Guide To
Overseas Property Buying

If you're considering overseas property buying, you better have a clear goal.

What do I mean by this?

Well, you want to make sure that you get a higher rate of return on your capital than if you had invested it in the UK.

Many countries present potential investment opportunities, but you need to be aware of the advantages and dangers of overseas property buying.

I'm sure you are aware that property is the "in" thing!

The whole world has been bitten by the property bug. Everyone talks about the wonders of how much wealth can be accumulated through property investment — if you invest in the right country, that is.

Hopefully you're here because you're looking for information on overseas property buying.

Am I right?

But my guess is that you also have a gut feeling in your stomach that wherever there is money to be made, there are also corrupt people who'll try to take you for a ride.

So watch out for some of those fancy websites selling off plans in tourist markets and offering discounts with rental guarantees and inflated capital growths

If there is one thing I want you to remember before you get seduced by those websites, it's that the key to successful property investment – whether in the UK or abroad – is local affordability.

Yeap! it's all down to the locals

The most important question you should ask yourself is whether the local market can afford the property at its current price. And will they able to afford the property if the price rises by 20, 30, or even 40%?

The reason for asking this is simple: if you expect the price of the property to increase, then you need to ensure that buyers will be able to afford the higher price.

Therefore, I wouldn't purchase property as an investment in most of the UK because prices are currently too high for local affordability.

If you're considering overseas property buying, consider the same questions. Will locals in that area be able to afford the prices if they increase as anticipated?

You want to purchase property that is desirable to the locals, because it will be better maintained and present a more effective exit strategy.

Many investors who are considering overseas property buying make the mistake of purchasing the wrong kind of property, such as holiday homes, and targeting the wrong market.

There are exceptions to this, but if you target the UK tourist market in countries like Bulgaria or Cape Verde, you become more reliant on the UK economy than on local disposable incomes.

When considering overseas property buying, target emerging international markets where the local economy and local investment will grow, rather than relying on overseas investors.

Longer-term tenants generally present more lucrative investment opportunities than focusing on local tourist destinations.

Instead, purchase property in large cities where multinational companies are investing and there are many local buyers. Many European countries currently have a massive shortage of suitable housing for young people.

You can always find an exception, but I recommend choosing overseas property buying with strong local ownership and affordability.

Many of the larger European cities reveal remarkable growth potential and can provide a high return on investment and capital growth. When you factor in purchasing costs and leveraging options, you can earn annual returns of up to 30% by buying overseas property abroad!

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