Is Cheap Property Abroad a Good Investment in 2016?

Investing in cheap property abroad

Barcelona, Spain, offers many cheap properties in 2016

Advances in technology and communications have enabled us to do some fantastic things that just a decade ago were unthinkable. Online resources allow us to do so many activities including earning a living; and also allow us to trade in commodities such as bonds, company stock and real estate.

We are now able to purchase properties from around the world without leaving the comfort of our homes. I was able to sell my UK home fast last year without leaving home by using Therefore we can profit from many transactions from almost any location on the planet.

To trade successfully in property, you need to have a certain amount of knowledge as successful real estate investing is not just about finding a low-cost property. You have to be aware of the housing market situation in the country where you are purchasing, and also know if you will be expected to pay taxes in the country – and how much you will pay above and over the cost price of the property during the purchase process.

If purchasing a cheap property in a country where the economy is depressed, be aware that it could be some time before you are able to sell the property at a profit or indeed sell it at all. For example there are many great properties for sale in Spain at the moment at a fraction of the price they were being sold for in 2007. However, the property market is extremely slow and if you were to try to resell your purchase you could be disappointed. Having said that, such situations are perfect for those who wish to use the property as a holiday home or as a possible source of rental income.

Buying a property at a low price in countries like Spain, Greece or Italy in 2014 when prices are still low, should be seen as a long term investment. Do not expect to get your money back with an additional profits in a matter of months or even a few years; but those who are prepared to sit the slump out should see a nice return on their investment within several years to a decade – it is a case of being patient.