When it comes to overseas property investment, due diligence is key. Without it, you could encounter complications, particularly when it comes to the purchasing stage. Therefore, to minimise these or avoid them altogether, it's advisable to carefully research into the market's track record, whether it be well-established or forecast as a potential hotspot. Both have their benefits and disadvantages so it's important to find out as much possible before taking the plunge.
Investing in an established market of course has its pluses, but even the best-known hotspots require some close attention. For example, factors such as capital appreciation and rental yields can vary greatly, depending on the location so don't focus on just one area – look around and make comparisons.
If the area you are considering is a popular tourism hotspot, think about what's around. Is there an airport situated nearby? What about amenities like supermarkets, restaurants and medical centres? All these things will have a huge impact on the return from your overseas property investments.
The infrastructure of an area will also play an important part in whether or not a location is worth investing in. For example, if good road networks and reliable, regular public transport services are already in place, this is an excellent start. Also consider the natural surroundings of an area- are there sea views? Is it situated in a picturesque mountain location? Perhaps there are skiing facilities and golf courses nearby. All these factors have the power to boost the price of international investment property.
The same applies when you are looking for an overseas investment property in an up-and-coming market. However, a little more due diligence is required. Do your homework - take a look at the location's past and present economic position. Has it grown? Is there potential for more growth? GDP, unemployment and inflation statistics are good indicators.
If other foreign investors are becoming interested in the area, this is a good sign, as with them, they'll bring an increase in wealth, work and often the funds for infrastructure improvements. This in turn can lead to good rental opportunities (particularly if the area does not currently boast high quality rental accommodation), as well as good resale opportunities.
Whether you have your heart set on buying overseas investment property in an already established market or want to focus on a potential hotspot, it's important to make sure you don't lose sight of what you expect from your investment.
Reputable international real estate companies can take a lot of the legwork out of seeking the best overseas investment properties to suit your particular requirements. They will give you informed property investment advice and iron out any questions or concerns you may have about making a property investment overseas.
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.