A Comprehensive Guide to an Investment in Overseas Real Estate Market

Sujan Afi S

Introduction

Investing in real estate overseas is becoming popular day by day. The disappointing condition of the Indian real estate market provokes Indian investors to invest in overseas real estate. It can be a good option for you to invest in real estate overseas for diversifying your investment. You have chances to make a good profit while investing in overseas real estate properties. Let us see what we should consider before investing in overseas real estate. 

Factors for investing in overseas real estate property

Can you feel easy in a foreign land? Can you be just yourself in an unknown place? No. Never. You might hesitate and become self-conscious. Things will not be too easy for you to handle. Likewise, investing in overseas real estate is not the same as investing in the real estate of your motherland! 

The process of investing in overseas real estate is quite complex. You need to consider several factors while investing in overseas real estate property so that your investment turns out into a profitable one. There are many factors you should consider while investing in overseas real estate property. Let’s dive deep and know the key factors.

  1. Location of property: The location is important in any kind of investment in the real estate sector whether it is home country or overseas country. Hence, try to make appropriate research on the location of your destination property before you invest.
  1. Arrangement of mortgage: It is preferable to go for the cash investment while considering overseas real estate investment. It is quite difficult to manage mortgages for overseas real estate investment. There are mainly two ways to manage mortgage for overseas real estate investment such as –
  • Arranging overseas mortgage from a local bank
  • Arranging mortgage from an overseas lender
  1. Appoint a perfect lawyer: While you are wishing to invest in the overseas real estate market then you need to appoint a perfect lawyer who has sufficient knowledge about the laws of real estate investment. He/she might give you the needed guidance and might save you from being cheated. 
  2. Hire a local guy in the destination country: To turn your investment into a profitable one you can hire a local guy in the destination country. But that person must know the local real estate market. 
  3. Visiting the property: Before taking the final decision of investment you should visit the area multiple times so that you can understand the overall location of your property and its condition. Better to work hard before than regretting later on! 
  4. Evaluate the local political situation of the destination country: Before investment, you need to evaluate carefully the local political situation of the destination country. Only invest in the overseas country where there is political stability. Further, avoid those countries where the risks of political instability are higher.
  5. Buy only what you see: You should only buy the property you see. Don’t go for investing in a property that you have not seen or enquired about well.
  6. Overcome the barrier of language: There are two ways to overcome the barrier of a foreign language. One is to learn the language of the destination country. Another way is to appoint a good translator. You can do any one of them. However, try to learn the foreign tongue to have a better hold in everything. 
  7. Fractional ownership: It is a good option for you to go for fractional ownership, especially if you are new to investing in a real estate overseas market. It reduces the chances of being cheated. Further, you can discuss with your partners before the investment. It is better to choose a partner(s) from the destination country while going for fractional ownership to minimise the risk of investment.
  8. Appoint a currency specialist: To know the details of the stability of the foreign currency of your destination country you may appoint a currency specialist.

Process of investing real estate property abroad

The process of investing overseas real estate property is discussed below:

  1. Searching a property
  2. Search for a good realtor: After searching your property you need a good realtor of the destination country who can help you with purchasing the property. 
  3.  Make sure that your budget takes all the details into account: There are several associating costs while buying a real estate property abroad (like title search, registration fees, legal fees, tax fees etc.). Therefore, you should be clear about their amount before the final investment to be sure that your budget takes all the details into account.
  4. Decide the way of financing: Decide whether you want to purchase the property in cash or any other way. You also need to decide the payment ways like the number of stages of payment etc.
  5. Evaluate the property in detail: You should be clear about all details of your property. 
  6. Final paperwork and investment: After the final evaluation of the property, you should go for the final paperwork and investment in ultimate care. Make sure everything is mentioned in the final deal. You can go for payment after ensuring all the details in the paperwork.

Conclusion

Investment in the overseas real estate sector is quite complex. The most important thing is to ensure that the transaction is conducted in a way that protects your rights over your property. To make the process smoothly you should follow the above-mentioned points and discuss them with real estate professionals. You can have a detailed discussion with the experts of Roodland India. Our professionals understand your needs and demands and suggest the best for you. Drop a mail at info@roodland.com to book an appointment at the earliest possible date.

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