Why Invest in Overseas Property

Features & Benefits

Investing in an overseas property enables various financial and lifestyle benefits, with long, medium and short term options to suit all buyers preferences.

Long term property investors receive the benefits of wider market options, depending on financial restraints. With emerging markets the investor can place a lower outlay of costs, receive rental income for a greater number of years and receive the highest possible capital gains. This is an option often used by investors purchasing a holiday home, visiting the property during the tourism low-seasons and renting the property to other holiday makers during the tourism high-seasons. Others may opt to purchase in city centres, where there is the possibility for long term rental tenants, often locals, with a greater guarantee of year round rental potential. Holiday homes in desired locations are also considered for future retirement properties, good healthcare facilities, local amenities, warmer weather and cleaner air, providing the opportunity to enjoy retirement in a new environment.

Medium term property investments are a popular choice, purchasing either off plan or during construction in developments offering guaranteed rental returns for a set period of time. This enables the investor to receive both a rental income on the property with the management often supplied by on-site facilities, along with the possibility to use the property for several weeks of the year as a holiday destination. The investors often re-sell the property at the end of the rental guarantee period, if not renewable. These investors receive both a rental income and the capital appreciation that the property has received from the time of purchasing, when the price was lower in the pre-construction phase. The investor benefits from the local increase in tourism and by receiving the capital appreciation during construction and the rental period. With the on-site management, the property is often more readily sellable, with assistance from the management company, who on occasions also have client waiting lists of buyers.

Short term property investments are often the highest risk, while benefitting from high capital gains in a short period of time. Early re-sale of properties is the most common option for short term investments, when the buyer purchases the property off-plan prior to construction when the prices are at their lowest. Due to the payment structure of many developments, this enables investors to pay as little as the initial deposit, then immediately placing the property for re-sale. Sometimes as a service available through the development company. Selling during the initial phases of construction is attractive to the new buyer, as they are also able to obtain the property at a lower than market value. With the completion of the property sale, the initial short term investor receives the full property sale price while only having paid out the initial down-lay cost. This enables the investor to potentially receive impressive financial gains in a short period of time. The risks involved with short term tactics are high, as there may be delays in finding a new purchaser. In the event of any delays, it is possible the investor is required to outlay phased payments during the course of construction. Many buyers opting for short term returns are investors with the financial security to cover the payments in the event of delayed re-sales.

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