Pro & Cons

Buying property abroad is a big decision

There are many factors to consider before you buy any property abroad. You do your homework whether it is for projected value increase or for an income stream as a vacation rental, doing your due diligence is important. Not all laws are the same. You must understand all the elements of your purchase or you will get burned.

What should I worry about when buying property abroad?

Buying property in another country that is different from your own is an excellent diversification strategy for your portfolio. However, there are some items that will need thorough research by you. Each country has there own unique set of laws and regulations when it comes to real estate. For example, not every country allows non residents to actually buy property. It imperative that you do your due diligence on that country’s legal system in order to remedy any problems that occur during the buying process. Although this may seem time consuming, it can not only save you money but keep yourself personally out of a legal jam.

Like with all real estate investing, location is key. Is the property located near amenities that will increase the value over time? Is the property going to be a rental?

One of the hardest barriers to overcome quickly is language. All negotiations, laws and contracts are done in the local language. Plan accordingly.

Buying real estate abroad can be quite profitable. You can find deep discount bargains in less developed real estate environments.

What to consider

Important things to consider when buying property abroad.

  • Are you comfortable with any communication barriers? 
  • Have you researched the local law and regulations?
  • Do you understand any current issues that may arise?
  • If you are borrowing are you receiving a favorable rate?
  • Do you have the ability to generate good rental income?
  • Will the property increase in value?
  • What are the tax implications that you may have?

Investing in real estate abroad is a great opportunity. With careful research and some street smarts, you can make out really big.

“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”

Andrew Carnegie, billionaire industrialist

“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.”

Anonymous • Quote of the Day