• About Us
  • Contact Us
  • Privacy Policy
  • Terms
  • Unsubscribe
No Result
View All Result
Live and Invest Overseas
FREE REPORT
BEST PLACES TO RETIRE
*No spam: We will NEVER give your email address to anyone else.
  • HOME
  • COUNTRIES
    • Top Destinations
      • Portugal
      • Panama
      • Belize
      • France
      • Colombia
      • Dominican Republic
      • Thailand
      • Mexico
      • Spain
      • Argentina
    • Browse All Countries
    • Best For
      • Retire Overseas Index
      • Health Care
      • Cost of Living
      • Investing in Real Estate
      • Editor’s Picks For Retirement
      • Establishing Residency
      • Starting an Online Business
      • Single Women
      • Playing Golf
  • BUDGETS
    • Super Cheap ($)
      • Cuenca, Ecuador
      • Chiang Mai, Thailand
      • The Philippines
      • Las Tablas, Panama
      • Granada, Nicaragua
    • Cheap ($$)
      • Algarve, Portugal
      • Medellin, Colombia
      • Boquete, Panama
      • Carcassone, France
      • Buenos Aires, Argentina
    • Affordable ($$$)
      • Abruzzo, Italy
      • Barcelona, Spain
      • Las Terrenas, Dominican Republic
      • Puerto Vallarta, Mexico
      • Costa de Oro, Uruguay
    • Luxury On A Budget ($$$$)
      • Ambergris Caye, Belize
      • Paris, France
      • Panama City Beach Area
  • Real Estate
  • ARCHIVES
    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore Diversification
    • Our Latest On Coronavirus ⚠️
  • Making Money
    • International Real Estate
    • Banking
    • Employment
    • Investing
  • CONFERENCES
  • BOOKSTORE
Live and Invest Overseas
  • HOME
  • COUNTRIES
    • Top Destinations
      • Portugal
      • Panama
      • Belize
      • France
      • Colombia
      • Dominican Republic
      • Thailand
      • Mexico
      • Spain
      • Argentina
    • Browse All Countries
    • Best For
      • Retire Overseas Index
      • Health Care
      • Cost of Living
      • Investing in Real Estate
      • Editor’s Picks For Retirement
      • Establishing Residency
      • Starting an Online Business
      • Single Women
      • Playing Golf
  • BUDGETS
    • Super Cheap ($)
      • Cuenca, Ecuador
      • Chiang Mai, Thailand
      • The Philippines
      • Las Tablas, Panama
      • Granada, Nicaragua
    • Cheap ($$)
      • Algarve, Portugal
      • Medellin, Colombia
      • Boquete, Panama
      • Carcassone, France
      • Buenos Aires, Argentina
    • Affordable ($$$)
      • Abruzzo, Italy
      • Barcelona, Spain
      • Las Terrenas, Dominican Republic
      • Puerto Vallarta, Mexico
      • Costa de Oro, Uruguay
    • Luxury On A Budget ($$$$)
      • Ambergris Caye, Belize
      • Paris, France
      • Panama City Beach Area
  • Real Estate
  • ARCHIVES
    • Living & Retiring Overseas
    • Raising A Family Abroad
    • Foreign Residency & Citizenship
    • Offshore Diversification
    • Our Latest On Coronavirus ⚠️
  • Making Money
    • International Real Estate
    • Banking
    • Employment
    • Investing
  • CONFERENCES
  • BOOKSTORE
No Result
View All Result
Live and Invest Overseas
No Result
View All Result
Home Investing

Global Property Investing

Live And Invest Overseas by Live And Invest Overseas
Aug 06, 2010
in Investing
0
flags from 25 different countries against a blue sky
209
SHARES
3k
VIEWS
Share on FacebookShare on Twitter

What You Need To Know Before Making Your First Foreign Real Estate Purchase

Down markets worldwide continue to create interesting buy opportunities for both personal use and investment.

But invest in a piece of real estate in another country? What should you buy and where? These questions can seem intimidating if you’re considering them for the first time.

Start by understanding why you’re buying–for investment or for personal use? 

The answer may not be clear-cut. And the best case is when you find a piece of real estate in a place where you want to spend time that also holds out the potential for an investment return (in the form of capital appreciation and/or a yield from rental).

State your objectives and exit strategy expectations clearly for yourself and for anyone else buying with you. Every decision you make related to the eventual purchase is affected by the property’s intended use. If you’re buying straight up for profit, every decision is based on the numbers. If you’re buying for personal use, even part-time, you’ll make your choices based on many things, including some that can’t be quantified in a spreadsheet.

Now that you understand why you’re buying, you need to decide where you want to buy what. I’ve been making specific “recession-market” recommendations in recent weeks (and will continue to do so). As you consider them (and the rest of the globe), think about:

  • The Path of Progress. This is a key factor when buying for investment but important if you’re buying a retirement or second home abroad, as well. What infrastructure improvements are planned? A new airport, new train station, new highway, new hospital, etc., can mean a new universe of potential buyers…which is good news if you’re buying as an investor looking to develop or to flip. These things, though, also translate to better living.
  • Inventory Supply and Demand. In Panama City, right now, for example, a glut of high-rise condos is coming online. These units were launched and sold pre-construction over the past two-plus years. Now they’re being delivered…and their volume is one reason Panama’s capital market continues to soften.
  • Costs of Acquisition. Remember that they go beyond agent commissions. Depending on the market, they can also include: legal fees, notary fees, registration fees, title insurance (we strongly recommend it), and transfer taxes (sometimes called “stamp duty”). In Ireland, for example, stamp duty can be as much as 9% of the purchase price.
  • Carrying Costs. Including: maintenance (a house on the beach requires a lot of it, for example); a caretaker (if you won’t be in residence full-time yourself); property taxes (not every country charges them, and, in some countries, they’re negligible); income taxes (if you’ll be earning rental income); capital gains taxes (when you eventually resell…again, not every country charges them); other local taxes; property management expense (you’ll need a property manager if you intend to rent); rental management expense (separate from property management and, again, necessary unless you’re going to manage all the details of your rental investment yourself…something I don’t advise); and homeowner’s association/building/condo fees.
  • Economic Outlook. Critical if you’re buying for investment, but you don’t want to ignore the market climate even if you’re buying purely for personal use. Markets move up and down…and then up again. At what point in this cycle is the market where you’re thinking about buying right now? In which direction is it moving?
  • Opportunity for Diversification. In terms of market, type of investment, type of property, and currency.

What kind of property should you be shopping for? Again, consider why you’re buying. If it’s for personal use, how much space do you need? If you intend to rent the place out when you’re not using it, understand what rents best on the local market. An apartment or a house? One bedroom or two? Think in terms of cost per square meter when making comparisons.

Where do you want to be? In the heart of downtown…or out in the country? On the coast or overlooking a river? In a gated community, a local neighborhood, or off on your own with undeveloped acres between you and your nearest neighbor? Consider climate, traffic patterns, transportation (where you settle determines whether you’ll need to invest in a car, for example), the convenience factor, and nearby amenities (shopping, restaurants, nightlife, parking, etc.).

Furnished or unfurnished? If you buy unfurnished, where and how will your source furniture?

Finally, what’s your budget? Everything follows from this. Have clear budget parameters in mind before you start shopping, and don’t forget to include the costs of closing, attorney review, other due diligence, and title insurance.

Lief Simon

P.S. If you aren’t already holding a sizeable portion of your assets outside your home country, I strongly recommend that you make this a priority agenda. And a portfolio of international real estate holdings should be an important part of your going-offshore strategy.

First, if you’re an American, real estate is one of two assets you can hold offshore without triggering a reporting requirement to Uncle Sam (the other is gold). The real estate you hold in another country is your own business.

Plus, it’s unseizable. How is the IRS going to take your condo in the Philippines?

You don’t have to be super rich to take up the idea of buying real estate offshore as a means of protecting your wealth. Opportunities to buy land, houses, and apartments, for both investment and personal use, exist at all price levels.

Building a portfolio of foreign real estate as part of a strategic offshore diversification agenda will be an important part of the program for the Emergency Offshore Summit we’re planning for December in Panama City. For this, we’re convening top tax, banking, asset-protection, and global investing experts from around the world.

Tags: 'Global Property Investing'basics of global property investing
Share84Tweet52
Previous Post

Driving Overseas

Next Post

Foolish Questions

Live And Invest Overseas

Live And Invest Overseas

Live and Invest Overseas is the world's savviest source for top opportunities to live better, retire in style, invest for profit, do business, and own real estate overseas. Established in 2008, the Live and Invest Overseas' editors and correspondents have more experience researching and reporting on top opportunities for living well, investing for profit, doing business, and owning real estate around the world than anyone else you'll find.

Related Posts

Thai style garden located in Royal Park Rajapruek, Chiang Mai, Thailand.
Investing

The Best Way To Beat Inflation For Retirees

by Kathleen Peddicord
June 26, 2022
0

Inflation is running at better than 8%... the greatest rate in more than 40 years. Your weekly grocery shop is...

Read more
People enjoying the clear blue waters and sandy beach in Bafra, Cyprus

Invest In Cyprus Now Then Sit Back And Wait For Your Return

June 20, 2022
Porto, Portugal

Where (And Why) Should You Buy Property Overseas In 2022?

June 15, 2022
Copacabana beach in Rio de Janeiro, Brazil.

The Top Countries With Favorable Exchange Rates

June 7, 2022
Panama City, Panama to the left and Medellin, Colombia to the right, comparison

Comparing Panama And Colombia: Living, Retiring, Investing

June 3, 2022
Alley of pink almond trees

The Ideal Farmland Investment For Those Who Want A Diversified Income

May 20, 2022
View from an aircraft of the coastline, beaches, seaport and the architecture of the city of Larnaca.

Lanarca, Cyprus: The Next First World Lifestyle And Investment Option

May 13, 2022
Next Post
Life & Retirement in our Live And Invest Overseas Conferences

Foolish Questions

Start Your New Life Today, Overseas

A world full of fun, adventure, and profit awaits! Sign up for our free daily e-letter, Overseas Opportunity Letter, and we’ll send you a FREE report on the 10 Best Places To Retire In Style Overseas Today.







LIOS Resources


  • New To LIOS
  • Ask An Expert
  • Media Center
  • Contact Us
  • FAQs

Quick Links


  • Best Places To Live
  • Best Places To Retire
  • Finding A Job Overseas
  • Real Estate

Sign up for our free daily e-letter, Overseas Opportunity Letter, and get your FREE report: The 10 Best Places To Retire Overseas In 2022

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms
  • Unsubscribe

© 2008-2021 - Live and Invest Overseas - All Rights Reserved.

No Result
View All Result
  • Home
  • Countries
  • Budgets
  • Archives
  • News
  • Events
  • Bookstore
  • Newsletters
  • About Us
  • Members Area
  • Contact Us

© 2008-2021 - Live and Invest Overseas - All Rights Reserved.

Sign up for FREE and learn how to live the good life on a modest budget, find bargain property, and more. Plus, check out our free report on the 10 BEST PLACES TO RETIRE.

RETIRE OVERSEAS AND LIVE LIKE ROYALTY

The World’s Best Places To Be In 2022?

Discover Them Here…