Real estate prices vary globally but today one can see a rather peculiar trend, which is that the prices of luxury properties are going down. The global real estate market as a whole seems to be going for a downturn, but some countries defy the trend against all odds. For example Italy, where the housing market is improving despite the impending economic recession. All in all, the global picture of the real estate markets is clear. If one chooses wisely, now is a good time to invest in a property abroad. But to succeed, it will be essential to overcome the challenges of being an overseas real estate investor.
The Best Countries for Real Estate Investment in 2019
Investment in real estate is a lucrative business strategy, especially in 2019, a year that offers such great prospects in many locations. The most promising at the moment are:
● Brazil.
As a prime holiday destination coastal regions of Brazil are always a good investment. One can find beachfront properties at bargain prices in the region of Fortaleza and the yield from those should be about 8%.
● The Dominican Republic.
The real estate market of the Dominican Republic is getting stronger by the year and the number of tourists visiting the country is also steadily increasing. As cheap properties aren’t common in the area, the most lucrative plan is to invest in pre-constructions.
● Portugal.
Portugal is an investment target for those who are willing to work for a good deal. A large number of properties are too expensive to be used as investments. However, there are popular areas, even within Lisbon, which offer reasonable prices for the possible yield. The most cost-efficient deals for Portugal investment are renovation projects in the less popular coastal parts of the country.
● Croatia.
The real estate market in Croatia has been on the rise recently and the country’s tourist influx is increasing as well. This investment is for those who are looking for security as the popularity of Croatia among European travelers isn’t likely to fade.
● Turks and Caicos.
Turks and Caicos islands are enjoying a huge boost of popularity among tourists and the trend is sure to continue for a while. This particular destination is special because it’s currently one of the best options where investing in a luxury property makes financial sense because it can provide up to 8% yield.
Challenges of Investing in Real Estate Overseas
Unfortunately, for all the benefits that being an overseas real estate investor can offer, succeeding in this field is not easy. The number one challenge an investor faces is transferring money to pay for their new property. International bank money transfers are exceedingly expensive due to high fees and very unfavorable currency exchange rates used by banks. They can also take several days.
The solution for this particular issue is to use an alternative method of money transfer. Considering the fact that the amount is sure to be large, online money transfer companies are the best option.
But one should be extremely careful with these services as not all of them can be trusted. It’s best to go for the largest businesses in the industry. World First are specialists in transferring large amounts and they’ve been around for 15 years. The company also offers safety guarantees and a great app one can use to transfer money in 75 currencies within moments. These are the qualities one should be looking for in an international money transfer company.
Another important challenge that can prevent one from investing in the real estate market of some country is the laws of said country. Many states have restrictions for foreigners owning property within them. And even if they are allowed to purchase it, they might not be able to rent it out. Therefore, it’s essential to check the country’s laws and regulations regarding real estate ownership and business by non-residents. It’s always best to consult a local lawyer to understand these matters fully.
Language and cultural barriers are also challenges that overseas real estate investors must learn how to deal with. Language-related issues are quite obvious and one can prevent those by hiring a trustworthy interpreter who will make sure nothing is lost in translation.
Cultural differences, on the other hand, can cause some major problems. One should never forget that culture and traditions have a major impact on business ethics and even personal prejudices. It’s essential to research the people of the country one considers to invest in as this will allow the investor to find better deals. It’s also necessary for realistically assessing the prospects of a property. It’s no less important to learn the local traditions in order to avoid misunderstandings, which might cause potential issues.
If one chooses to invest in some of the more volatile regions, studying the political climate of the area and its immediate neighbors is another challenge. Any acts of violence that use politics for cover bring the tourism down a great deal. It’s the reason why Turkey has been in a slump since the last major terrorist attack.
Is Becoming an Overseas Investor Worth the Time, Money, and Effort?
According to reports, the outlook for real estate markets is highly promising in 2019, which means that investing in those markets is worth it. Becoming an overseas investor does pose some challenges, but it gives one access to multiple properties, which can yield much better results than domestic possibilities. And with the use of a reliable online money transfer service and a thorough research of the location one plans to invest in, any issues can be resolved fast.
