Having a property overseas can be a great way of diversifying your portfolio and investing in another country. It is also a fantastic real estate investment and one which will not only bring in rental yield but also double as a potential retirement home or second home as well as allowing you to learn far more about another culture than any other method. All in all, it can be an absolutely fantastic way of generating a second income. However, that being said managing a rental property overseas brings with it some unique challenges and so it is tremendously important to ensure you are informed, prepared and ready to invest your time, money and resources into this property.
In any property, there are a myriad of unexpected occurrences that could well occur, from a leaky pipe to paying the taxes.
In any property, there are a myriad of unexpected occurrences that could well occur, from a leaky pipe to paying the taxes. There will always be additional problems and expenses that can occur and, quite possibly, even potential problems you have yet to think about. In property management being proactive is simply not enough, you must also be reactive; ready to be on-site at a moment’s notice. Of course, this is not possible if you are in the UK and your property is overseas. Jumping on a plane and attempting an emergency commute is neither realistic nor practical. Instead, research a reliable rental manager who is accredited and trusted in the local community. You should expect to pay somewhere between 20% and 50% of your rental income so make sure you understand exactly what is available for that price and, more than anything, try and find a manager who speaks your language. In property management communication is key. If you are looking for a rental property manager we would recommend asking them if they offer:
Having a property overseas will undoubtedly bring with it a number of changes to your financial status. It is important that even before you purchase the property you sit down with an accountant who not only has an understanding of your own law but the law of the country you are choosing to invest in. Make sure to do some research and look into how the rental income from another property will affect your tax rights, insurance liability and premiums to make sure you are fully prepared for every financial eventuality. Often, individuals purchase properties without fully understanding the financial ramifications, so do your due diligence and make sure you are prepared.
Make sure to do your due diligence and understand precisely who your target audience is and their specific tastes. For example, if you are purchasing a property in a central business district and looking to target business people it is important to consider factors like a good desk, general area of workspace and fast internet connection. Conversely, if your area is more suburban you should look to see if your property is well connected by road and public transport and close to good schools. Having been careful and strategic in your plans there is no reason a property overseas can’t bring with it profit and significant rental yields. If you are interested in purchasing a property feel free to contact us on XX or drop us an email on XX XX.