Buying Property Abroad

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BUYING PROPERTY ABROAD: HOW TO CURTAIL RISK WHEN MAKING OVERSEAS PROPERTY INVESTMENTS

Many people are buying property abroad today because of the investment potential. The price of foreign property can be especially attractive when exchange rates tip the balance in favor of a prospective buyer’s currency. Imagine buying a beachfront house in Brazil for $50,000 when you’d spend $400,000 for the same house in a place like Orange County. Buying property abroad is a way to get actively involved during retirement.

If you don’t want a hands-on management, this type of investment would still generate passive income for you, an income not depending on the US dollar, denominated in another currency. There are reputable property management companies that can help you take care of your new investment and help you make consistent rental income from your investment. The fact that many Americans are not preparing adequately (or even preparing at all) for retirement means many Americans are not living out their dreams after retirement. “About 60% of Americans have no savings in retirement accounts like 401(k)s or IRAs,” reports Business Insider. The Employee Benefit Research Institute (EBRI) estimates the shortfall in retirement savings to be at $4.13 trillion for heads-of-households aged 25 to 64.

One of the reasons why many Americans lack sufficient retirement savings is that the traditional means of saving are unreliable, according to USmoneyreserve.com. If protecting your retirement is important to you, buying property abroad can help you get the ideal retirement and offer the kind of security that other asset classes cannot provide.

Moreover, there are wasteful aspects in some markets that haven't worked themselves out yet, and those inefficiencies can work further bolstering your good fortune. For example, there are some markets in the world with restricted wellsprings of capital where people need money. Without access to easy credit, they frequently offer their property at a much lower cost to have fast access to money.

Furthermore, when you spend money on overseas property you do not just get the benefit for those market inefficiencies, you additionally have the advantage that a lot of shareholders are so concerned about risk that they create no real hazard, nor create any competition. But even though overseas properties offer a chance to diversify your investment and can help you get the retirement of your dreams, there are some risks. Here are some tips to help you curtail risk when buying property abroad.

 

1.     Read the books.

The key to successful property investments overseas is to do your homework and not cut corners. By all accounts, read books about the country you are considering buying an international investment property and read relevant forum posts online but do not get sucked in by the sellers and never overlook the power of local knowledge. Even a simple walk around the area can give you a great insight into the events and settings that take place on a daily basis, giving you a real feel for the place.

2.     Beware of overseas investment property in "emerging markets".

This term can be used to dress up areas of neglect. Look around for signs such as closing shops and boarded up houses, as these may suggest a struggling economy. If you come across something else that you do not feel at ease with, do not go with the property investment. Foreign buyers should feel 100% safe in the area before taking the plunge. Likewise, if you look at a series of new developments that are beginning to emerge, this could be a sign that the real estate market in the area is about to take off.

3.     Do not leave yourself at the mercy of the laws of the country when buying property abroad.

Buying investment property on foreign soil requires the advice and guidance of a local lawyer. Before you sign on the dotted line, make sure you are accredited and credited as well as fluent in English and the language of the country you wish to purchase.

4.     Don’t take the risk of using cash.

Using a bank with an office abroad to conduct large transactions is always the best. Foreign investment properties and those that sell them must be approached with caution and due diligence.

It’s normal to be apprehensive when buying property abroad for the first time or trying anything new. And yes, the risks are there but to be successful in property investing, you mustn’t let that hold you back.

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3 Types of Content Real Estate Agents should consistently Blog About

  • 02, September 2023

The most important aspect of agent-client relationship is communication. A house seller or buyer can find it stressful dealing with an agent or buyer who is not a good communicator. An agent that stays in constant contact with clients and answers their questions proves his or her proactivity.

 

Yes you need to let buyers and sellers know where they stand quickly so they can move on to another property or potential buyer. Real estate is time sensitive. Buyers and sellers need the right information and need it fast. Hence, one of the qualities of a good agent is the ability to give the right information to the right kind of buyer at the right time. What an experienced agent might deem insignificant information might be important information to clients who are new to the real estate game. Putting the right information in front of clients communicate that you're an agent who puts clients first.

 

It's the responsibility of a good agent to sort out what clients need to know and provide this information. Hence it's important that an agent has a well updated website complete with valuable information. You don't really need to pressure your clients with too much information. Just the right information will do. Here are five content types that real estate buyers and sellers find valuable.

 

REAL ESTATE CONTENT TYPES THAT WORK

 

When correctly done, real estate content marketing can be a game changer for your real estate business. You have the chance to attract thousands of new leads through well-researched, helpful content. This is why effective real estate bloggers put a lot of plan and effort into creating the right content for their real estate website. Here are some of the real estate content types you should be posting for your real estate business.

 

1. Market Reports. Writing a recap of real estate activity in your community for the month shows you as a knowledgeable real estate agent in the community. Buyers and sellers want to be informed about the real estate market in their area of residence. Even if they aren't going to take action immediately, when you post fact-based market reports, they know whom to approach for questions. Also, Google ranks market reports high. Since few realtors are posting them, your posts have less competition.

 

2. Local Community Information. A local community guide includes details about a neighborhood such as detailed information about the local real estate market, local economy, housing and population, local school information, parks and restaurants and attractions. This type of content is important because it increases your real estate website's SEO value and helps the area residents see that you have strong knowledge of the community.

 

3. Home buyer and seller tips. Both buyers and sellers have a lot of questions on their minds about real estate. Providing helpful information on your site can be timely and help you gain more leads. However, when covering the questions, your visitors would find it much more helpful if you cover the topic in 'extreme' detail and they'll love you for it.

 

Cold calling for sale by owners or door knocking is old school. A much better way of gaining trust and new leads is through helpful content.  When you consistently post content that real estate buyers and sellers love, you'll start reaping the benefits of real estate content marketing.

 

 

By Bebuzee Admin Read More
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Whats the impact of Brexit on London real estate?

  • 25, September 2023

While some analysts believe Brexit has made the UK housing market porous. Others believe Brexit will pave way for a stronger housing market in coming years

 

The interaction between real estate and foreign policy is clear cut and this is more than proved by Brexit. As the March 2019 final Brexit negotiations approach, a precursor has been set, which might influence London's real estate market in coming years.

 

A recent report from international property firm, Knight Frank, puts London as the top favorite destination for global capital. This is due to the fact that London still presents liquidity and stability, factors attractive to investors.

 

Nick Braybrook, Knight Frank London's head of capital markets says ‘Despite the political turmoil surrounding the UK with Brexit, London is once again the most liquid real estate market in the world. It is more popular as a home for international investment than Paris Central, Manhattan, Munich, and Frankfurt combined,’.https://www.propertywire.com/news/global-news/londons-commercial-property-market-top-draw-international-buyers The influx of foreign investors particularly Asian buyers could be due to a weakened pound sterling, which has led to a slow growth in home prices.

 

According to an article by FT https://www.ft.com/content/87b1f284-1452-11e7-80f4-13e067d5072c "home prices have seen slow growth since the 2016 Brexit announcement. In May 2018, prices fell by 0.4% in London from an annual rate of 12% in 2016."

 

The pre-Brexit rise in home prices, which were growing at above 10 percent year over year before the EU referendum has given way to slower price growth. 2018 so far has seen a price growth of only 3% all over the UK. For millennials and London residents, the pre-Brexit rates had kept them on edge with staggering prices. Now the current fair price increases and a residential market that is more or less slow present better odds of landing favorable home deals.

 

Currently, London's economy is great. There is a low unemployment rate and inflation rates are down. Speculators, however, believe that the thriving economy will lead to higher interest rates soon. This means that first-time homebuyers would need to pay higher down payments on mortgages.

 

And even though foreign investment has decreased in most sectors, due to the uncertain climate surrounding BREXIT, real estate foreign activity is at its peak. Even the tax hikes introduced on foreign landlords, renting out their houses, hasn't diminished London's foreign real estate activity.

 

2019 will definitely be an interesting year for the UK's housing market, depending on the outcome of the final negotiations between the EU and the UK. However, an abrupt Brexit will do no one any good. Mark Carney, the governor of the bank of England has warned that a "disorderly" Brexit will lead to interest rate hikes which might greatly affect the property market.

 

According to FT, Theresa May’s government is actively seeking to avoid such a scenario. The prime minister has softened her position on Brexit in recent months and has agreed to a transition period that would maintain much of the status quo until at least 2021.

 

What changes do you think might take place before 2021? Leave your thought

By Bebuzee Admin Read More
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The Real Estate Market in January 2025: A Comprehensive Overview

  • 21, January 2025

Understanding the Trends and Influences Shaping the Market

As we step into the New Year, the real estate market in January 2025 presents a fascinating tableau of trends and influences, reflecting broader economic conditions and demographic shifts. This month has already set the tone for what property buyers, sellers, and investors can expect in the coming months.

Market Trends

Housing Prices

January 2025 has seen a modest increase in housing prices across most urban areas, continuing the upward trend from the latter part of 2024. Factors contributing to this rise include ongoing demand for residential properties, coupled with limited supply. Major metropolitan regions like New York, Los Angeles, and Chicago have experienced notable price hikes, while smaller cities and rural areas have seen more moderate increases.

Interest Rates

The Federal Reserve's recent decision to maintain relatively low interest rates has sustained the affordability of mortgages, encouraging buyer activity. However, whispers of potential rate hikes later in the year have caused some buyers to expedite their purchasing decisions, adding a layer of urgency to the market.

Influences on the Market

Economic Conditions

The national economy has shown signs of steady growth, with low unemployment rates and rising wages contributing to consumer confidence. This economic stability has bolstered the real estate market, as more individuals and families feel financially secure enough to invest in property.

Demographic Shifts

Millennials, now entering their peak home-buying years, continue to drive demand for residential properties. This generational shift is particularly evident in suburban areas, where younger buyers are seeking affordable housing options with access to good schools and amenities. Additionally, the increasing trend of remote work has allowed more people to consider relocating away from expensive urban centers to more affordable regions.

Regional Insights

West Coast

California remains a hotspot for real estate activity, with cities like San Francisco and Los Angeles experiencing significant price surges. The tech industry's ongoing expansion in the Bay Area continues to attract high-income professionals, driving demand for luxury homes and high-end apartments. Meanwhile, more affordable areas in the Central Valley and Inland Empire are witnessing increased interest from buyers looking for cost-effective alternatives.

East Coast

New York City's real estate market has rebounded strongly from the pandemic-induced slump, with both residential and commercial properties showing robust performance. The city's appeal as a cultural and financial hub continues to draw investors and homebuyers alike. In contrast, smaller cities along the Eastern Seaboard, such as Raleigh and Charleston, offer attractive opportunities for those seeking a slower-paced lifestyle without sacrificing urban conveniences.

Midwest

The Midwest's real estate market remains stable, with cities like Chicago, Minneapolis, and Detroit witnessing steady growth. Affordable housing prices and strong job markets in these areas make them appealing destinations for both young professionals and families. Additionally, the region's focus on revitalizing urban centers has spurred interest in downtown properties and historic neighborhoods.

South

The Southern real estate market continues to thrive, driven by population growth and economic development. Cities such as Austin, Nashville, and Atlanta are experiencing rapid expansion, with new residential and commercial projects springing up to meet demand. The region's warm climate, lower cost of living, and business-friendly environment make it a magnet for both domestic and international buyers.

Challenges and Opportunities

Supply Constraints

One of the significant challenges facing the real estate market in January 2025 is the persistent supply constraints. The construction industry is grappling with labor shortages and rising material costs, which hinder the ability to meet the growing demand for new homes. This imbalance between supply and demand contributes to the upward pressure on housing prices.

Technological Advancements

On the flip side, technological advancements are presenting new opportunities in the real estate sector. The adoption of virtual reality (VR) and augmented reality (AR) technologies allows potential buyers to take virtual tours of properties from the comfort of their homes. Additionally, blockchain technology is streamlining the transaction process, making it more transparent and efficient.

Sustainability

Sustainability continues to be a crucial consideration for both developers and buyers. The demand for eco-friendly homes with energy-efficient features is on the rise, driven by increasing environmental awareness and the desire to reduce utility costs. Builders are incorporating sustainable practices and materials into new projects, catering to this growing market segment.

Looking Ahead

As we move further into 2025, several factors will shape the real estate market's trajectory. Potential changes in interest rates, evolving economic conditions, and demographic trends will all play a crucial role in determining market dynamics. For buyers, sellers, and investors, staying informed and adaptable will be key to navigating the ever-changing landscape of the real estate market.

In summary, January 2025 sets a promising yet complex stage for the real estate market. With rising prices, robust demand, and technological innovations, the sector is poised for continued growth. However, challenges such as supply constraints and economic uncertainties necessitate careful consideration and strategic planning. As always, those who can anticipate and adapt to these shifts will find the most success in the vibrant world of real estate.

By Bebuzee Team Read More