Buying an investment property takes time and careful planning. Now imagine buying a property overseas in a country where the language and laws are completely different than yours. Aha! The plot thickens… If you are currently looking for a property in a foreign land then you are aware that this takes even more careful planning, since the last thing you want is to end up is getting taken advantage of in another country. Keep reading this article to help you avoid these problems.
The first thing you must do is to make absolutely sure that you understand all of the terms and conditions regarding the purchase of the property; Once you acquire it, if you manage the property correctly, this investment property will be working in your favor in no time. Before we get to that moment where everything works smoothly, you must know that overseas property owners and investors naturally will have doubts when buying in a foreign land.
The Country’s Government Stability
Problem: Buying a property in a politically and economically unstable country can affect your investment considerably. Difficulty finding tenants who can’t afford to pay the monthly fees or a decline in tourism may reduce considerably the chances of leasing to tourist and expats.
Solution: Learn about the country’s political and economic status before proceeding with any purchases. Investigate the real estate market’s history and its current political status. Speak to people that have already invested in the country to find out what the current real estate landscape is like.
Note: If you feel insecure about it, follow your instincts and leave. Chances are you will find something better that will make you feel more assured in the country and investment process.
Pro tip: A good indicator for government stability is foreign investment, if there are multinational companies investing in a country, that is definitely a good sign.
The Language Barrier
Problem: If you happen to be interested in a property located in a country that speaks a different language than yours, then you must find a way to learn the basics of it.
Note: Even though you may find people who speak the same language as you, you will notice that many of the legal documents regarding the property will be in that foreign language.
Solution: Before you arrive research certified translators that can translate the property’s legal documents to your language. An additional tip is to take them to a notary to make the translated documents official too.
Pro tip: If you really want to invest in a property overseas, hire a professional real estate company, they can help you in every step of the process.
- There is a solid chance that you may have to declare taxes from you overseas property in your country.
- Each country has different tax laws and a process to pay for them.
- Check your local tax policies regarding overseas properties and investigate the right way to register and pay for this asset.
- Study the tax laws of the country where you purchased the property so you don’t miss any payments or hire a real estate professional that can help you with tax procedures.
Complaints against the developers
Problem: Investing in a project constructed by developers that have had problems in the past. Developers like this may leave you with a low-quality property with endless problems or worse, with a project that is never finished in the first place.
Solution: Don’t let the beautiful images and the renders fool you. Before you commit to buying anything, take the time to research the developers and their history. If you find different red flags, let it go, no matter how beautiful it looks.
Pro Tip: Make a plan to see your property in person. After all, you are investing thousands of dollars in an asset, so take the time to be sure of what you’re buying.
Problem: Renting a property is always a bit of a risk, and you will always be hoping that your tenants are qualified and will not destroy your apartment. Overseas property owners generally have concerns regarding:
- Small Appliances: In many cases they go missing.
- Furniture: Status: General wear and tear or the furniture is overly damaged
- Major Appliances: Receive the proper maintenance.
Solution: Find a property manager that can make properly qualify future tenants, keep an eye on things that can be easily removed from the property for safe keeping, and make sure that the major appliances, plumbing, and electricity systems receive the proper care.
Pro Tip: Make sure you tell your property manager what are your no-goes for your property, be very clear with what you want, so they know what kind of tenant you’re willing to accept.
Having a property overseas requires as much work as a property that´s within your zip code, but it is not impossible if you know what you are doing or if you count on a Professional Real Estate Company. If you decide to hire professionals to help you go through the process, investigate them as well.
Check their reviews, the type of property’s they handle, their previous customers and everything you can find about them. Make sure you put your investment in good hands, with someone who will treat your property as though it is their own.