Top 5 Considerations for New Investors Seeking To Buy Overseas Property

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Over the years, real estate has been pushed as a better investment to stock. With so many differences as wide as the fact that real estate is a solid, physical good while stock isn't, it's hard to see the similarities between both types of investments. An investment in real estate is similar to stocks, in the sense that, there are both negatives and positives, there is an amount of risk involved and there are no guarantees. However, comparing real estate and stocks over many decades, real estate has performed better in generating consistent wealth and long term appreciation for millions of people. But as mentioned earlier, there are no guarantees. Here are five important factors new investors should consider when buying a home abroad.

Factors To Consider When Buying A Home Abroad

1. Availability of good real estate agents. Hiring a good real estate agent is the single most important thing you'll do as a foreign property buyer. Hence you need to verify that these agents can deliver excellent service. This service will usually include post-purchase assistance. Your real estate agent should be able to help with service connections, home improvements and other requirements after the sale. A good real estate agent will also provide practical help and support. So ask questions and verify what your agent can help you with to ensure smooth purchase process.

2. Insurance. Few things done right will save you the hassles when buying property abroad. One of those things is getting coverage. This is particularly true of vacation home owners who might have to leave the property in someone else's care and investors dealing with tenants. Building insurance is a must for foreign property owners in some countries e.g. South Africa. But don't stop there! Get insurance for the contents of your home. While seeking insurance cover, check around. If you can find an insurance company with base in your home country, then go for it. If not, then settle for local insurers.

3. Property improvement. It's a given that you might not like some of the props and arrangement of your new overseas property. So, many new investors go along with renovation ideas and plans. However, home improvements can eat up your savings. Hence, before buying any overseas property, get a reputable appraiser. Don't expect to meet the property in tip-top shape. But if you'll be spending too much on repairs and renovations, then it's a bad deal.

4. Security. How secure is your new property? If there have been record of burglaries in the house, then having a big padlock might not cut it, you might need to move on. You need to determine how secure the area is. Your real estate agent might not disclose this information, so personal research is necessary.

5. Climate. You don't want to buy in an area prone to floods. Regions of extreme hotness or coldness are also out of the question. Look beyond how cheap the property is and get a house in an area you'd be able to 'survive' in.

 

These are just some basic factors you already know you should consider. But it's easy to take them for granted.

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5 cities with the highest cross border real estate activity in 2018

  • 26, October 2023

Asian investors are the largest group snapping up foreign property according to research. But in which cities are they investing? And why?

 

As more people's attention is being drawn to real estate as an asset class, a larger number of people are seeking out foreign property. 2017 saw a large number of Asian investors enter the market sweeping up properties from the US to Canada straight to France. Recently, contrary to expectations, their attention is being drawn to residential and commercial properties in London, UK.

 

Propertywire's first quarter of 2018 stats https://www.propertywire.com/news/global-news/londons-commercial-property-market-top-draw-international-buyers/ reveal that overall about 5.6 billion pounds of foreign money was invested in London, with Asian investors contributing about 4.4 billion pounds or 65% of the total investments. The next highest was Hong Kong at 5 billion with Paris following from behind at 1.9 billion pounds.

 

If you're looking to invest in real estate, one of the major factors you would need to consider is liquidity. Based on liquidity, these are the top performing cities for cross-border real estate investing in 2018. This is indirectly influenced by population growth, employment growth and usually followed by an increase in home values or strong rental yield. 

 

•   New York, USA: Brooklyn and Manhattan are two of New York's favorite hot spots for foreign real estate investors. The activity of Chinese, Russian and Middle Eastern real estate investors, paying cash on high-end properties has consistently driven New York City’s real estate price upwards. With a population growth that hasn't slowed down, New York City real estate not only offers liquidity but stability for real estate investors.

 

•   London, UK: Despite Brexit, London leads the way as a favorite for foreign real estate capital. In the aftermath of Brexit, the attention to both London's commercial and residential real estate has been largely driven by a weaker pound and more affordable housing. Foreign real estate activity in London is largely funded by equity funds, institutional investments, and private capital. Units in the mid-range segments have been most popular among buyers. Presently, though, the government is setting tax constraints on foreign real estate investing as the cost of home ownership increases.

 

•    Hong Kong, China: In 2017, Hong Kong was named the "most luxurious" prime housing market for the second year running by Christie's real estate https://www.christiesrealestate.com/eng/sales/hkg . Hong Kong's housing market has shown little cooling with 4.4 billion pounds of foreign money spent by foreign investors in 2018 first quarter. The heated market in Hong Kong, as experts pinpointed, is a major reason for increased residential housing prices all through China.

 

•    Paris, France: The French economy is seeing a boom with the number of foreign investment activity reaching a 10 year high last year. The French economy exceeded expectations with a 2.2% growth, a large number of jobs created and strong real estate activity. Also with fairly stable mortgage rates, many investors are picking up properties in Paris and Bordeaux. Beyond 2018, analysts speculate the South of France will experience a strong housing demand.

 

•    Los Angeles, CA: Los Angeles may soon replace Hong Kong as the no 1 most expensive city for expats. Currently, the average price of a luxury property in Los Angeles is $2.5 million. With population growth, increasing disposable income and a thriving tech sector, Los Angeles real estate offer stability and liquidity for investors. However, housing is in short supply. A situation leading to soaring house prices. With population growth and a great economy, Los Angeles is a great option for single-family investors seeking high rental yield.

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20 Highly Effective Real Estate Advertising Slogans to Get Better Results

  • 14, September 2023

A memorable real estate slogan can keep you top on the minds of prospects. Your slogan defines your business, forms an element of all your marketing materials and can be what people associate with you. For Scott Geller, a RE/MAX realtor in Jamison, Pa, with the slogan "Scott Geller, the home seller",  some people probably think his slogan is his real full name. The name and occupation awareness brought him so much business that after a while, he didn't need to advertise to the general public, he had enough repeat customers and referrals.

 

A clever, memorable slogan forms part of your identity. While a good slogan can transform your business; a bad one can harm your business and reputation. Hence you should put more effort into developing the right slogan for your real estate business. Here are a few things good real estate slogans can do for your business.

 

1. Help you appeal to customer emotions

2. Highlights your customer service or care.

3. Reflects your business's personality and character.

4. It is memorable; stays long in the mind of prospects.

Let's look at twenty great real estate slogans and some reasons why they are effective.

 

20 EFFECTIVE REAL ESTATE SLOGANS

 

One important thing slogans and taglines do is helping to distinguish you from the competition. According to Dictionary.com, a slogan is a distinctive cry that separates you from everything else. So, the most important thing you want to maintain is the individuality of your slogan. Here are 20 real estate slogans that work. You can put your creative gear in motion and use these examples to craft something effective for your real estate business.

 

1. Sell for More. Buy for less.

2. A Track record that speaks for itself.

3. The Realtor for You.

4. Turning Dreams into Reality

5. Doing Everything but the packing

6. Your Dream Home awaits.

7. Helping San Diego find where to live.

8. Experts in the local market.

9. Your concern is my priority

10. The agent that works harder after the closing papers are signed.

11. A tradition of (excellence, trust, service).

12. A cut above the rest.

13. Helping New Yorkers move since 1983.

14. I'm never too busy for your referrals.

15. Going above and beyond

16. Beautiful L.A homes

17. Helping clients get more home for less money

18. Beautiful places to live.

19. Helping you close for less.

20. Turning transactions into relationships.

 

What these slogans have in common are that:

1. They focus on the client. Your prospects do not care about you or your business. They want to know how you can help them. Having a real estate slogan that clearly states how you can help them gets you points. Keep your slogans around your clients and you'll keep them around longer.

2. Non-generic. Although you should look around and examine trends in your market and incorporate these in your real estate marketing, don't forget to differentiate yourself from the crowd. Is your slogan helping you stand out?

3. Memorable. Effective slogans have a musical memorability around them. Quality slogans are short phrases that are easily remembered.

Having a high quality real estate slogan will keep you in the minds of clients for a long time.

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3 Steps to Determine the Fair Market Value of Foreign Real Estate

  • 01, August 2023

You don’t want to pay excess on a property. So, it’s important to know what a home really costs on the equity scale

Real estate whether home or abroad is a substantial, long-term investment. It is therefore imperative that you research various countries and neighborhoods before choosing one to invest in because economists agree that there is an opportunity cost to investing in a particular property.

Your research should include the existence of changing political and economic scenarios, as these would have profound impact on the housing market, especially influencing central bank rates and lending policies.

Factors Affecting Market Value of Foreign Real Estate

Location is critical. Apart from the real estate conditions existent in the country, you don't want a place with high crime rate and bad transport system. But looking ahead, you have to examine the profitability of your investment. Home appraisers looking at homes consider features like property age, lot size, internal square footage, number of bedrooms and bathrooms, amenities and overall condition. Hence the first step in determining your home's market value is taking an appraiser’s glasses and looking at the home objectively, writing down the principal features of your home.

How to Determine Market Value of Foreign Real Estate

Valuing a home is not an exact science but here are some things you can do to make a ‘scientific’ guess on the fair market value of a property abroad.

1. Check out comps.

Find four or five comparable homes in the area that have sold within the past six months. A local agent should be able to help you with that data. Your research on comparable homes (comps) will give you a good indication of what your intended property might be worth. Comparable homes should be roughly the same size, construction, age and style with the same number of rooms, layout and other features. You want to identify the prices at which these properties sold and how fast they left the market.

2. Calculate the rate per square foot.

For each of your comps, divide the selling price by the square footage of the property. This gives you a price per square foot or PPSF. Find the average value of these homes by adding the PPSF figures and dividing by the number of comps you are using. For example, suppose it has the following compositions:

Property A is 2,000 square feet and sells for $ 420,000. The PPSF is $ 210.

Property B is 2,200 square feet and sells for $ 480,000. The PPSF is $ 218.

Property C is 1,900 square feet and sells for $ 390,000. The PPSF is $ 205.

Property D is 2,000 square feet and sells for $ 475,000. The PPSF is $ 237.

The average price per square foot is $ 217. Multiply this figure by the number of square feet of your home to get a rough idea of ??the market value of your home.

3. Consider the special qualities of your home.

While the PPSF gives a benchmark, it does not take into account the unique features that could raise or lower the value of your home. Improvements like a new bathroom, kitchen or siding tend to add value; On the contrary, it is likely that a home in poor condition will have a lower value than a well-maintained property. There is usually a wide variety of prices per square foot based on these factors. Ultimately, you have to decide if your home is worth more or less than the average PPSF in your neighborhood.

 

 

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