Are you interested in purchasing property overseas in 2017? There are a few things you need to consider when going outside of your own country to buy property. You may face a few initial obstacles because buying overseas can cause some problems to arise.
As the global real estate market continues to thrive, we are seeing more people tapping into the Australian property market. The rental yield in 2016 was a healthy 5%.
We have 5 overseas property investment tips that you need to be aware of before you bite the bullet and make an overseas purchase in Australia. Let’s conquer your overseas property investment woes with one tip at a time:
Are you considering making an overseas property investment in Australia? If so, keep reading for 5 helpful tips that will set you up for success.
1. Purchase Your Investment Property in an Affordable Area
Currently, property prices are on the rise in popular areas like Sydney and even in Melbourne. In Sydney alone, the median house price is over $1 million dollars and its growth rate continues to flourish. The cost to borrow also continues to rise in these areas, so that means interest rates will also increase. Home loans are becoming more expensive in these two areas as time as shown.
- You may want to reconsider investing in places like Sydney and Melbourne and opt for a more reasonably priced location, like South East Queensland. Being strategic and more considered with your location choice will help you find the perfect place to make your investment cash flow better and last longer. We at Axon Property Group can provide you with overseas property investment mentoring if you need it.
Figuring out the location for your investment is important for you to focus on when it comes down to the financial aspect of investing. However, before you proceed with a property you also should discover what infrastructure exists in the region. Local attractions and sites are crucial to look for.
If you plan on renting your space out you should see how far away your property is from these amenities. If your property is close to the beach, for example, you may have better luck renting it out during the hot summer months. Location factors into your whether or not your investment will make you a successful long-term payoff.
- Is your property close to popular shops or restaurants? How far away is an airport from your property? What transport options are close-by? Is there medical facilities within a short drive? What type of schholing options are available? Location factors into your whether or not your investment will make you a successful long-term payoff.
2. Understand the Locals
If you are planning on doing international business, you will need to understand the language that is spoken. It’s important to talk with international agents (and interpreters!) and potential sellers in a clear, comprehensive manner.
- A suggestion that can make this process go a lot smoother would be to use a lawyer who can easily interpret what each party has to say in the matter of buying and selling a property.
Something else to consider about making an overseas investment is the exchange rate. For sales and transfers in another country, it’s very helpful if you obtain a Certificate of Importation that allows you to offset changes in currency. Another helpful tip is to open up a bank account in the country that you wish to purchase property in, that way you can easily pay your taxes and fees.
- Talking to someone known as a currency broker will also make the exchange process go efficiently. The exchange rate can impact the price of your property, how much monthly mortgage payments would be, and even how much money you can charge tenants for rent each month.
3. Know How to Keep Your Property Investment Safe
Once you decide on a property to invest in, consider investing in security. After paying hundreds of thousands of dollars on a new investment, you need to think about what can happen if you are not always there!
There are property management companies that are able to assist you if you are not in your home and you need it to be looked at. The property management employees can also stop by your property on a regular basis to ensure that it is being taken care of in the best way possible. Also, always install security screen on all windows and doors.
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4. Have a Back-Up Plan For Your Overseas Property Investment
You never know when the housing market in your foreign country will be declining, so establishing a backup plan can help you plan for the worst. Paying close attention to the global market will definitely keep you in the know when it comes to how your property is stacking up at any moment in time.
Follow the outlook for the market in the global economy to see if you need to sell your property in time to get back the money you put into your investment. The Australian property investment trends are continuing to rise in a positive direction for the time being, but that doesn’t mean a shift can’t happen.
5. Don’t Be Afraid to Ask For Help
Especially if you are a first-time property investor, you should seek additional help with your purchasing process to ensure that you are following all the right steps to owning your new property. We have dozens of targeted blog posts to cater to your real estate needs. Making an overseas property investment is something that you do not want to rush through and get over with quickly.
Our business caters to assisting people through their financial journey by exploring how we can expand your individual property portfolio. You can trust our professional opinion because of Robbie Turner, our Managing Director and Property Investment Coach. He is an ex-Army Officer with years of experience as a very successful property investor himself.
He has developed his own method to property investment that is called ‘The Commando Approach to Property Investing’, which he can discuss with you during a webinar.
When you are spending a lot of your hard-earned money on an investment, consider contacting a professional like Robbie Turner for advice on how to have the best experience when purchasing a foreign property.