Buying Property in a Foreign Country

Discussion in 'Buying & Selling Real Estate' started by MillionsMercury, May 13, 2015.

  1. MillionsMercury

    MillionsMercury Member

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    In your opinion, do you think that buying property in a different country is a good investment?

    I've been watching House Hunters International and it got me wondering about people who buy houses in a foreign country. I kind of wonder if it is even worth considering. I mean, unless you spend a lot of time in the country, you won't be using it much. You could rent the property out though.
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    It's an interesting idea but takes a lot of reading and learning as different countries have different laws and a different way of doing things. Also keep in mind that if renting it out you are going to have someone manage it since you most likely live too far away and you might not even speak the language that most people use in that country.

    So yeah, it's not a bad idea but just be careful and take all the risks into account before making a decision.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Political risk is usually what I am most concerned about with foreign investment.

    If all else is more or less equal, look at countries where the currency is weaker relative to the dollar for investing.
     
  4. Fredrick Jones

    Fredrick Jones Well-Known Member

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    There is also the problem that the person you get to look after the property might be dishonest. In places like USA it is possible to take legal action against him, but in certain places it is difficult to take legal action, the court systems are slow or corrupt. It largely depends on the country, if it is a developed country then depending on the price it can be a good investment.
     
  5. gracer

    gracer Senior Investor

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    I totally agree with this. If you're frequently travelling to that country then it would be a wise decision to invest in a house because it will save you more money in the future rather than spending it on hotel rentals each time you make a trip. But if you're not frequently in that country and you want to rent out your property, you have to make sure that everything is accounted for because you'll never know if you could really fully trust the person you hire as someone in charge of your business. There are also certain countries where they don't allow foreigners to buy land or house properties unless they are married to a citizen of that country.
     
  6. Sunflogun

    Sunflogun Well-Known Member

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    Buying in a foreign country can be a really good deal considering we have the right contacts. Some countries have currencies that worth a lot less so our capital there is worth more, so we can make better and bigger deals.
     
  7. CarpeNemo

    CarpeNemo Well-Known Member

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    Political upheaval and laws get in the way of this, a lot of the time. Many countries have laws to prevent foreigners from owning land if they don't live in the country. We're having some of this on our own doorstep with foreign investors buying up large swathes of Detroit for extremely cheap, and it's not going over too well with people here. It's not illegal in our country, but it's easy to imagine how the atmosphere for such a deal in other countries could be poisoned to an American stepping in to buy land up.

    We're already seen as meddlers and invaders, and that's why I think political upheaval would be a factor in it. What's to stop the government there from letting you spend all your money buying and monetizing land by building housing or industry, and then seizing it for various reasons? Of course I assume anything European would be safe from that, but still - it's a risk.
     
  8. crimsonghost747

    crimsonghost747 Senior Investor

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    What's to stop your own government from doing it? It might be a risk in some unstable countries but anything from the western world should be ok in this regard.
     
  9. In the running

    In the running Well-Known Member

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    You have to look at the exchange rate as well. Buying property is always a good idea regardless of where it is. What your plan is and how you implement it is what makes a good idea turn into a bad investment.
     
  10. Investor

    Investor Well-Known Member

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    Buying property overseas is always a good investment, because 1) the asset overseas is not subject to any possible crisis situation in your country that may be present, and 2) the acquisition procedure may be much easier and cheaper than in your country. Also, you may find that you are able to get more value for your investment overseas than you would in your country. As for me, I am definitely thinking about investing overseas!
     

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