It’s a well known fact that real estate property assets held for the medium to long term make solid additions to an overall investment portfolio and that our home is often our number one asset in terms of its value…which is why there has been a steady increase in the number of people around the world considering investing in property.
General media reports relating to investing in property tend to focus on how to afford a given property, which countries have developing real estate economies and where most buyers are headed this year in search of the lowest cost, highest appreciating property assets. But few if any focus on how an investor can actually make money from a given property market.
Questions such as ‘can you make money from tourism if you buy in the Czech Republic’, ‘what about local demand for housing in The Ukraine’, ‘is the government going to make buying easier now Romania and Bulgaria are in the EU’ and ‘will this mean more local buyers want resale property stock’ are never raised when really, these are the first and most important questions an investor should be asking!
After all, it’s all very well reading online that prices for properties for sale in Dubai have risen dramatically year on year since an announcement was made that foreigners can own freehold property assets in the emirate and then quickly hunting out some real estate that you can afford to buy and hoping to reap dividends – but did you know that there are infrastructure problems now affecting Dubai and lowering the appeal of property in the emirate and that questions about affordability are starting to be asked, suggesting properties in some areas are over priced?
You see, it’s all very well us wanting to invest in property and the media writing in general terms about all these random nations around the world where there is supposedly the potential to make a fortune from real estate – but how do we actually go about deciding whether there is a target client base likely to demand our property after we have invested in it?
Potential property investors not only have to do their due diligence on which countries have an active real estate marketplace but they need to determine if these countries offer them political and economic stability, the right to own freehold real estate and the right to take profits derived from property out of the country. Research has to be done relating to real estate taxation, tax on rental income and tax on capital gains, and even more importantly than this, a potential investor has to look at a country’s property market and determine how they can profit from it.
Is it right to buy to let, is it wise to buy to rent to tourists, should one be buying up rundown stock and renovating for resale or buying off plan assets and flipping them upon completion? These are the questions an investor needs to ask if they are to find the best real estate property investment potential around the world.