3 Things to Consider when Investing in International Property

The recent boom in the global property market has been hard to ignore, and despite several warnings by economists it shows little sign of abating. Even with the UK market on the verge of forming a bubble, there are a number of international locations in Europe and beyond offering potential growth and huge financial returns to real estate investors. If you are new to the market and hoping to invest in overseas property, however, you will need adopt a clearly defined strategy and plan your activity prior to taking the plunge.

The recent boom in the global property market has been hard to ignore, and despite several warnings by economists it shows little sign of abating. Even with the UK market on the verge of forming a bubble, there are a number of international locations in Europe and beyond offering potential growth and huge financial returns to real estate investors. If you are new to the market and hoping to invest in overseas property, however, you will need adopt a clearly defined strategy and plan your activity prior to taking the plunge.

3 Key Considerations when Investing in International Real Estate

With this in mind, what are the three primary considerations that you should bear in mind before investing in overseas property? Consider the following ideas: –

1.The Impact of Economic Trends and Conflict

As any financial or stock market trader can testify, investment relies on far more than knowledge and ability. There is also a pressing need to account for external economic trends and political issues, as these can have an impact on individual assets and global financial markets. The same principle applies to real estate investment, as properties in certain countries may be susceptible to the threat of terrorism, political strife and sudden market decline. You need to consider these factors before making a move, as otherwise you may place your hard-earned capital at risk.

2. Property Market Fads and Short-term Developments

Over the last decade, the global property market has experienced a number of peaks and troughs that have been hard to predict. Many of these have also been localised in specific regions, with a select few markets having attracted a huge amount of investment only to crash due to a lack of sustainability or long-term foundations. This has happened in both Bulgaria and Cyprus since the Great Recession, so it is important to appraise your potential market wisely and pay attention to its historical performance over time.

3. Factor in Currency and Exchange Rates

On a final note, no reputable real estate investor can trade effectively without an understanding of exchange rates or the value of international currency. There are a number of tools that can enable you to gain an insight into the currency exchange market, with outlets such as Currencies Direct providing customers with access to conversion calculators and real-time pricing on a daily basis. This can not only help you to effectively time your deal, but also encourage you to get into the habit of factoring

Written by Julie Hanson

Julie is passionate about property – development, investment and portfolio planning. Along with husband Alec, Julie is actively building a property portfolio while helping others to do the same.

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