Buying real estate abroad is a profitable and correct investment in many ways. Whether it is having a rental income based on foreign currency in a economically stable country or benefiting from the high-quality education opportunities provided by that country are the main reasons that make this investment model attractive.
Making such an investment in a country whose language and laws you do not know can sometimes be problematic, and many people refrain from making investments because they are afraid of these risks or they cannot take advantage of the opportunities that arise by postponing them to a later date.
In this article, we will talk about what you should pay attention to when investing in real estate abroad.
According to the reciprocity law that went into effect in 2012 to own real estate abroad, Turkish citizens can buy a house in any country that is suitable. However, the purchase can be made within the framework of the acquisition rules of that country, which varies according to each country. If there is no different request required by the laws of the country to be purchased, a valid passport copy, photo, and a power of attorney prepared by a notary are sufficient.
What to do before buying real estate abroad?
First of all, we need to ask ourselves the following questions and find appropriate answers by researching.
1- Which country should I buy real estate in?
One of the most important criteria for real estate investment is the country in which you will make the investment. The country’s economy and stable structure are crucial in terms of the future of your investment and its returns.
Be sure to review the notes and reports provided by international rating agencies about the country. Keep in mind that major holdings and investment firms also decide whether to invest in a country by examining these reports.
Make sure to have information about general financial issues such as the country’s currency, bank interest rates, and credit lending conditions. Remember that the country’s language, education system, legal system, sources of livelihood, unemployment rate, etc., are topics that you and your family may need in the future, and you must have a general knowledge about them.
2- The importance of location
Do not forget the importance of location, which is the most well-known and oldest rule in real estate investment success. In every country, there are locations that are trendy and will always appreciate in value. Properties in these locations will always guarantee the highest return on investment in terms of value appreciation and rental income. Even in the event of a crisis in the country, properties in these locations will be least affected, so your investment will not be at risk.
Additionally, features such as being waterfront, having a magnificent view, proximity to a known and popular entertainment or shopping center, cultural and historical attractions, or a sports club enhance the value of the property.
3- Making a profit when buying and finding the right price
Every real estate property is a smart investment when a profit is made at the time of purchase. Therefore, extensive market research and finding the actual market value of the property on that day are very important. Expecting a profit from a property purchased above its value will result in waiting too long for making profit and this will not be a smart investment. It is necessary to conduct thorough research, compare the purchase and sale prices of similar properties in the surrounding location over the past years, and work with correct and professional real estate consultants in this regard.
4- The importance of transportation and infrastructure
It is important for the real estate property you are considering to invest in to be easily accessible and have sufficient infrastructure in both the property and the region.
Proximity to airports and train stations is an important factor that affects the value of the property and provides convenience for you as the user. Similarly, make sure to check whether both the infrastructure and the nearby schools, universities, and social amenities are sufficient.
5- Expert report
Do not forget to ask for an expert report on the property you are considering to purchase. If the seller does not have one, ask them to get it done, or if you have decided to purchase, have the report done yourself. Make sure to have the structure and infrastructure of the building thoroughly inspected to avoid any unpleasant surprises after the purchase. Being informed in advance about the repairs and maintenance that need to be done after the purchase and controlling your budget for this purpose can help you negotiate with the seller regarding the cost of the necessary work.
6- Working with the right advisors
During your research on all of the above topics and when you reach the point of making the purchase decision, it is essential to have a small team to work with. This team should ideally include a real estate consultant, a lawyer, and a financial advisor (and sometimes, depending on the situation, an interpreter). Make sure that these individuals are professional, focused not only on getting paid for their services but also on guiding you correctly. When selecting the right team and individuals, be sure to check their references before starting to work with them.