A critical feature of owning rental properties is that there’s no need to stick to a single local market with today’s technology. In some instances, buying outside of the town or city where you live can be far more profitable and offer you new opportunities and perks. You may even want to think about buying rental property in another country. There are multiple excellent reasons to do so, from diversifying your investment portfolio to planning for retirement. But buying property internationally may sometimes be a hard process. For this reason, it is advisable to know as much as you can about your desired location and financing options before buying property abroad.
Why Go International
Investors want to purchase a rental property in other countries for several factors. For some, it offers a way to diversify a real estate investment portfolio and achieve higher returns. Some investors hunt for locations that tend to attract tourists but have a low cost of living. These places can make for higher rental income in certain circumstances. Another major motivation to invest in international real estate is to prepare for retirement. While many regions in the U.S. can strain the average retirement income, there are numerous places around the world where costs are lower, and retirement funds can last much longer.
Things to Know Before Buying
Indeed, there are several things to learn about your ideal location and property before you invest. These include:
- Laws: Every country has various laws that govern real estate transactions. Failure to understand the applicable laws can lead to complications, from property rights disputes to delays in the purchase process. Be sure to study the laws that apply in your case!
- Citizenship and Ownership Rights: In some countries, property can only be owned by citizens. Different countries may also have various ideas about what constitutes ownership, and establishing or passing on that ownership may vary from how things operate in the U.S.
- Currency: Fluctuations in currency are quite normal and difficult to predict. When finishing any major financial transaction, you have to be prepared for currency exchanges to be rather fluid and, in some cases, may experience losses as a result.
- Stability: Living anywhere outside of your country of residence comes with certain political risks, mostly if the country’s government in which your property is located isn’t stable. You may risk losing your property, income, or related assets if worse comes to worst.
Financing
Another main consideration of buying rental property internationally is financing. Few U.S. lenders would even consider loaning funds for property outside of the country, which leaves investors with a range of alternatives. Most investors pay cash or use funds from a retirement account to purchase a property outright.
This is probably the simplest route to take, though the most expensive. In other scenarios, you may be able to qualify for Golden Visa or other country-sponsored programs or work with lenders in the country where the property is located. Just be aware of scams; many would-be scammers see foreign investors as potential targets.
If you’re a remote investor looking into purchasing rental property in Findlay and the surrounding areas, Real Property Management Clarity Team can aid! Our Findlay property managers work with investors of all sizes to help assess properties, locate off-market deals, and much more. Contact us to learn about your options.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
