Is investing in land abroad a viable financial option?
Investing in land overseas has grown in popularity dramatically over the past decade, but is it really a viable financial option? Investing in land, in any location, can be extremely profitable. However, it can also be catastrophic if not done properly.
Today, many people are interested in investing in land abroad because it is far less expensive than land available in their home countries. When less money is outlaid for an investment, there is always less risk, thus making it more appealing overall. There is definitely the likelihood for growth and potential profits.
However, although investing in land abroad is an attractive idea, there are always risks involved. Investors must consider whether they will be immersing themselves into the new culture, or do they simply intend to hang onto the land in order to sell it later. International real estate should not be considered lightly; here are a few things to think about before taking the plunge.
Beware of fraud
Unfortunately, international real estate fraud is a growing problem across the globe. Anyone hoping to invest in land abroad should do so only after investigating the purchasing legalities, plus factors such as taxes and other details that may impact the investment. The best option is to hire a real estate attorney well versed in the laws of the land and who can provide sound legal advice. If that means hiring a domestic attorney as well as a lawyer in the other country, so be it.
Hiring an attorney may seem like a complicated process, but it is never a bad idea when it comes to investing abroad. It is also a good idea to work with a licensed real estate broker who is familiar with the region – or even better, hire a local real estate agent.
Stay on top of the laws and economy
Just like the home market, real estate markets abroad can change significantly in short periods of time. This is a standard principle of any country’s economy. Because real estate markets play such an integral role in any country’s economy, the local laws governing that industry may change. This can affect aspects such as property taxes, annexation rules and everything in between. International real estate can be particularly risky for investors who do not keep up with such changes and trends.
Where to invest
Once the decision has been made to invest in international land, it is time to figure out exactly where. There are a number of countries that offer wonderful property options at affordable prices, with prospects of growth. Chiang Mai in Thailand is one such place. With its wonderful weather, low cost of living and rich culture, moving to this area can mean a big return for a low outlay. Guam, a U.S. territory, is another location that proves to be quite viable for land investment. The currency is the U.S. dollar and everyone speaks English. Though the culture is very similar to the United States, the setting is not – lush and tropical, Guam seems like a little piece of heaven. Within the U.S, Florida is definitely a buyer’s market and prospects may be inspected through websites such as land for sale USA. With the right kind of research, investing in land is typically a viable proposition.