Have you ever considered turning one of your investments into a business? Many people like to retain control over the growth of their money. They want to personally nurture it and develop their investments into bigger and better returns. This is one of the reasons why so many of us like to get involved in crowdfunding for innovative startups! You don’t have to go down that route though. You could, instead, consider property. After all, we all need somewhere to live, and somewhere to stay on vacation.
When you consider property as an investment, you need to remember a few rules:
The location of the property matters — It needs to be in a desirable place.
The price of the property matters — Can you tell how much it costs and how much it could be worth?
The purpose of the property matters — You may want to buy it as a vacation let, but are you legally allowed to rent it out like that?
The only way you can be absolutely certain the property you’re interested in is a good investment is to have local knowledge. You need people on your side that can help navigate local laws and planning regulations. You’ll need someone local to manage repairs and maintenance, landscaping and cleaning. You also need someone who has plenty of property knowledge without a bias towards the seller!
Always start with the money. You may need a foreign exchange consultant to ensure you’re buying at the best time. If you don’t have all of the cash up front, you may also need to factor in any borrowing costs. Don’t forget that lawyers will be needed at home and abroad to see the sale through to completion. Finally, do your homework on the value of properties in the area. Find out what local tradespeople cost to bring your property up to standard to compete with the best.
If language is a barrier, you will have to put a lot of trust in the people you hire. Choose people that have recommendations and good reviews. The cheapest option isn’t always the best. When it comes to property, a mistake can be extremely costly. Do your due diligence and protect your investment.
Once the property is yours, you’ll need to begin marketing. As you’re not based in the country, you will need to make the most of social media and websites to promote your property. Consider carefully what you are offering. Define with clarity the type of person who would want it the most. Now you need to find those people. Which websites do they use? Which search terms should you include for your SEO? Which pictures of the property do they need to see the most?
When you’re buying overseas, it is always a good idea to see the property yourself. In fact, in many places, you are not legally permitted to buy without having been to the property. Spend that time finding the people that can help you the most. Check out the competition too! Will this property be the first of many in your international portfolio?