Overseas Property Investments - Why Knowing Housing Trends Can Make You Money
Overseas Property Investments - Why Knowing Housing Trends Can Make You Money
Overseas Property Investments are a portfolio diversification option that more and more savvy investors are considering. With the death of housing opportunities in the North American housing markets, those of us that want to continue within real estate investment are starting to look further afield. The fact that we live in a globalized world has meant that we can reside, earn and invest where we want to in a way that was not possible previously.
Real money is being made in emerging markets all over the world. Investors who got in on the early cycle in Panama have been looking at 200% profit and more, within a ridiculously quick turnaround period. Like any investment area overseas property investments require due diligence research and a close eye on the ball. Not a problem for us savvy investors!
Although investing overseas can seem overwhelming especially if this is your first dip into the pond outside North America, the same principles of domestic real estate investment can be applied, namely: trends, industry, transportation and immigration.
The four fundamentals of real estate deserve a bit of attention, so I'm going to split them into four articles! This time I'm going to look at how being on top of trends in your overseas property investment location can reduce risk and maximize profit.
Trends
Like any area of investment keeping on top of trends is a must. This is even more important when you are looking to invest in a sector, or location which is unfamiliar. This is why, after making the decision to diversify my investment portfolio, the first thing I did was start looking into trends.
There are a number of trends to be aware of, both from a country perspective and within the real estate market itself. Real estate is just one sector within the wider economy so the first step is to start monitoring regional and country specific growth. Massive growth in a country can be a great indicator that individual sectors are flourishing or about to expand.
I have been monitoring the Caribbean region for the last year and have seen some great growth figures; this caused me to look closer at some of the housing markets within countries like Honduras, Costa Rica and Cuba. When you have established that a country has potential, it's time to start looking at the state of the housing market.
Questions to ask yourself when you get to this level could be:
Is it a buyer's market?
Are there established real estate services?
How many new buyers are entering the market?
How much foreign investment is taking place?
How stable is the real estate market ?
Is the real estate market dependant on any particular industry
sector? Is this sector enjoying growth?
What are the lending conditions within the country?
Finding in depth information to answer these questions is sometimes a long, but very worthwhile process. There are some great investment publications that include country growth figures as a starting point. Also the financial pages of major newspapers can give you an initial overview.
When you have targeted a particular country the web is your friend! Huge amounts of information can be found on specialized real estate blogs for whichever region you are interested. I am a great believer in making local connections and this is possible through joining forums and taking advantage of other sorts of social media.
Another thing to watch out for is whether any large scale building developments are taking place; information on this can be found through newspapers within the country, many of which can be found on line.
So when looking to make
Overseas property investments, your first port of call is without doubt monitoring the economic and real estate trends within the geographical region. Keep an eye out for my next article which will look at the huge role industry plays within the real estate market.
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