Generally an overseas property investor will often be drawn to opportunities in new emerging markets which can be exciting, as the level of capital growth rates can be astronomical and the property purchase price low.
We know the idea is for minimal outlay, maximum return!!
This is a fantastic concept as this is where a lot of investors made their substantial gains in previous years, as the product could be flipped at completion stage. To do this now, you have to be a real savvy investor or just damn lucky.
Remember, the potential gains on an overseas property will only materialise when you sell, if you cant sell, there is no profit, be prepared to weather the storm.
Think about it like this, a overseas property in an emerging market that has doubled in value is only worth that if you can find a buyer with the capital who can afford the purchase, which usually takes out of the equation the local market.
If you think this is too much of a gamble there is another option however. This is to find an area where rental potential is strong and the region has already got a good track record of yield success, with also the steady capital growth to take in consideration.
OK capital growth will not as appealing as in an emerging market but, at least you have the security of the rental, which a property being made self sufficient is what I would call a good solid investment.
I'm not saying either is right or wrong, its horses for courses. There are all types of overseas property regions out there that suit all different investment criteria, its finding the right one that suits your business model.
When we start to look at rental regions there are many factors to take into consideration, the obvious is established areas, advanced infrastructure, a transparent tax and legal system, look at the type of person that you will be renting to, the strength of the economy, large corporate comapnies who operate in the area.
When speaking to a rental agent prior to your purchase, ask them if you can see live statistics of yields that investors are already achieving, this will give you a good indication to the type of property to purchase and the strength of your return. Try to find out whether it is a buyers or sellers market, you have to also research your exit strategies for when the time comes and you need to re sell.
What you will find is that metropolitan cities will always have a higher demand for long term lets, out weighing the supply, this always gives you a solid market.
The other end of the scale you have student accommodation, these opportunities are becoming very attractive for the buy to let investor, these can be purchased off plan like traditional investments and generally will offer great returns on investment.
However its not all plain sailing as you have to consider the management of the investment when being the other side of the world, make sure you employ a pro active and trustworthy management agent, who will cater for your needs but also that of the tenant.
Its all about research, this has to be done before you take the plunge and commit.
Investing should be fun, not taxing, if it doesn't feel right, if you are not 100% convinced, walk away and say "no thanks".
If your shroud enough and patient enough you will find the country, region and investment thats for you.
Jigsaw Overseas Team
www.jigsawoverseasproperty.com
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