the country you’re investing in which, of course, gives you a lot more bang for your bucks.
This is an excellent option if you’ve just inherited a lump sum of money as you may not even have to take out a loan from the bank. Just put the cash in property overseas and enjoy the passive income you’ll be able to get for years to come.
With time, the value may even have increased as long as the real estate market went up rather than down and you’ll suddenly have a lot more money than when you started out.
Next: Finding the best country to invest in
As mentioned earlier, researching the country you’re considering to make an investment in is the most important thing you can do. You’d want to make sure that there are no current political instabilities, first of all, so that the real estate market doesn’t take a hit during the turbulence. This can, of course, be rather difficult to predict but the safest bet is to invest in a country that has been politically stable for a long time.
Do your best to read up on everything you can before making any final investment decisions and you should be able to pinpoint your ideal investment option without too many hiccups during the process.
You can start by having a look at this article, for example, to find the top real estate investment countries for 2019. They have a lot of potential for growth, first of all, and low chances of dropping anytime soon. That way, you can feel quite confident about your decision.
Spain is always an affordable and profitable choice but keep in mind that it can be tricky to rent your property out in some areas. Lanzarote, specifically, is a great city to invest in right now. It’s beautiful as well, of course, perfectly warm and sunny all year.
If you’d like to stay in about the same kind of area but Spain doesn’t interest you, there’s always Portugal, which is a great place for families. Just as sunny, beautiful, and with enough culture to keep you satisfied, the real estate prices of Portugal is quite affordable for foreign investors as well.
France is also a good country to invest in for foreigners as many regions are quite affordable. Yet, it’s not just about the money, though, is it? The lifestyle, nature, their culture – everything about France is tempting. Imagine having that feeling not just as a holiday experience but actually every day instead.
Feeling as secure as possible with your real estate choice is all about educating yourself. One way to feel as quite confident is, of course, to have a chat with a real estate agent in your country of choice. Make sure that they have experience with dealing with foreign investors, though, to ensure that they’ll be able to give the best possible advice to your particular situation.
While a real estate agent is important for when you’re still deciding on a property, a lawyer is alpha omega when you’ve made your decision. They should also know what they’re doing when it comes to helping investors with their paperwork for property abroad, though, and it would be even better if they were fluent in the language they speak in the country you’ve chosen.
It’s important that you never sign any documents that are written in a language you don’t understand, of course, and a lawyer to help you to understand everything will make it so much easier to make the right kind of decision.
Finding finance solutions for your property abroad
One of the biggest obstacles real estate investors find when looking to buy property overseas is, of course, the challenge of finding solutions to finance the project. While a bank at home would be happy to provide you with a mortgage as long as you have some capital to show and a steady income flow each month, banks overseas are a bit more hesitant.
To make matter even worse, it’s not always that easy to finance an overseas real estate project through a bank here at home. You’re not investing in the country they’re operating in, after all, which makes everything a bit more complicated.
This is not to say that it’s impossible, though, and it’s a good idea to have a chat with a couple of banks in your home country before you throw in the towel.
One option that a lot of people opt for is to finance a project overseas by using their current home as security. This means that you need to own a property here at home first, though, otherwise you’d not really have any security for them to use.
Some countries abroad will also rely heavily on bto which makes it a lot easier for foreign investors to get their properties financed. Read up on it before you decide on anything, first of all, and make sure that you’ve researched the area thoroughly as well before you sign up for anything final.
Finding, financing, and closing the deal when investing in property abroad is far from as difficult as it may seem. Just make sure that you have a professional or two to follow you closely during the entire process and you’ll be good to go.