It is absolutely natural to dream of investing in property abroad. Granted, when most of us picture ourselves buying these kinds of properties, we only see that beautiful beach house where you and your family can have elaborate holiday stays when escaping the winter in your home country all the while renting it out to holidaymakers when you are not in town. Some even envision a quaint yet cozy ski chalet for rent.
While these are all grand ideas that make you feel good, it is imperative to also strictly think of it in terms of returns. Do you want a property that will only give you a little back when it comes to hard earned ROI? Or do you want something that will make financial sense? The following three remote locations represent the perfect blend of properties that will bring in great income as well as those that can and will serve as part-time holiday stay locations for you and the family.
When property investment Gurus like Rick Otton invests in a property abroad, you know something’s cooking. As things stand right now, Spain has one of the most inviting real estate markets in the world. According to studies conducted by the OECD (Organisation for Economic Development) Spain’s property market is currently undervalued by up to 26%. This is mainly due to what they termed as ‘oversupply in the market’. There are banks in Spain now that are willing to offer foreign investors mortgages that go up to 113% of the property purchase price.
If for no other reason at all, you should seriously consider buying property in Spain because the prices are currently at rock bottom and the market is poised to bounce back as time goes on.
Plus, Spain is a generally gorgeous country. Holiday homes do really well in such locations.
One of the biggest factors that should go into your decision-making process when it comes to investing in property abroad, and really anywhere else, should be how well poised that market is to increase in value. Statistics show that the real estate market in Turkey as shown an increase of 18.9% in growth since the property crisis of 2008. This is mostly because Turkey has seen a strong increase in foreign investments, a slowdown in construction and an expansion of the population. Numbers suggest that this growth is set to continue. Investing in property here would be a wise choice for long-term real estate investors.
Yet another factor to look at is the kind of regulations set forth by the local Governments at the desired locations. Cities such as Stockholm, Sweden have very strict planning and building regimes, which suggest that the demand for housing will soon outstrip the supply. When this happens, housing prices can only go up. If you can manage it, buying property in such cities will give you the best chances of seeing great returns on your investment.
When thinking about investing in property remotely, you should take a great number of factors into consideration. Think of the supporting infrastructure such as transport, electricity, schools and other amenities. The availability of these things will give you the best indication as to whether or not your property will always have tenants or whether or not it will only serve as a rental property for holiday goers.