When it comes to making smart business choices in your life, there are many different ways you can make a good amount of cash and achieve what you want to achieve in your lifetime. Investment is one of the biggest ways to earn money passively and it is something which many businesses will do either as a side hustle, as part of their career, or in their own right. If you want to think about investment as a way to earn money, you need to think about what to invest in.
Without a doubt one of the best things you can invest money into is property. Property is an essential asset and it is an object which will always be wanted and needed by people in society. You can invest in small amounts of property locally like in an equity residence fund or decide to invest overseas, and it is in overseas’ investments that we are going to discuss today.
Here are all of the things you need to think about before investing overseas.
What is your reason?
Before you even think about buying a property overseas to rent it out, figure out why you want to buy one overseas. Why can’t you buy a property in your own country? Do you have a specific reason for choosing another part of the world such as the rent cost and your budget? It might seem odd to consider why you want to invest in the first place, but it is an important thing to think about and it will be what drives you in your investment further down the line. If you don’t know why you are choosing this location, then you shouldn’t be investing in the first place.
Do you have the funds?
You will know if you have ever bought your own house that there is a lot of red tape to step through when it comes to being accepted for a mortgage. You will need to take a long hard look at your finances and make sure you have enough money to cover all of the paperwork essentials:
- -the mortgage
- -home insurance
- –home buyers report
- -solicitor fees
If you don’t have more than enough to cover all of the expenses listed above, then you shouldn’t consider buying a property at this time. Save for a little bit longer and you will be able to eventually afford to do what you want to do.
Tax is a buzzword in adult life which we all wish didn’t exist, but as a member of society, we have a duty to pay tax on any money we earn for ourselves. If you are thinking of investing in property and you will be earning money from rent throughout the year, you will, of course, need to be paying some tax for the money you earn. Think about researching and speaking to revenue and customs to find out what your liability is with tax if you do buy a home and earn rent. This will allow you to work out whether or not the property is worth the money you spend.
Think local value
When it comes to buying a property in a different part of the world, think about what the exchange rates are like and also how the property market is holding up in your target country. A good example would be to take a look at Malaysia property news and you will be able to see how housing prices are changing, how the value of a home is measured, and whether or not you can visibly invest in this. Never risk investing in a country that has a tumultuous financial situation because you never know when the scales will tip out of your favor and cause you to lose your money.
Whenever you want to buy a house, you need to ignore what the estate agent tells you the home is worth at first sight and instead hire an independent party to come in and value the house for you. When it comes to putting a lot of your own money into something, you have to be 100% sure you are making the right decision and because of this, it is always worth going the extra mile to make sure you are not being sold something too pricey for what it is.
It doesn’t matter if you don’t plan to stay in your target country when investing in a house, you will still have to interact with the seller, estate agents and you will eventually have to think about communicating with any future tenants who rent your home. Because of this, it is incredibly important for you to either choose a part of the world that speaks English or to make the effort to learn certain parts of the language and use Google Translate to make communication a little easier for you and everyone else. You mustn’t come across as saying anything wrong to offend people, so you might even want to hire a translator to come with you when you have important legal meetings.
Will you own it?
You always need to maintain a sense of trust when it comes to real estate, and one of the things which can sometimes throw that trust away is if a previous developer has borrowed money for a project and not paid it back. You might end up becoming liable for this payment if you take ownership which can be a huge dent in your budget and it can set back the project massively. Make sure you can come to an arrangement everyone is happy with and have a lawyer present to give you some advice and make sure that the right decision is made.
Research the location
If you want to make a really good investment in your property, you need to make sure to look at more than just the property in question. Make sure you also think about what the local area is like and what kind of amenities people can benefit from if they rent your home or buy it from you. For example, you can look at local crime rates, schools, travel links, shopping centers, and also things such as green space which many people value. If you find a great location for your property, you can make much more money renting or selling so it is worth finding the best place to invest in.
When you and your tenants are out of the property and somewhere else, what measure do you have in place to make sure that the property is safe? Adding security and safety to your homes is, of course, beneficial to you and your investment, but more importantly, to keep your tenants safe and make sure that they are ok. Make sure to install an alarm system and cameras to give you and your tenants peace of mind.