Posts Tagged ‘overseas property investment’

As you scout the market for possible investment opportunities, consider overseas property buying and for sure, you would not resent a decision to invest in such foreign assets.

Just like any other forms of investments, of course, there are always risks to investing in any overseas property. However, those possible setbacks can be easily offset if you would carefully place and manage your overseas property investment. In any investment, there is always a need to make an imperative overview or review about the nature, location and potential of the investment. Such a practice is best exemplified and is more useful in the property investments. Here are several simple, practical and logical guidelines on how you could make that overseas property investment really count and yield significant investment returns.

o Determine an established market. If you are finding offshore real estate assets, you could easily spot many advertisements even in the local or national dailies. However, your discernment and judgment call should hinder you from making immediate and less-thought about investment decisions. When considering buying overseas property assets, you should first decide on which country you would place the investment. The emerging markets, including Costa Rica, Dubai, Macau, Malaysia and the Philippines, are considered the most promising locations of buying offshore real estate sites these days. Those countries also have track records of having good economic growth and favorable land prices.

o Go for competitive prices. After you decide about which country to focus your investments at, your next move should be looking at competitive prices. Of course, investing in prime markets like the United States, the United Kingdom, Canada and other developed nations would surely be favorable, but the problem is real estates in such locations are almost always overpriced. In the emerging markets, you have a standing chance of finding and securing a property that is good, favorable and at the same time, affordable. Like in most investments, your goal when buying overseas property assets should be simple: Buy at less, and in the future, sell at more. That means, strive to buy assets at cheaper prices, and in the future, take proper timing to sell that investment at very higher prices.

o Review the long-term market prospects. Look at the market and expert forecast and expectations about the economy and financial industry in the market where you are buying the overseas property. When doing so, it would most advisable if you would also assess the overall political and economic scene in the nation. You know that political and social turbulence affects valuation of properties. If a country is always bogged by market and political uncertainties, you should start looking for other overseas property assets in other nations. Also deliberate on the national policy on foreign investors. Some countries have attractive and favorable regulations regarding offshore investors while others remain conservative.

o Contact a reliable real estate agent in the market of your choice. It would be better if you would be able to personally conduct an ocular inspection of the site so you could assess the potential of the overseas property asset in terms of potential investment yields.

Julia Vakulenko is a licensed broker associate with Tampa4U.com Realty. She has one of the hardest working Tampa Real Estate team in Florida specializing in Tampa Condos and also in2Va Team for Northern Virginia Real Estate.

Author: Julia Vakulenko
Article Source: EzineArticles.com
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Overseas property investment is more popular than ever. You can make triple digit gains and many investors do, but many lose heavily, so what seperates winners from losers?

Here we are going to give you tips for overseas property investment that will help you enter the small minority who make the big profits and make your overseas property investment a success.

Here are your 4 tips for overseas property investment success

1. Look for best price in terms of risk – reward

Many people when trying overseas property investment simply look for the cheapest price they can find and assume that prices will go up in value and they make all sorts of projections but thats all they are projections and not based on reality.

In most instances the cheapest properties do have high profit potential if the market takes off, but in most instances they don’t.

Many investors find their overseas property investment was cheap when they bought it but gets cheaper!

The way to avoid this sceario is to buy property that may not be the cheapest but has the best potential for reward in relation to risk.

This means buying a market that has taken off is attracting investment and has a track record.

2. Buy a trend in motion

Investors in any market to do with money know that “a trend in motion should be bought” and this applies to overseas property investment.

Regardless, of whether you are buying a villa, a vacation home, or a condo, you want the location you buy to be rising in value.

It’s a fact that if you have a property trend in motion its likely to last for decades, as steady and rising investment attracts more investment.

For example, in Central America Costa Rica has been the leader for years and many investors have made 30 – 100% profits annually.

Many investors however have decided there is more potential in “newer markets” such as Honduras, Belize or Nicaragua, but the risk is higher and a long term trend is NOT Established.

Costa Rica has huge established expat community and record investment and the fact that a huge community exists means it’s popular and will grow.

Will potentially unstable and poorer countries come to rival it? Maybe, but you are buying potential and NOT a long established trend.

It’s for each investor to decide how much risk they want to take in their overseas property investments – A proven market with solid gains and an emerging market with higher risk reward.

Keep in mind that with most new overseas property investment hot spots they remain “hot” for a while and quietly die.

3. Be careful with location

No matter what country you make your overseas property investment in, don’t buy unless you are buying near developments or infrastructure that will see real estate values rise in price.

Don’t buy in an area you think will become popular. Buy in an area you know WILL become popular as it’s either near new infrastructure such as roads, marina’s etc, or near resorts that are likely to expand.

4. Make sure you know the country

Is it stable, how popular is it, what are your rights?

When buying you need to do a complete review and make sure it’s a safe and stable market for you to invest in.

Get a good realtor with solid track record to help you and don’t try and save by doing your own legal work!

Get an attorney who knows the law and make sure your overseas property investment is done correctly.

Tips to maximize rewards

The 4 tips above for overseas property investment will allow you maximise your rewards and minimize your risks.

You can make more by not following these tips!

The above tips in overseas property investment are ONLY for investors who want solid rewards with low risk – not pioneers who want to take chances.

Be a pioneer if you wish, many made huge gains but remember most took arrows!

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For more info on all aspects of investing in overseas real estate visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Author: Sacha Tarkovsky
Article Source: EzineArticles.com
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Buy Off-Plan Property Overseas While researching for property investment overseas on the Internet, the term ‘off-plan’ must have popped any number of times on property websites. As a Brit investor, you must be wondering as to what the term implies (literal meaning could be confusing!). Besides its meaning, here is everything you should know about buying an off-plan property overseas.

First Things First! – The Meaning of Off Plan Property If you are planning a property before its construction is complete, then you are buying that property off-plan.

The concept of buying off-plan is, certainly, not new. Whether it’s overseas property investment or at home, off-plan properties are an instant hit among the investors from all walks of life. Basically, by buying off-plan property overseas, you are reserving a piece of property overseas under development, or to be developed by the builder. The buying process, of course, starts only after the approval of building plan from the relevant authorities. You can buy off-plan at any stage of construction before it’s officially completed, i.e., the completion certificate is issued by the relevant authorities.

Advantages of buying off-plan property Overseas The ever-increasing demand for off-plan property overseas is not without a reason. In fact, it makes great business sense to buy the property off-plan, which may cost you a fortune after completion.

Here are some of the advantages of investing your hard earned money in an off-plan property overseas:

• In a market, where real estate prices are prone to violent fluctuations, there’s no better option than off-plan. By buying off-plan in such a market, you are ensuring that you pay considerably reduced amount today, i.e., the prevailing market price. You never know where the prices end up by the time construction is complete. And in a country, where economy is booming and tourism flourishes, normally, real estate prices are more than likely to go up. Thus, considerable savings is a definite high point in any off-plan real estate investment overseas.
• If you are investing off-plan in a property that is in its early stages of construction, and if the rules and regulations allow, then you have the privilege to give your inputs into the layout and finish of your chosen property. According to your tastes and preferences, you can suggest colour of walls, tiles, carpets, kitchen and bath accessories, etc. This way, you’ll be ensuring customized treatment of your home even on a foreign land
• One of the major highlights of the off-plan property is the stage-payment often required by the builders. This simply means that you book the property by making a small down payment, and make balance payment in manageable batches as and when required by the developer. According to your financial health, you can opt for different payment plans offered by the developer of an overseas property.
• Quite often, the final payment is the biggest one. When it’s time to make the final payment, the astute buyers, who had a simple profit motive to buy the off-plan property in the first place, put the property in the market for sale. Of course, he’ll take such a step if the real estate market in that country is bullish and he is assured of making handsome profits by selling it at this stage.
• Some off-plan investment plans also offer guaranteed regular rental yields after completion. This is common in countries and regions, where tourism or service sector flourish, and as a result, the demand for rental property is always on the upswing. The buyer has dual satisfaction in this case, of owning the property as well as getting assured rental income without taking the pains of renting it out himself or herself. The entire risk is borne by the developer. If the rental income from the property exceeds the guaranteed amount, he takes out the profits, and if it is lower, he assumes entire loss, and makes the agreed payment to the owner.

Though off-plan property investment seems lucrative, there are some pitfalls waiting for the vulnerable buyers. It’s better to be safe than sorry!

Here are some tips to help you avoid the dangers of getting duped while buying an off-plan property overseas :

• Since you are buying off-plan overseas; this means you have little or no knowledge about the real estate market of that country. Such a scenario calls for hiring a reputable real estate agent who knows the ins and outs of property market in your preferred country.
• Never hesitate to bargain if buying directly from the developer. Even if the deal sounds fair, still you must give it a try. Some developers will allow considerable cuts in their commissions in order to secure your order.
• The credibility of the project under construction must be ensured by making proper research on the Internet, and querying about the same from the relevant authorities in that country.
• Where possible try to buy where the project under consideration has a bank guarantee to back it. In an unfortunate event where the project falls through, you’ll be, at least, assured of getting back your invested money. In the majority of new emerging markets however this is often not possible.
• A reality check of the peripheral real estate market should be undertaken in order to assess the promises made by the developer.

Frank Crowley
Azure Overseas Ltd
http://www.azureoverseas.com/

Brought to you by Azure Overseas – Overseas Investment Property Specialists

Author: Frank Crowley
Article Source: EzineArticles.com
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If you plan to buy property in Mexico it is very important you receive as much information as possible to be well informed in making your decision. Below are some introductory guidelines that can be useful:

Property in Mexico

Financing your Mexican Property

Mexican Law: Property ownership

Ejido (Agricultural) Lands

The Role of the Notary Public in Mexico

Costs and Taxes

Important! The information in this section is provided for outline guidance only. Information, figures and rates change without notice. For updated information please contact us through our Contact Page.
InvestBajaSur Conditions of Site Use.

Property in Mexico
This introductory guide assumes that you are considering the purchase of land or property in Mexico.

Buying property in Mexico, whether it is land, a serviced apartment or a house, can offer good value for money in comparison to prices in the US and Europe. Although, prices in some areas have increased dramatically in recent years, care should be taken in assessing a property’s true value; Mexico’s land costs can be lower, building and maintenance is cheaper and cost of ownership (taxes, utilities) is very low.

The reasons to buy property in Mexico come down to a personal choice, and depend on your individual circumstances. Perhaps you will be living in Mexico for some years and you see long term rental as ‘wasted’ money, or perhaps you’re looking for an overseas property investment that will surrender a rental income, while providing you with a place to stay on a holiday visit…

Property value in México increases year-to-year, as they do in most places. And as with all property, the relative value and appeal of land or property in Mexico comes down to the “Location, Location, Location” factor.

Another important factor to consider when buying property in Mexico is the developed state of local and surrounding infrastructure in the location you are looking at. Not all areas are well developed, and property prices will be cheaper in those that are not. However if, for example, a high speed road is built connecting a previously ‘remote’ location to other, better developed places, you may see a property investment in that area increase substantially. México is a vast country – at nearly 2 million square kilometers – and not all of it is easily accessible. Road infrastructure is improving every year, with most major places now adequately connected, and work continues to connect the more remote areas, but this will take time.

If you’re considering the purchase of property in Baja California Sur you have come to the right professionals. Thousands and thousands of foreigners have successfully purchased land and property in Mexico, there is no reason why you should not become one of them if you want to.

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Financing Your Mexican Property Investment
Historically and in many cases today, most property/real-estate deals in México are cash only. Mexican Banks are now beginning to offer mortgage products for the purchase of real-estate in Mexico, although 30-40% deposits are required and interest rates are not as attractive as those in the US, Canada and Europe.

There are some banks in the US who are now offering mortgages on Mexican Property, but they are usually offered on the back of equity built up in a property in the USA and the rates are higher on the additional loan amount, to reflect the additional risk. Many Americans HAVE mortgaged a house in México using this financial vehicle so it is possible.

Financing inside México is still difficult and relatively expensive, so if you plan to buy real-estate in México you will be well advised to have your own foreign funding available; either through an equity-release scheme or other fund. Some people who are planning to retire to México will sell their house in their home country and use the proceeds to finance property in México; those who want to keep a ‘base back home’ may release equity from their existing home, rent it out, and use the dual proceeds to fund their retirement home in México.

If you are looking for financing for U.S. or Canadian citizens feel free to take a look at this financing link below:

Finance North America

Real Estate Lending for U.S. and Canadian Citizens

http://www.FinanceNorthAmerica.com

Telephone from US/Canada 1-866-Yes-4Mex (1-866-937-4639)

This applies to finished homes

See also: Payment for your property investment, later on this page

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Mexican Law: Property Ownership

Mexican Law provides for private ownership of land by foreigners, its laws are very specific about the way in which land rights should be transferred from seller to buyer, and also what type of lands are and are not eligible for public ownership. A Notary Public (see below) will guide you through these details, but generally:

Property may be purchased and owned outright for residential use by foreign nationals outside of the 100km restricted land border zone, or outside of the 50km coastal zone.

Inside of the restricted border/coastal zones, foreign nationals may own land through a fidecomiso (a trust) which is set up through a bank and provides for ownership of the land and property in all but name.
The Mexican Constitution previously banned foreign nationals from owning property that was within the restricted border zones. This old law was intended to protect Mexican soil from foreign invasion.

Because the Constitution cannot be altered in this respect, the Government introduced a system of land trusts, so that foreign nationals could invest in property inside of the ‘restricted’ zones. So now, if you as a foreigner, want to buy a dream home with a Pacific beach view, you can, except that it will be by means of a trust, set up through one of the main banks in México.

The trust holds the deeds to the property, and you and/or other named persons which you specify are sole beneficiaries to the trust (and therefore the property). You have full rights to do whatever you like with your property: it can be developed (in accordance with local planning regulations), rented, leased, sold, or given away. In other words, you own the property in all but name.

The trust enables you to name a beneficiary upon your death, and you do not need to have a Mexican Will in order for your wishes regarding the trust to be executed.

You do not have to be a resident of México to own property there, so there is no need to qualify for resident status under immigration laws in order to have a property investment in México.

Mexican Law on property ownership is comprehensive and provides protection for the seller and the buyer in all property transactions, provided that the law is followed, and you ensure that all necessary documentation is present and that the procedures are adhered to. Your Notary Public (see below) is an important person in this process, and he/she will guide you.

Title Insurance in México:

When you buy real estate in México, you would do well to consider taking out Title Insurance on the property. Title Insurance covers you, should the property you buy subsequently turn out to have liens associated with it. This is especially relevant if the property you are buying has been privatized, having previously been classified as being “Ejido” lands (see below), but even if this is not the case, Title Insurance will protect you if any other previously unforeseen lien or charge is brought against the property before you took possession of the Title Deed. Rates for Title Insurance are around US$5-US$5.50 per US$1,000 of the property’s value; pay-able once only at the point of purchase. If you need more information we will advise you further about Title Insurance.

For more security in your real estate transactions in Mexico please contact Stewart Title Baja and Stewart Title Los Cabos

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Ejido (Agricultural) Lands
Ejido lands have a long history in how they came into being. Essentially, they are similar to “commons land”; after the revolution, communities and peasants were handed strips of land, in the main, to grow crops on, and they are called “Ejidos”. You CAN buy Ejido land, but the sale requires the agreement of the whole community that ‘own’ it, the process is arduous and risky. Some big property developers may negotiate to buy a big plot of Ejido land, with a view to “fractionalizing” it (usually introducing mains water, sewerage and electric to the land as well), to develop property and/or to sell off the individual plots to small property investors. Under these schemes, the land is often re-classified and made available for private ownership. The process is usually undertaken by professionals who understand Mexican property law intimately and can from a year to several years. The current advice is: double check to make sure that the land you are buying is not Ejido land and if it is, avoid it.

Note: It is advisable to purchase Title Insurance if the property you are purchasing is ex-ejido land (although regardless of the type of property, Title Insurance is a shrewd investment). Read more about Title Insurance under the heading of Title Insurance, above.

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The Role of the Notary Public in México

The Notary Public is the most important person you will deal with when you make a property investment in México. Do not confuse the role of the Notary Public in the US or UK with its counterpart in México: In México, The Notary Public has the power to witness and certify important business documents which require absolute authenticity. The appointment also holds responsibility for the management and secure storage of original records. Notary Publics must be Mexicans of at least 35 year in age, they must have a degree in Law, have 3 years work experience at a Notary Public office and they must pass a stringent exam. Those who pass, in time, are appointed as Notary Public by the State Governor.

Under Mexican Law, the deed to the property must be prepared by a Notary Public. As a buyer, it is your right to choose the Notary Public, and it should be your first port of call – or second after your lawyer.

The Notary Public will ensure that all documentation and permits are in order so that the transaction can proceed.

Everything official to do with your transaction should be done via the Notary Public: We will be happy to contact you with a Notary Public of your choice.
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Costs and Taxes

When you buy property in your home country, you are usually faced with the associated costs like agent fees and taxes. México is no different, although the net value of these costs as a percentage of the property values may be lower overall, but this is not guaranteed as professional fees have risen recently also.

Costs and Taxes: Buying

Acquisition Tax: This Tax is paid on the sale value of the property and is equivalent to about 2%. This tax is paid whether the property is sold, transferred, donated, placed into trust, split off or merged.

VAT (Sales Tax): No Value Added Tax (Sales Tax) is payable on residential property. Commercial Property transactions are liable to VAT at the current rate in addition to the Acquisitions Tax.

Appraisal Tax: The Tax Authority may choose to perform a commercial appraisal of the property after you purchase it. If the appraisal value is more greater than 10% of the price you paid for it, you will be asked to pay 20% tax on the difference between the two amounts. This sum is due within 15 days of the date of the appraisal report.

Registry Fee: In order to have the Public Records updated, a 1.3% fee (based on the value of the transaction) is paid by the buyer.

Public Notary Fees: You will be required to pay fees for services provided by the Notary Public. These are about 1.5% of the transaction value, plus the cost of the official appraisal (as described in Valuation section, for tax purposes)

Bank Trust: If you purchase property within the 50/100km restricted zones, you will need a bank to set up and manage a trust for you. Shop around, as prices vary from Bank to Bank. Set-up fees can cost up to US$750, with annual service charges between US$300-US$500. The annual service fee will cover legal obligations (e.g. the filing of necessary documents annually) by the bank on your behalf.

Lawyer / Attorney Fees: If you hire a lawyer / attorney, you will also need to pay him/her with fees for services they undertake on your behalf. These should be negotiated in advance.

Land / Building Surveys: If you need to undertake any land or building surveys, these will have to be paid for separately. Cost will depend on type, extent and complexity of surveys undertaken.

Foreign Office Permit: Your permit from the Mexican foreign office will cost around US$150.

Service Fees: If you are buying a house in a gated community, or an apartment, be sure to check on the annual service fees, and have these put in writing. Service fees can range from US$100 a year to US$1000 a year, depending on location, number of houses or apartments in the enclosure and amenities offered.

Title Insurance: When you buy property in México, you would do well to consider purchasing Title Insurance. Rates are based on the sale value of the property and are charged at around US$5-US$5.50 per US$1,000 of the value. More Information about Title Insurance.

Author: Norvell Abente
Article Source: EzineArticles.com
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Tunisia is a hospitable country with stunning natural beauty, miles of golden sandy beaches and a pleasant and warm climate. Tunisia has a wealth of attractions for tourists which include:

100s of historical and archaeological sites and ruins

Large number of museums

Very good flight connections from all the main cities in Europe

Historical villages with traditional Tunisia property and narrow winding streets

Varied landscape with rugged mountains and desert plain

Excellent sunny weather and climate

Superb leisure and sporting facilities which include diving, golf, hiking, hunting, riding, surfing, sailing, tennis and wind surfing

Very good tourist infrastructure

Low prices for real estate and properties

As mentioned Tunisia has a wealth of history and culture and over the past 3000 years been influenced by numerous civilizations that include the Phoenicians, Romans, Byzantines, Turks, Spanish and French, which have all left their mark and contributed to the rich culture of Tunisia.

Tunisia also has a very interesting range of old markets (souks) where one can buy distinctive locally handmade carpets, pottery, ceramics and handicrafts.

Facts about Tourism which are helping drive the overseas property investment market

Tunisia’s government have invested large amounts of funding on the tourism infrastructure and worldwide marketing. The funding has been allocated by The Tunisian National Tourism Board and has helped to increase visitor numbers and Tourism growth considerably.

Tunisian Tourism Minister, Khelil Lajimi, confirmed that the government is planning further investment in the tourism sector.

During 2007 6.7m tourists visited Tunisia according to the Tunisian National Tourism Board

Most tourists to Tunisia come from Europe and North Africa

The number of French tourists to Tunisia has reached some 1.3 million in 2007 with Tunisia representing the 5th most popular destination among French holiday makers

Above is juts a few of the points which is driving the strong tourism market in Tunisia and it is in part because of this strong growth and tourist potential which is attracting property developers to build touristic & residential property developments aim at the international property investor market and vacation home buyers seeking Tunisia property for sale