How to invest in foreign real estate?
Any serious investment are a destiny of experts and to make it offhand it will not turn out (it is long, labor-intensive and expensive process). But it is possible to receive the general ideas of its complexity and to be insured partially, without making those gross blunders which can avoid at a certain diligence even the layman.
Remember, the decision of investment is made not where you are enticed, filling in viscous unction in ears, tempting with a kaleidoscope of bright affirmation and hackneyed tricks with magnificent discounts (at the urgent conclusion of the contract). Do not shout of the real investments, count them with the calculator in hands, checking the state-of-the-art reviews full of boring schedules and tables, communicating with the whole group of experienced, narrow-purpose, independent consultants (economists, lawyers, realtors, analysts). Unfortunately, independently we Will assume to conduct such analysis extremely difficult
that all of you counted and weighed, having come to a conclusion that from all investment tools available at the moment, for one reason or another to you this is more attractive.
About what it is necessary to know before you show willingness to acquire any real estate. Opinion that it always and everywhere grows in the price this cardinal error (I hope that those who do not know it yet remained not so much) and also that the prices of it after falling are rather quickly restored. It not always so. Sometimes on restoration decades leave, and sometimes restoration does not happen at all. The worst option and the investor`s nightmare - when the prices continue to fall up to a zero mark (and it can occur not only in the region which unexpectedly became depressive), continuing to yield to the owner not only the losses connected with total loss of the invested capital, but also the further expenses connected with the maintenance of real estate and taxes for possession of it.
The following that it is necessary to understand - the fact that the house of your dream and investment have among themselves nothing in common The house - dream is a mental projection to positive emotions, anticipations of rest and sweet infinite relaxation. Investments is a statement at the center receiving profits, the income, a spirit for serious work and the deep pragmatic analysis deprived even of a shadow of a romantic crape Whether the compromise is possible? It is possible, but as almost any compromise, it is defective, and here the more pulls you to one, the another suffers from
B than all more - a difference, I will try to explain on fingers What do the majority of us represent when draws the place in which it would be desirable to live and enjoy life in the imagination? Warm clean sea, lack of crime, low prices, qualitative food, friendly and smiling natives. But you have to understand - these criteria not always play the defining role at the choice of object of investment. What far to go? Moscow - the leader in investment appeal in Russia - it is possible, it is not absolutely correct example, we argue on foreign real estate, but it is extremely clear to all our compatriots.
Before being engaged in this difficult process, it is necessary to answer with to himself the following questions :
For what it is necessary to you? Answer yourself honestly - ambition, an insurance, training of children (can, it is more favorable to rent the apartment for the period of their study) All listed options with investment have nothing in common.
the Horizon of your investment - (if you are going to invest less than for 3 - 5 years, to you other investment tool is better to find the term for which you are ready to make the investments).
investment Volume. You have to understand that one of important criteria of investment is liquidity. As a rule, the most liquid objects are not the most expensive, but also the cheapest happen extremely seldom too There is not a lot of millionaires, and the garbage is necessary to nobody.
Admissible losses. You have to understand what any investments, even the safest, do not exclude let and minimum, but risk. You have to foreknow for what maximum losses you are ready to go and after what limit in case of adverse succession of events you will have to leave your investment with losses.
What is the time you are ready to devote to it (if there is no time at least for the superficial analysis and control of investments, consider still expenses on consultations and management).
That is more important for you - the income or safety (the high income, as we know, is connected with high risks).
the Expected income. You cannot know for certain what it will be, but it is necessary to assume and count - to count it potential profitability of object, considering all possible income and expenses on it (at the same time it is necessary to consider that, for example, in Bulgaria duration of a high season only about 4 - 5 months, and then your real estate can stand idle), constant expenses (utility payments, services of management company), periodic (taxes, tickets, visas, the health insurance, etc.) .
Who buys real estate what, sorts why whether you will be able to sell the house chosen by you - a coma for what term You have to be absolutely sure that the acquired real estate can be sold by you at any time for rather short deadlines with losses, perhaps minimum for you.
what should pay attention at the choice of investment real estate to :
, the price which was How declared by the seller is adequate to the market and in what reasons for rejection from the average market price (inflated price, as well as underestimated has to cause in you suspicions, but not attacks of euphoria).
the Growing market value of real estate - only the reverse side of inflation, and the real income which you will be able to receive is most likely only a rent.
When the increase in prices for real estate exceeds inflation growth - it is a disturbing sign that in the market most likely the price bubble becomes ripe. And at such moments it is necessary to understand accurately for himself who you are are an investor or the speculator (the investor does not pay attention to correction of the prices and keeps means in an asset, the speculator - seeks to sell on a maximum).
Acquisition of a real estate object at a construction stage for the purpose of its further resale before commissioning of the object by a cedation of the right is not operations with real estate, but speculation with use of derivative tools with the raised risk degree, namely - derivatives that is certainly very profitable, but also very risky business, namely - speculation which considerably differs from investments what especially experienced professionals of the market speak about.
legislation Subtleties. So, for example, in the majority of the countries it is possible to sell a real estate object without payment of a tax on the got profit only in several years, and terms, as a rule, rather big.
Proceeding from bases of the technical analysis, it is not necessary to buy real estate which reached the price peak as the peak is followed, as a rule, by recession. On falling it is not recommended to buy too as nobody knows falling depths.
, the political and economic situation in the country chosen for investments is How stable.
, local banks are How steady in it.
, How developed in the country a mortgage and on what conditions and to whom it is given.
Transport availability (public, roads, stations).
Infrastructure (schools, kindergartens, sphere of entertainments and life, health service, shops).
Quality and technical evaluations of objects of investment - water, heating, conditioning, sound insulation, quality of construction, finishing, furniture, the adjacent territory, the provided services (protection, cleaning, service - sanitary, the electrician, etc., communication (the Internet, phone), the gym, a view from the window, etc.).
whether you Have an opportunity to control the investments (you, the authorized representative, management company on your assignment, etc.).
whether you Have an opportunity to protect the investments (in court - time, means, communications, knowledge of language and laws, etc.) .
If I gave you the chance to understand in general about complexity of this process, I consider the task executed. Successful to you investments, friends!