What to Consider when Buying Foreign Properties

For most investors, buying foreign properties is an ultimate win-win situation!

While such an idea works well in theory, the reality may not be as simple as it sounds. Investing in foreign properties means spending thousands of dollars and taking a lot of processing time before fully owning a property. On top of that, there’s also the risk of the potential revenue of the project.

Another layer of challenge is how property purchases are now transacted online. Such a case means limitations in looking into the projects to assess their marketability and financial viability. Hence, before engaging in any form of real estate investment-related transactions, here are some essential things you must include in your checklist.

Personal Goal

An essential part of your purchase is first to set the preliminaries. By that, it means you must establish the objectives of your investment. Phuket has become a haven for tourists, retirees, and investors. Hence, whatever the intention of purchase is, there’s always room where you can fit in.

The first thing to consider is what your goal is. Consider whether your goal of investing is for business, pleasure, a combination of both, or perhaps, other reasons. Identifying the investment’s objective serves as a basis in assessing how much you are willing to risk in such an undertaking.

Financial Capacity

As a rule of thumb, you can’t be in the real estate industry without putting in the money. While it has become easier to purchase properties through buyer-friendly installment plans, it doesn’t mean that the project’s financial requirements are easy.

For instance, one needs to secure a downpayment of around 20% of the original property price. The remaining amount shall automatically in monthly installment. You have to note that your loan value must not exceed 30% of your monthly salary if you opt to pay through a mortgage.

On top of that, projects also require additional fees, including maintenance fees, insurances, utility bills, etc. Along this line, there may be an unprecedented payment that might come.  Thus, check whether your current credit capacity fits the property’s financial dues.

Project Marketability

An important feature to consider is the property’s location. While properties must be aesthetically viable, one should factor in their business potential. Think of how accessible it is to critical areas such as markets, public transit, and other essential commodities. For example, properties in Phuket do not only attract tourists due to the enticing vibe, but the province also offers high market value for its properties. You may seek assistance from a  reputable real estate partner to assess the logistics and other value-related aspects attached to the property’s location.

Besides the location’s business angle, go back to what you find convenient when purchasing properties for your leisure. Think of your property as a new form of sanctuary.

Potential Risks

Like in any business venture, potentials are inevitable. Suppose this happens, ensure that you have a strong legal team to look into the legal aspect of your purchase. Doing this protects your business from potential harm brought by illegal and fraudulent activities. Such gives you a relief that even if revenues might not come fast, your investment will surely reap its business outcomes in the years to come.

In the end, preparation is always half the battle. Hence, before you take that big leap, consider all these measures and start your property shopping online!