One of the best things about investing in property is that there are so many different directions in which you can choose to take your investment. While others may choose to buy and immediately rent out their property, others would rather buy it, renovate it and then sell it. Still, others would rather turn it into an HMO and so on and so on. Out of all these options, however, one of the most exciting forms of property investment is ‘remote investing’.
There are very many different locations on this planet that have excellent potential for returns as far as property investment is concerned. Many of these places are completely untapped and just waiting for the right kind of savvy investor. That might just be you. With that in mind, here are 3 tips for getting started with remote investing.
Consider the total costs
There is more to property investment than just buying the house. This is particularly true when you are dealing with foreign locations that may have different legislations as compared to your own. What kind of extra charges are involved?
- Would you have to pay huge amounts in taxes?
- What kind of expenses would you incur as far as repairs and maintenance are concerned?
- What about legal fees, licenses and permits
- Do they even allow foreigners to hold long term leases?
These are all things you have to consider. Your best bet is to hire two solicitors (one from your own location and another from the location of the property). This way, the two solicitors can iron out any legislative issues as far as your remote investment is concerned.
Look at the growth trends
Although you might be tempted to buy properties in locations that are experiencing an economic downturn (these properties are often dirt cheap), this strategy may not always work. Sometimes, it may take those local economies decades to bounce back. All this while you will be sitting on equity that could have gone towards doing you more good elsewhere. As a rule of thumb, you should always look to find a location that is within that ‘sweet remote investment spot’. The economy is not so strong to make the property prices outrageously high, but the location has a high potential for growth. It might be close to transportation, a market, university and so on.
Don’t listen to your heart, buy with your head
Just because you have always loved Ibiza doesn’t necessarily mean that it represents a viable remote investment opportunity for you (okay, maybe we shouldn’t have used Ibiza; that is an excellent location for remote investors). The point is, forget about your heart and your feelings. Invest with your head. Run the numbers, if they make financial sense, then sure, go right ahead and invest. If they don’t, it doesn’t matter how much you love the place, the numbers just don’t add up.
Remote investing takes a whole lot of courage, even more calculations and a spirit of adventure. It is by far one of the most exciting property investment avenues for those who have the stomach for it. With these 3 tips for getting started with remote investing, you can go right ahead and follow your dream.