When you come into some cash, it can be tempting to invest money in stocks and shares. One of the best places you could put your money when you come into it is property. It’s a tangible asset that can also earn you money both in rental income and later, in sales. Entrepreneurs find a huge amount of success with their businesses, and so many seek to branch out of this and into property because of the potential for earnings. Your cash investment could mean the difference between a secure and comfortable lifestyle in retirement or simply playing the stocks. Buying property abroad, however, is an investment that you should absolutely consider.
Think of the market that is currently out there for holiday homes. Those who seek to purchase their own holiday home are often put off by the idea of rogue traders, a bad economy and even terrorism. Each of these are a risk to their investment, so it’s understandable that there would be doubts. There are companies out there such as Enness International that specialise in property bought for high net worth individuals and investment property abroad; meaning that you wouldn’t have to go it alone when it comes to purchasing your property abroad. There are some rules you should try to keep to when you decide to press ahead with your investment, and we’ve put them together for you in a way that makes it far easier to understand.
Location, Location, Location.
It may be really tempting to look at the latest markets that haven’t quite established themselves but look a little promising, but it would be better for an investment property to go for a neighbourhood that has already established itself in terms of safety. The reason for this for your first investment property is that you want to be able to earn money off your holiday home. This can be done far easier if there is already a proven rental income.
When you’re researching the countries that you wish to buy in, make sure that you check out the tax rules for each one. No two will be the same in terms of their VAT or stamp duty or equivalent to those, so be smart here. You should ideally get some advice from a tax advisor, so that you are on the right track.
There are only certain mortgages that allow you to rent your property out, so before you put pen to paper and sign off on that mortgage contract, make it clear that you wish to be able to rent out your property for the holiday season. The laws won’t always be the same as those you are used to, but your mortgage advisor should be able to explain this to you quite easily.
Watch The Money.
The exchange rates will vary from month to month, depending on the state of the economy. Be smart about when you choose to buy. If you buy when the exchange rate is rubbish, you could easily do yourself out of cash!
There are some properties that – strangely – get put up for sale without the title deeds. Make sure to check with your mortgage advisor about this. You’d be surprised how many people out their home up for sale without checking the title deeds are available!
If there is one thing you absolutely must never forget, it’s to get everything in writing. Conversations over the phone are easily lost in translation, and if you don’t get things in writing then you have no backup for when conversations with sellers go badly! It’s always best to cover yourself and have evidence for everything. Prevention is better than cure, after all.
Immerse Yourself Locally.
Before you go ahead and buy a home, chat to the locals. Get to know the local café owners and have some general chit-chat about the area itself. There’s only so much intel you’ll get from the sellers, so it’s good to have an actual insight to the area you’re going to buy from people who live there.
Your property investment doesn’t have to be a difficult pathway, as long as you follow the rules and get yourself as much feedback and intel as possible, you can purchase a new property with ease. The next bit? Well, that’s all about enjoying the investment you’ve made and reaping the reward of the new rental income you have acquired!