Things you need to know about international property investment

27 Sep 2016
These days there are many ways to invest your money. From the stock market and mutual funds and bonds to precious minerals like gold to name but a few of them, and the reality is that the list is seemingly endless.

One type of investment that has been tried and tested over many years, however, is that of property. And if you believe in what Armstrong Williams once said “...Real estate provides the highest returns, the greatest values, and the least risk”, then it’s clear that it’s a solid investment. One thing to definitely consider is international property investment because the fact of the matter is that sometimes you can get something extraordinary overseas that you would never be able to match at home for the same amount. Does the thought of international property investment interest you? There here are the top five things you need to know about it:


The benefits of international property investment

 international property investment


There are many benefits of investing in property in general, but an international property investment has a few added bonuses. Here are five benefits of international property investment:

  • You are in control – if you want to rent your investment out, flip it and sell it for more than you bought it, or use it as a holiday home, you have full control of your property investment.

  • You earn a different currency – while the pound is still relatively strong, with the ever changing economic landscape it’s always a good idea to have your eggs spread over many baskets. The great thing about international property investment is that you get to generate cash flow in a different currency.

  • It’s a hard asset – more than being able to generate cash flow in a different currency, your international property investment is a hard asset, that retains its value independently from the currency’s value.

  • A second home in the sun – a property investment abroad could mean owning a gorgeous property right on the beach or in a particularly beautiful place in the sun for potentially less than what you may pay for an apartment in the centre of London.

  • A potential retirement residence – buying in a place that is both incredible and has a lower cost of living than England could mean that your international property investment may just make the perfect retirement residence down the line.


The best places to invest

There’s no hard and fast rule when it comes to where to have your international property investment, but there are a couple of things to be conscious of. For one, you want to buy a property in a fairly stable market, despite the temptation of buying in places where the property prices have dropped significantly. Other factors that you would really want in an investment property abroad is something that is an easily accessible location, close to public transport routes and with good local amenities nearby. You also want to ensure that your property is in a popular tourist destination to make sure that you are actually able to rent it out. There are places, such as Calpe in the Costa Blanca, which are popular with tourists year-round thanks to the mild Mediterranean climate and the over 300 days of sunshine it gets each year.


Calculating your rental income

 international property investment

When it comes to an international property investment, it would be a good idea to work out what your potential rental income would be to see if it, in fact, be a good investment or not. The first thing you should do is see what the going rental rate is for properties similar to the one you are interested in to get an understanding of what you could earn.

Keep in mind too, that if you want to ensure that your property is constantly rented out, you want to keep it at a certain standard. You will also need to consider maintenance periods, periods where your property may be empty and cleaning costs. And, you also need to consider that you will have to pay income tax on money received through a rental. If you need more information on tax when it comes to properties abroad, click here.


Finding the right tenants

Finding tenants in your international investment property while you are in the UK can be a little tricky. But having said that, there are definitely ways of doing so and managing the property easily. One of the best ways to do this is to find an estate manager on the ground that you trust. Just factor their fees into the cost of the rental, and decide for yourself if you think it will be worth it. Keep in mind that there is very little you can do from the UK should anything go wrong while someone is staying there.


If you are looking to make an international property investment in an area that is sure to generate you income year-round, then look no further than Calpe. Contact us to take a look at our property for sale in Costa Blanca where you are bound to find your ideal investment property abroad.

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