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Today’s post is a collaborative post written by fellow S&S reader, Samantha. She’s got some great tips for investing in real estate in another country. Check it out!

How to Invest in Property Abroad

Real estate investments abroad can be quite lucrative. To some, it’s a way to achieve their dreams of retiring abroad when the time is ripe – to others, it’s the quickest way of getting a foot in the real estate market.

While there are many advantages to buying property abroad, there are also a lot of pitfalls and you don’t want to go through the process without being completely up to date on how to avoid them.

Here is a simple guide to why you should invest in real estate abroad as well as how you’ll be able to do it. That way, you’re a bit more prepared for the challenges and won’t be taken by surprise when you’re halfway through the investment process.

First: Why buy property abroad?

Sure, there are many options for investing in real estate in your home country that are probably lucrative enough.

Depending on who you ask, however, people will have different reasons to why they chose to spend their money on a house or apartment overseas; it may be a bit cheaper or it could be a really good investment if you’re willing to sit on the property for a while.

You could make a lot of money of it even if you don’t want to sell it, though. By renting it out to holiday-goers, for example, you might find that you’re able to make a lot of money off it during the high season.

Make sure that you’ve read up on the rules and regulations around foreigners renting out real estate, by the way, as some countries that rely heavily on tourism don’t take kindly to foreign investors stealing all of their tourists.

This is the number one rule to everything when it comes to buying property abroad, in general; read up on the market, understand the rules, and you won’t end up regretting our investment later.

Research the area before investing

It may seem obvious, but the real estate market in the country you have your eyes on may not be the same as the real estate market here at home. This goes beyond researching the general economy and the trends of the country, though, as you need to take a long look at the individual areas and neighborhoods as well.

Search for Penang house for sale, for example, and continue to different real estate sites for the different countries you’re considering. This one of the best ways to understanding the local market; just scroll through the real estate sites and consider getting in touch with a real estate agent that has expertise in your country of choice as well.

They will be able to point you in the right direction in terms of which neighbourhoods you may want to invest in – and which ones you’re better off without.

Even if the city or the country is on the rise in terms of real estate, you may still end up investing in an area that is less than lucrative. On the other hand, you may be able to spot the golden neighbourhood in a country that might not be your first choice of real estate investment – and, if you’re in it for the profit, this could be one of the best investments you could make.

Researching the real estate market is therefore the key to making a good decision. Start by having a look at this article for some of the best countries to buy property in, at the moment, and continue to do some in-depth research on the one you prefer.

Keep in mind that these are just predictions, though, and you’ll be even better off if you manage to have a chat with someone who has already invested in the country or someone who is native to it. That way, you can get an insider’s perspective as well and may feel slightly more confident about your decision.

Call a lawyer

If you have decided on a country and even found a property that you might want to invest in, it’s an excellent idea to call a lawyer for a chat. Try to find one that has expertise in the country and that is able to speak both languages – the language of the country you’re investing in as well as your own, that is.

That way, you’ll be able to understand everything in the contract and have someone to rely on in terms of not being scammed by the sellers abroad. Make sure that you understand each and every document you sign as well, of course, and translate them to English so that you know that you’re not being taken advantage of.

You should talk to the lawyer about what you’d like to do with the property once it’s yours as well, by the way. If you would like to rent it out, for example, you need to know that you’re allowed to do so before you buy it.

As mentioned above, many countries block foreigners from renting out their apartments and holiday houses so that their tourists will spend money on hotels instead. It makes sense, though, and especially if the country sees tourism as one of their major sources of income.

Similarly, you should talk to the lawyer about your options in case you want to live there for more than just a couple of months per year. What type of visa should you get, are you able to get a permanent residency, and how do you proceed with this?

These are all questions that your lawyer should be able to answer. Now that you’ve covered all of this, you just need to get financing for the property – and then you can call yourself the proud owner of real estate abroad.