Buying property abroad for investment purposes is not the same as choosing a holiday home.
One of the primary concerns of buying property abroad that many first time investors have is how to purchase at, or below, market value. The concept behind this is very simple – your profit is determined not just by how much you earn, but how much you spend at the beginning.
This might seem quite an obvious statement, but it is one which often receives less attention than it deserves. Everyone looks at the future, yet have you paid enough attention to the current value of the property, and ways in which it can be reduced in price?
Buying property overseas at or below market value is a secret that the most successful international property investors are loathe to share.
Key Factors In Buying Property Abroad:
- Know the local market of the property
- Shop wisely, and look for discounted deals
- Negotiate on the final price
But is buying property abroad below market value still possible? Very much so! Actually, it’s one of the most effective means of improving your earnings potential or investment return in the future.
One way of obtaining property abroad at below market value could be by purchasing repossessed property. In this case your contacts within the local community and at the banks would be a prime consideration. Many of the properties involved are relatively new, with a good number being newly built. Knowledgeable international property investors research carefully and invest strategically.
These investors looking to buy property abroad take into account many factors, but sentiment isn’t one of them. It’s fair to say that the investor who falls in love with the properties they purchase never becomes quite such a successful property money maker. It isn’t so important for you to love the property, since it won’t be you who lives there. As long as you can buy it cheap, rent it at a good price and sell it in the future for a good profit – what else is there to consider?