It seems like since the beginning of time, man has been driven to own land. And whether you are buying a residential dream home to call your own or a high-tech commercial building, investing in property is a popular choice especially with the current economic climate. No doubt there is a strong incentive to put your money in bricks and mortar. Equity gains and rental income can often be far more reliable than other forms of investment.
For the novice investor, it is probably best to start locally. However, we live in a global economy and there is no shortage of opportunities across the world that could be considered.
Investing abroad is not something you may want to do on a whim. Like any investment it is important to study and make sound decisions. The following are just a few considerations when inching into the global market:
- Know the laws. Some investment property abroad will be governed by unfamiliar regulations. In France, for example, you might find yourself in a position to take advantage of the leaseback system, whereby your rental income will be backed by a government guarantee designed to attract investors like you to investment properties in France. Creative Choice Group, based in Florida, has significant experience investing in locations both in the US and abroad. Following the rules and understanding government policy will also help to avoid legal action or law suits that can tangle up projects for long periods of time wasting resources for you and your investment partners.
- Know the culture. It is important to understand the way people do business in the country you are investing in. Business protocols from continent to continent vary widely and studying local customs, practices and expectations will help thwart any unnecessary misstep as you pursue investment options.
- Local climate. Meeting code requirements for a specific region are important as well. There may be repair or maintenance restrictions that are guided by local agencies or government bodies. It is important to find partners in the area that can help outline expectations to keep projects on track and avoid fines or delays. Each location has their own set of challenges but also their own unique benefits.
- The Market. Knowing your way around the marketplace and the country you want to invest in is critical. Doing your homework on property valuations, tax benefits and financing options will facilitate faster success and greater overall returns. For example, if the marketplace is crowded, property can be extremely overpriced. This can make the rental market attractive. For example in Europe, 60% of the population rents, offering excellent prospects for buy-to-lease buildings or even larger, premium purchases.
Over the next few weeks I will discuss some specific approaches to investing abroad. These tips have helped my team grow over the last 20 years to a multi-national firm. From Etech Global Services in Texas to InfoCity in India, I have learned how to navigate international waters. I look forward to helping you dip your toe in the deep end … if you are ready.