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Define your Goals in Order to The Right Overseas Property Investments

26 October 2016 One Comment

canstockphoto35958823If you are interested in building any sort of property portfolio, especially one that includes acquiring homes that outside of your usual country of residence, it is absolutely essential that you define your goals beforehand.

If you are searching for luxury property in France for example, it may be that you are a lifestyle investor and primarily want to acquire some outstanding homes in a great location, whereas buying specifically for an investment return, will often mean you are seeking a different type of property and location.

Both types of investment can offer solid returns if you make the right choices in the decision-making process, and if you decide what type of buyer you are.

Lifestyler or pure investor

In basic terms, investors will often fall into one of two distinct categories. They are the lifestylers who enjoy an affinity with a certain region or part of the world and want to own a property there, or they might be more of a pure investor, with a more hard-hearted approach to buying that is more focused on investment returns than anything else.

To make sure that you get the most out of your forays into the international property markets, it obviously makes sense to define your investment goals and decide what you actually want out of your purchase.

Quite clearly, buying a property that you can enjoy spending time at yourself during certain times of the year, requires a rather different mindset and approach than if you are simply looking to achieve some rental income as your primary goal.

Financial circumstances and goals might dictate your strategy

If you are relatively ambivalent about your investment goals, you might need to ask yourself a few pertinent questions about your current financial situation, what your retirement plans are and what your appetite towards risk is like.

Working out what level of annual income you need, if any, from your property investments and how long you can afford to keep your capital tied up, will help to clarify what sort of property you might be looking at, as well as what type of investor you are.

Risk appetite is also clearly an issue that you have to address. If you are someone who happily invests in emerging markets in search of high capital gains, that will obviously influence your outlook and attitude towards what type of property you want to buy.

If you are a far more cautious in your investment outlook, this will also be a strong influential factor in what type or property and location you are prepared to look at.

A way out

When you are buying any investment property, it is always just as important to have an exit strategy and hold a firm idea of how and when you will be moving on.

Many consider that the best approach is buy-to-hold, which often means holding on to the investment for about five years at least, and longer, if your investment objectives have not change in the interim period.

There are some good opportunities around for international property investors, especially when you know exactly what you are looking for from your investments.

Peter Hanson has worked in the real estate industry for many years in both the UK and parts of Europe. He writes about buying and investing in property, what’s happening in the the real estate industry and also tips for sellers to get more value out of their homes.

One Comment »

  • KN Gohar Green City said:

    Residences can be classified by, if, and how they are connected to neighbouring residences and land. Different types of housing tenure can be used for the same physical type. For example, connected residents might be owned by a single entity and leased out, or owned separately with an agreement covering the relationship between units and common areas and concerns.