Who Else Wants to Move Abroad? 5 Tips for Moving Abroad

20230526051644_647040bcbea7d.webp

Follow my blog with Bloglovin

 

Moving broad for work or fun is both exciting and frightening, here are some things you should know

An ancient quote says, 'those who travel across the seas only change their skies, but not their souls", nowadays the opposite is true. Studies show that people who live abroad find it easier to engage with other cultures. Moving abroad gives you more perspective on life. But it's not easy to take the first step. The thought of leaving your family and friends can be distressing coupled with the fact that you may not know anybody in the new country. However, it's an opportunity to leave your comfort zone and explore different cultures and issues you haven't seen before.

But there are challenges you'll encounter. Paperwork can be exhausting; The stress of trying to blend into a new environment, especially when you're not fluent in their language; The guilt that comes with leaving your family and friends, which they may not initially understand. But facts prove that the distance could actually strengthen your relationship. So if you're tired of the same old routine and want some more adventure in your life, you'll find that you can master the skill of dealing with the challenges that come with living in a foreign city. Whether you're a millennial moving to another country for work or a retiree just seeking adventure, these tips will help make the move as painless as possible.

Tips For Moving Abroad

1. Make some research. You already know this is important. It's a no-brainer. Know a bit about the political climate of the country, the economic climate, geography and important public figures. Also learn something of the culture, history and staple foods.

2. You don't really need much stuff. Unless you're running away from your home country, never to return, you'll find that excess luggage is just what it's called; excess luggage. It's a given that there will be stores and large shopping outlets in the country you're moving to. Also leaving back the excess stuff might be a way to dispose of materialism and reprioritize what's important in your life. However, never forget to take the important stuff. Don't forget to take your favorite 'Abercrombie' shirt or else your mind might not leave home.

3. Don't expect to settle in at once. It might take at least three months before you fully integrate with the culture of a particular place. You might find it hard to make friends during this time. So, don't rush and don't feel like you've to immerse completely while trying to socialize but stretching your limits of comfortability. During this time, you can observe. Also, maybe, get some interesting 'alone' activities to keep it fun.

4. Experience new things. Travelling abroad and not trying new foods, people and customs is like going to school and not learning anything. Don't be afraid to experience new things. Also, don't limit yourself to the big cities. If you travel to Spain, don't spend all your time in Madrid. Check out the smaller town, you'll learn and experience much more.

5. Make local friends. As a new property investor abroad, your local friends will be able to assist you a lot. They'll give you practical information and might even put in some legwork for you. Generally, you're not moving abroad to hang out with fellas from your home country. Therefore, mingle with the locals.

 

 

 

Previous Post

4 Questions You Need To Ask Before Buying Luxury Real Estate Abroad

Next Post

5 Inexpensive Home Improvement Tips To Improve Your Homes Value

Related Posts

20230526050841_64703ed9afd16.webp

5 signs youre cash flow negative on your vacation rental property

  • 17, October 2023

Spending money consistently on a cash flow negative rental isn't smart. It might be time to change your strategy.

 

Vacation rentals are a great way to make extra income from your property investments. Short term rental provider, HomeAway https://www.homeaway.com/info/getting-started/income reports that the run-of-the-mill vacation rental property owner nets $11,000 a year.

 

But if you consistently have to spend rental profits on roof repairs, vacancies, regular maintenance, bad tenants etc, you probably have a cash flow negative property on your hand. And there are two approaches to dealing with this problem. You can either wait it out and hope things will somehow change or kickstart an exit strategy to move on.

 

While cash flow doesn't have to be a decisive factor, especially when you have a vacation rental property in an up and coming neighborhood with strong potential appreciation rates. Many times, you might be spending more than you bargained for with your rental. And the faster you discover this, the better.

 

This article outlines five signs of negative cash flow vacation rentals but before we proceed let's see a simple formula for measuring cash flow on an investment property:

 

Cash Flow = Total Income (Application fees, Rent, etc.) - Total Expenses (Monthly mortgage (if applicable); General Maintenance, Electricity, HOA, Property Management, vacancies etc.)

 

As a rule of thumb when buying an investment property, it is wise to set aside an emergency fund to cover at least first six months of expenses. So let's dive right in and see some of the signs to watch for.

 

1. High vacancy/Low occupancy rate in a location: What's the occupancy rate for your neighborhood? An important sign of a cash flow negative property is high vacancy rate in the neighborhood. According to Turnkey VR https://blog.turnkeyvr.com/much-money-can-make-vacation-rental/ specializing in the management of turnkey vacation rental homes, "Occupancy rates for vacation rentals can be all over the map. For instance, a vacation rental home in a big city might create more demand than a rental property at a seasonal location like the beach". Location is key when buying real estate, especially for investment. Hence it's wise to spend time researching a neighborhood before taking the plunge.

 

2. High Maintenance property: Are you doling out high monthly fees for property maintenance? Then you might be dealing with a cash flow negative property. A 30-year-old property might offer a great deal but when you have to spend considerable time and money on maintenance and fixes monthly, you have to ask yourself if it's worth it.

 

3. Declining Rental Property Market: How strong is the rental property market? There is a strong correlation between a thriving property market and low vacancy rates. Many times a declining rental market is a sign of underlying economic issues, most times accompanied by high unemployment rates and slow growth. Sticking around in such a neighborhood would be unwise. Unless you're confident about a significant development in the neighborhood in coming years.

 

4. High Property Taxes: Did property taxes go up? Taxes can get tricky, especially when you're buying as a foreigner. However, when sudden tax changes are eating up your income, then you have a negative cash flow property.

 

5. Problem Tenants: Are problem tenants eating up your profits? You have two options, regarding managing your rental property. You can either hire a property management company, which means more expenses but better management. Or you can just ride it solo. While this offers you the chance to take an active role with your property, dealing with problem tenants (tenants who break things, tenants refusing to pay rent or pay promptly, tenants causing disturbance etc.) is a major headache and can eat into your profits.

 

Hence the importance of having a screening process that's hard to bypass. However, if you deal with problem tenants a lot, it might be time to consider setting an exit strategy in motion.

 

You can take advantage of short-term rental cash flow with sites like HomeAway and AirBnb. While tenant turnover rates can be high in the short term, short term rentals can be profitable, especially in a popular destination such as a ski resort or beach community.

By Bebuzee Admin Read More
20230526052122_647041d211733.webp

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.

 

 

By Bebuzee Admin Read More
20230526052249_64704229a937e.webp

Tips To Get Mortgage for Your Overseas Property Purchase

  • 26, July 2023

Your overseas property purchase doesn’t need to be stopped by financing. You can apply for a mortgage. However, getting mortgage for foreign property isn’t like getting a mortgage at home. This article considers some ways to tip the balance in your favor.

Why bank financing isn't always available for overseas property

When it is available and comes with no string attached, bank financing is the best option to buy foreign real estate. But alas, it’s not usually available. In many markets, it's hard to get loans as a foreign buyer. In Colombia for example, banks don't care if you're a legal resident, as long as you're a foreign buyer, you're not getting mortgage. It's easy to see why this is so. A foreign buyer isn't tied to the country; he can up and leave at any time, taking the bank's money with him. Banks wouldn't want to take this risk. Hence the hassles of getting mortgage for foreign property. This is one of the things stopping passionate investors from traversing foreign lands.

Resident and non-resident bank financing

So, let's say bank financing is available; it most likely would come in one of the following categorizations:

Ø  Resident financing: Except for countries like Colombia, most local banks would treat your loan application as they would treat that of a citizen if you're a legal resident. You'll have to prove credit worthiness just like any citizen and may not have to go through any other process or requirements. This is called resident financing.

Ø  Non-resident financing on the other hand is difficult to secure. Wherever it is available (countries like France, US, Mexico, Panama, The Dominican Republic, Portugal and New Zealand), it comes with a number of restrictions and requirements. Also, the rate you get may not be favorable, except in France, where it's possible for a non-resident with good credit to access a 20-year mortgage at a rate of just 2.25 percent.

Tips To Get Mortgage When Buying Foreign Property

So, here are some tips to help you secure mortgage when buying foreign real estate

1. Don't go it alone.

Even professional property investors get professional assistance when buying foreign property; this could be through experienced local agents or friends. They understand that investing overseas is a much different ball game. If you're in the UK, you can seek the help of an agent selling property overseas through the following bodies:

  1. The Association of International Property Professionals (AIPP) and
  2. The National Association of Estate Agents International

2. Find a bank that has a presence in your country and the country in which you want to buy a property.

According to Glenn Carter, a Canadian investor who works for Condo Capital "The problem is a foreign credit score does not count for anything, it's just like having no credit score”. This means the interest rates you’ll be quoted will be that of someone with no credit. But a bank with presence in your home country will offer favorable rates. "The interest rate I was quoted from a US Bank was 9%, versus the 3% we got from a Canadian bank with branches in the US.” Carter says.

3. Get an Agreement in Principle

Before signing any contracts or paying deposit, get an Agreement in Principle. Learn more about Agreements in Principle. If you're planning on getting finance on the house, make sure this is explained in the contract, and seek an 'opt-out clause' if the loan is not agreed. This will ensure any first deposit paid is refunded.

 

 

 

By Bebuzee Admin Read More