TIPS FOR INVESTING ABROAD IN REAL ESTATE

It´s a cloudy evening in paradise. Tulum, Mexico, 77ºF … The Mayan Riviera gets deep into your senses. It´s uniqueness is almost based in it´s diversity. That got us thinking about all those people who come from all around the world and spend a week, a month, a lifetime in this spot of the planet… and how a place like this can really change a person´s perspective on a lot of things, as it did to us.

Tulum is where diversity braces diversity. As real estate agents, we have seen people from all over the world leave everything behind and settle here. We have dealt with investors with different profiles, a lot of them who take the best of both worlds and enjoy paradise on their free times while using saving strategies based on capital value of properties, rental incomes and lower cost of living at the same time. There are a lot of reasons behind every decision, but mainly, whether it´s Tulum, Barcelona or Timbuctu, there are things to consider when investing on a property abroad.

We thought of five basic tips that can help you know if buying away from home is the kind of thing for you. Here they are:

1. Lifestyle oriented location.

Nowadays, a great location is the one that suits your lifestyle and when that location is abroad, that includes travel time and cost to get there, infrastructure provided by the foreign country, services that you need or may need while enjoying your new place… so by all means it has to work for you. Imagine. Perhaps you do not like long trips and you invest in a property that takes a 10 hour trip to get there. You want to spend your weekends there. Getting there may be an inconvenience to you. Search for a location that is convenient for your lifestyle and habits.

2. It´s about the law.

Every real estate agent who offers a product which is targeted to people from foreign countries should know the basic laws that rule the acquisition of property and how it applies to them. Specific laws may apply in different parts of a single country. Every country has different criteria for foreign investors that may turn the notch to one side or another. Be sure to ask your real estate agent how the law works, so you can find certainty and make it work on your behalf.



2. It´s about the law.

Every real estate agent who offers a product which is targeted to people from foreign countries should know the basic laws that rule the acquisition of property and how it applies to them. Specific laws may apply in different parts of a single country. Every country has different criteria for foreign investors that may turn the notch to one side or another. Be sure to ask your real estate agent how the law works, so you can find certainty and make it work on your behalf.

3. Consider scouting trips as part of your investment.

Standing inside and walking through a property you have pre-selected as a choice will give you a complete perspective of the whole deal. Take your time. Pre-select your top choices and visit them. If none fits all your needs, be sure to have time to see your second choices. Making the right choice is crucial. This IS actually what you, a friend or a guest from a vacation rental WILL experience. It will give you accurate timings to destinations, point of interest, climate conditions of the property, method of construction of the building, water pressure, detailed inspection of furniture or appliances, orientation and the general vibe the place gives you and the people you are dealing with.



4. Work with professionals.

Real estate has been a growing activity all around the world for quite some time now. Everyday more people join the market, nevertheless, you NEED to work with proved professionals. Find settled local real estate offices that offer you clear and professional service. Basic good real estate is about complete and clear information and delivering what is promised. No hidden vices, no small letters or warrantees supported just by handshake deals. Working with professionals makes a big difference on your investing experience away from home and gives you the support of a local ally.

5. More bucks for your dollars.

Some investors find attractive a country which has a weaker economy than their home land. Why? Simple. Their acquisition power on everyday life grows immediately. Everything is cheaper most of the times. The cost of living, taxes, services and products. Everything. That means more money to spend or to save for other investments. Places with big tourist affluence are attractive since that market demands them. With high demand comes higher pricing and that means business. The cost of actually living there, still, remains low and can be much more sustainable for longer periods of time.

As an extra tip, enjoy the whole experience. If you are thinking in investing abroad, do it in a place that you like and fully enjoy, life is just one and living it at the most is an uncommon asset these days. Have fun while doing whatever you do always.

Best of business to you all.