7 tips for investors
WHAT do you need to look out for in overseas property investments? ERA Realty key executive officer Eugene Lim offers some tips.
Buyers should know the country they are investing in well. It should be stable politically, economically, socially and legally.
The area should be up-and-coming, with new developments expected. The neighbourhood should not be one locals avoid. Checks should be done to ensure the development is where the developer says it is.
3. THE SECONDARY MARKET
Investors who want to sell their properties have to consider whether a secondary market exists and if locals or foreigners are their target.
Some countries have restrictions on foreign ownership, such as the types of properties, minimum property price or location of the property which foreigners can buy.
Taxes could be imposed on foreigners. There may also be income tax when rental is collected, or capital-gains taxes.
Buyers should research the background of the developer to find out if the firm is reliable.
7. OVERSEAS AGENT
You may need to get an overseas agent to manage your property, such as to find tenants.