Overseas investment property - rental properties abroad
Those entering the buy-to-let market for properties abroad can be divided into two categories. Firstly, there are those who hope to live in the property for at least part of the year and rent it out at other times. Secondly, there are those who buy properties abroad purely as an investment overseas.
Overseas investment property has grown in popularity in recent years as investors have turned away from the stock market, believing properties abroad offer better returns.
Buyers of properties abroad as an investment overseas
Pure investors are normally experienced in overseas investment property and have a good idea what to expect from rental properties abroad. Novice buyers, on the other hand, may harbour unrealistic ambitions about overseas investment property.
This means they are dealing in an industry they know little about and are exposed to risks they are unaware of. Property is a long-term investment and not a get-rich-quick scheme enabling you to make millions in a short space of time.
The market for rental properties abroad
The potential for rental properties abroad depends greatly upon where you are buying. Studying the market in a particular country is a must and you should consider:
- Where the up-and-coming locations are for overseas investment property.
- What the rental incomes are like for different property types and how this compares to the costs of purchasing properties abroad.
- Which types of property are in most demand as holiday rentals and their potential as an investment overseas.
Other points to note about overseas investment property to let
Large cities very often have a shortage of rental accommodation which may give you some extra leverage when setting the rent you charge for properties abroad. Looking towards cities for your investment abroad means more opportunity for long-term rents providing a regular income. Urban properties abroad can often be more expensive than rural ones but have a proven track record of good yields and capital growth.
Properties abroad in close proximity to golf courses, ski resorts and other similar facilities may attract higher rents but seasonal properties can be left lying empty after peak season.
Rental yields vary enormously, even within towns, and this is just one factor you must take into account when weighing up a potential investment abroad. Other points you must consider when buying overseas investment property are demand, ease of resale, marketing, insurance, tax and maintenance.
Managing your investment abroad
Our property management service will help to take the hassle out of managing your bookings. Customers can book and pay online with instant quotes and instant availability checking. We will notify you each time you get a new booking and once you choose to accept the booking, our robot secretary will take care of the rest.
Rental properties abroad are currently performing exceptionally well in many areas. However, this is not the case in every country so you must carefully weigh up the pros and cons of buying a particular property in a particular area. Overseas investment property offers some fantastic opportunities for clever investors but there are also pitfalls which novices may fall victim to when making their first investment abroad.
