International Real Estate for Investment and Retirement

8/6/2019 International Real Estate for Investment and Retirement

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International Real Estate

for Investment and Retirement

A Primer and Guide

to Top Resources for

Investing in International Real Estate

A Market Brief

by

Steven Kim

MintKit Investing

www.mintkit.com

2011 MintKit.com
http://www.mintkit.com/http://www.mintkit.com/


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Summary

An investor in international real estate has to consider a host of issues in selecting a

property. To this end, the crucial factors span the gamut from global trends in real estate to

local conditions in the target neighborhood.

This article presents a lineup of large-scale trends in the marketplace as well as key issues

for the investor. A second, and related, task is to lay out a palette of pointers for avoiding

common mistakes. A third feature involves a review of the top resources for investing inthe property sector in far-flung countries.

* * *

Keywords:

Real Estate, Realty, International, Global, Markets, Investing, Retirement, Planning,

Strategy, Trends, Housing, World, Demographics

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* * *

The winds of globalization have swept up everything in their path, including the most local

of all things: real estate. In a slew of hotspots round the world, the prime properties

compete with similar offerings on distant shores.

In the modern culture, a growing throng of globetrotters size up the projects in a particular

country in relation to competing choices in remote locales. The cosmopolitan view has

become the norm whether the wheelers and dealers focus on commercial properties such

as office buildings, or residential units as in apartment blocks.

For the lonesome individual acting on their own, an initial sally into the property market

usually takes the form of a compact dwelling. The vehicle of choice is an apartment or a

house of modest size.

A Home as a Shelter and an Asset

The groundswell of interest in foreign properties is a natural outgrowth of the demand for

real estate back home. The reasons for buying a property range from sentimental appeal

to financial payoff.

To begin with, a lot of folks want to have a place to have and to hold. For this reason, its

not surprising that myriads of souls opt to purchase rather than rent a property in spite of

the additional load of paperwork and upkeep required.

Given the size of the price tag, the dwelling comes to represent a huge investment for the

homeowner. In fact, real estate represents the lions share of wealth for the global

population.

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Another reason for the popularity of real estate stems from the favorable treatment by the

government for owning rather than renting a property. In many countries, the homeowner

pays out less in taxes over the long run than the renter of a similar property.

An additional lure springs from the appreciation of real estate over the long haul. As theaverage income of a nation rises over time, so does the accumulated wealth of the

population.

In general, the level of income grows in direct proportion to the size of the economy. Due

to a buildup of savings, however, the accumulated wealth of the population tends to

expand faster than the volume of economic output.

As a result, the stockpile of assets builds up faster than the income level as well. In that

case, a larger pool of savings can be funneled into the property market as time goes by.

In a sense, a secondary function of real estate is to serve as a piggy bank of sorts. Given

this backdrop, the value of the average property has a way of rising faster than the

increase in income.

These factors, along with the leverage provided by banks in the form of mortgages, lead to

the accumulation of real assets over time. Due to the resulting run-up in property values, a

lot of folks get the impression that investing in the housing market is an easy way to build

up a nest egg.

What most people dont realize, though, is that the ease of amassing wealth applies only

to a personal abode. When a homeowner turns into a landlord, the situation is entirely

different.

Hazards of International Real Estate

Renting out a property to a stranger is a business like any other. Actually, its worse than

many other forms of enterprise.

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Lets begin with a counterexample. A shopkeeper can freely eject a troublemaker who

causes a ruckus, or makes use of the merchandise without buying the goods. In a similar

way, the publisher of a magazine can refrain from sending out subsequent issues to

anyone who refuses to pay the bill.

By contrast, a landlord does not enjoy a comparable set of rights. In a raft of countries

round the globe, the tenant is entitled to stay put even if they do not pay the rent for

months or years on end.

In many parts of Europe, for instance, it takes about 3 years to evict a freeloader by due

process of law. And in some cases, a squatter can remain in place indefinitely; a legal

straitjacket prevents the landlord from taking any action against the cadger.

On top of these stumpers, a multitude of investors sow the seeds of their own downfall. A

prime example lies in the eager beaver who plunges headlong into a foreign market

without ever setting foot in the country, let alone checking out the property or its environs.

Admittedly, a cavalier approach of this sort can work like a charm once in a great while. A

case in point is a lucky punter who snaps up an apartment located abroad simply because

it happens to be cheaper than dwellings of similar size on home ground. Then the gamer

holds the property for a couple of years before unloading it on another heedless foreigner

who has no idea how overpriced the unit is.

In this woozy environment, its only a matter of time before the price tag reaches dreamy

levels that are wholly out of whack with local conditions. Sooner or later, the market

reaches a point of saturation and prospective buyers are hard to come by.

As with all bubbles, the frothy buildup has to run out of steam at some point. At that stage,

the market begins to sputter then implode. When the bash comes to an end, the witless

punters left holding the bag end up losing their shirts.

The moral of the story has several parts. Firstly, investing in real estate in any country is

not the cakewalk that a lot of hucksters make it out to be.

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Secondly, the ease of building wealth in the property market applies only to a personal

homestead. By contrast, being a landlord is a completely different ball game loaded with

headaches of all kinds.

Thirdly, real estate on foreign soil comes with additional bogeys, some of which areobvious and others subtle. Amid the morass, a cavalier foray into the property market on

foreign soil stands an excellent chance of turning into a fiasco.

Fourthly, anyone who is serious about investing in global real estate has to do their

homework with a great deal of diligence. For this purpose, the astute player consults

multiple sources of information on a host of topics ranging from economic conditions and

financial prospects to legal implications and logistical arrangements.

On the cheery side, a wealth of information is available from a welter of resources on the

information highway as well as physical space. A handy approach is to begin with a

thorough search of useful hubs on the Internet. Armed with a modicum of basic knowledge

gleaned from the world of bits, the quester is in a position to engage in thoughtful

discussions with live experts in the realm of bricks.

Moreover, a personal visit to the final list of candidate sites is a must. In fact, the adept

investor looks over the locality at different times of the day and night under a variety of

weather conditions.

Depending on the venue, the climate could vary a great deal over the course of the year.

In many cases, the locality will undergo a seasonal cycle ranging from summer to winter

and back again. In other places, the main pattern might be a monsoon season followed by

a dry spell. In still other cases, the weather may scarcely change at all during the entire

year.

To add to the muddle, the climate could exhibit a mixture of the foregoing modes. An

example involves a mashup of hot and cold bouts in tandem with wet and dry spells.

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Whatever the setting might be, the mindful investor should take pains to visit the locale

under sundry conditions. During each trip, the prober ought to explore the target

neighborhood on foot as well as traverse the larger environs by car.

One purpose of the legwork is to experience the extremes of weather in person. A second,and related, goal is to picture the impact on the prospective tenants if the property were to

be purchased then rented out.

A third task is to study the changes in the tenor of everyday life. As an example, an entire

town might be abuzz with activity and swamped by tourists in the heat of the summer. Yet

the same locale could be deathly quiet with hardly a stir in the freeze of the winter.

In a comparable way, a particular neighborhood or a given street could change complexion

over the course of the year or even the span of a single day. For instance, a side street

could be an oasis of tranquility in the daytime then turn into a madhouse of revelers

hopping from bar to bar in the middle of the night.

In these ways, the texture of a street or a town can vary over the course of the day, month

or year. The same is true of a larger region or even an entire country.

Misleading Information

As in any other sphere of investment, the property market is laden with patchy and

misleading data. As a result, the unwary investor could easily rush into a deal in which

there is no meaningful chance of making a profit.

A prime example of flaky information lies in the level of rental income expressed as a

fraction of the purchase price. The crude data may paint a rosy picture of the market, but

an investor would in practice be hard-pressed to match the putative figures.

The rental yields published by market analysts have to be taken with a grain of salt. As an

example, suppose that a property has recently sold for $100,000 while the monthly rent is

reported as $500.

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Based on the latter figure, the rental stream comes out to $6,000 on an annual basis. In

that case, just about everyone will reckon the gross yield to be $6,000 divided by the

purchase price of $100,000; that is, a rental rate of 6 percent a year. The folks who suffer

from this delusion usually run the gamut from the market analyst and sales agent to thebusiness media and the investing public.

In reality, though, the proclaimed figure of 6% is apt to be far too optimistic. All too often,

the property will sit empty for several months out of the year, if not more. The bugbear of

downtime is especially acute in connection with leisure properties such as ski chalets and

seaside cabins.

Going back to the previous example, suppose that a resort property stands empty for just

6 months out of the year. In that case, the owner would end up with a gross intake

amounting to an annual yield of 3 percent.

To make matters worse, the owner will have to contend with a bunch of expenses as well.

The payouts of this stripe include the burden of municipal levies and income taxes. Other

cutouts range from the fee claimed by the property manager to the upkeep for routine

maintenance on the unit.

After taking into account the litter of payments, the luckless owner could easily end up with

little or nothing in the way of profit. In fact, some investors end up putting fresh money

year after year into a property that was supposed to produce a steady stream of rental

income.

Given this backdrop, the purchase of a government bond with a maturity date of 5 years or

more could have made a lot more sense for the investor at the outset. In some cases,

even a savings account at a commercial bank may turn out to be more lucrative.

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Setup for the Global Investor

On the road to investment, the first task is to gather a heap of background information on

the marketplace. In this light, the relevant issues range from the big picture of the economy

to the detailed portrait of the property at hand.

An example of a macrolevel feature lies in the prospect for economic growth in the target

country. Another sample is the affordability of housing in relation to local wages on

average.

Meanwhile an instance of a mid-level facet lies in the character of the district or the

neighborhood. Another sample involves the plans of the local government for urbanrenewal throughout the locality.

Digging deeper into the subject, a microlevel issue concerns the details of the investment

project. A case in point is the condition of the property along with any warranties in place

for the construction of a new-build, or the repairs made to an older unit. Another instance is

the expected return on investment while taking into account the prospective rentals as well

as likely expenses.

A second type of requirement for the serious investor is the need to visit the country in

person. In fact, the trekker ought to make the journey more than once in order to get a

rounded sense of the country, the district, and the neighborhood. Without a broad-based

perspective, its impossible in practice to figure out whether the prices in the area are

reasonable compared to other places within the country as well as farther afield.

A third issue involves the scope of change in the local market. As an example, the investor

has to figure out whether the price level is in fact headed upward and if so, at what

speed and how long the trend might last.

Another sample lies in the envisioned impact of further development throughout the

locality. For example, the erection of a shopping center might give a boost to property

values in the neighborhood. Or, the mall could turn out to be an eyesore and a magnet for

traffic jams that give the residents plenty of cause for grief.

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A fourth factor involves the choice of a reputable agent who can help the investor with the

logistic and bureaucratic matters involved in buying a property. The helper should also be

a valuable source of information in sizing up the merits of alternative sites within the

locality.

A competent agent should also have some informed opinions on large-scale trends within

the domestic market, along with solid facts to back up the hunches. The same is true of

the prospects downstream for other countries within the region.

If the investor does not plan to rent out the unit on their own, then a property manager will

have to be hired. The function of the local agent is to deal with prospective tenants as wellas handle sporadic tasks such as routine maintenance or emergency repairs.

Depending on the scope of duties, the property manager will likely charge a fee in the

neighborhood of 10 percent of the monthly rent. On a negative note, an agent might insist

on a fixed fee for minding the property regardless of whether the unit happens to be

occupied or not.

The novice investor should avoid the millstone of a fixed fee. In other words, the property

owner should deal only with an agent who agrees to take a modest cut of the proceeds

whenever a tenant happens to turn in the rent.

In many cases, a dwelling may stand empty for months on end or even for the bulk of the

year. A veteran who owns dozens of properties of a similar stripe might be able to assess

in advance the amount of downtime to be expected from a particular unit. For a rookie in

the field, however, any projection of the revenue stream is apt to be iffy and amount to little

more than sheer guesswork.

There are different ways to search for a suitable agent to fill either of the two roles

described above; namely, a purchasing aide or a property manager. One way to begin the

quest is to visit online forums in which the bulk of the participants are foreigners residing

within the target community.

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On the downside, some of the remarks on the Web are sure to be biased and unjustified.

On the other hand, the patient Netizen who sifts through scores of comments from

different participants will note a number of themes and suggestions which crop up

repeatedly. These ideas can then serve as launching pads for further investigation.

In a similar way, a viable approach in the realm of rocks is to attend a social gathering of

expats residing in the locality. A get-together of this stripe is apt to welcome a newcomer

with open arms.

A fifth task for the investor is to talk to their financial advisor as well as tax counselor. The

crux of the agenda is to compare a number of alternative ways to buy a property and

manage the investment.

An example in this vein is the relative advantage of purchasing the property directly as a

private individual versus owning the unit indirectly by way of a newborn company. The

financial as well as legal implications will depend on a raft of factors ranging from the

personal circumstances of the investor to the local regulations on rental properties.

An example of the latter is the welter of tax burdens in the target jurisdiction. The pertinent

factors span the gamut from property taxes and income brackets to capital gains and

special exemptions.

To add to the complexity, the investor must also grapple with a bunch of similar issues in

their country of legal residence. In certain cases, the cosmopolitan player will also have to

consider the impact on tax liabilities in their country of citizenship.

As an example, a U.S. citizen is subject to income taxes on a worldwide basis even if they

happen to live abroad on a permanent basis. For instance, the globalist who invests in an

African country has to contend with American taxes even if they reside in Asia year after

year.

A sixth factor lies in the exit strategy. Before taking on a big responsibility, its a good idea

to form some idea in advance of the way things should wrap up in due course. The precept

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of advance planning is applicable not only to an investment project, but to a major

undertaking in any area of life.

In the case of real estate, the investor has to sort out a batch of terminal issues prior to the

purchase of a property. Examples of this kind include the expected length of theinvestment horizon as well as the mode of disposal at the end of the holding period.

To sum up, an investor in international real estate has to mull over a slew of topics in

advance. The good news is that a wealth of background information is available for this

purpose in the realm of bits as well as rocks.

On the downside, though, a great deal of the content will only be applicable to smallgroups of users who happen to fall into narrow categories. An example of the latter is the

band of investors who have already decided to purchase a seaside property within a

particular country.

On the upside, though, the resources dealing with broader issues can empower anyone

whether newbie or oldster in the global marketplace. As an example, a list of the average

cost of apartments across different countries is a valuable point of reference for the

investor in picking out the most promising locales.

TOP RESOURCES

This section presents a muster of handy resources for investing in international real estate.

The nuggets profiled here can serve as springboards for further probing into specific

countries and markets.

Starting with the Basics

In tackling any subject, its usually a good idea to begin at the beginning. A convenient

point of departure is an introduction to the real estate market at the Wikipedia hub. A link to

the primer is given at the end of this article.

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The write-up at Wikipedia gets off to a slow start off by wallowing in lawyer-like talk. On the

bright side, though, the rest of the survey is more readable. The primer also provides a set

of pointers to additional resources dealing with basic information on kindred topics.

Surveying the Market

The Royal Institution ofChartered Surveyors ( RICS ) is an independent organization that

regulates surveyors and other professionals in the property sector. The outfit drums up

training standards for the benefit of its members even as it enforces codes of behavior in

order to safeguard the public. Another mission of the organ is to provide advisory servicesto governments and companies.

Although RICS is based in London, it has spawned offshoots round the world. The branch

offices cover the gamut from the U.S., Australia and Hong Kong to Dubai, India and South

Africa. The members of the organization are scattered across some 150 countries.

The Web site maintained by RICS serves up a variety of trenchant reports and articles.

Among these is a periodical dealing with a potpourri of observations on the state of the

global property market.

Realty across Diverse Countries

The Global Property Guide is a gold mine of articles and statistics on scores of housing

markets throughout the planet. In comparing the property sector across different countries,

the Guide looks at the prices of large apartments in major cities.

To be precise, the baseline for comparison is a dwelling of 120 square meters (about 1,292

sq. feet) in each country. The advantage of this scheme is that it represents in some sense

a mixture of the two main branches of the housing market. From the standpoint of size, the

target property straddles the middle ground between a biggish apartment and a smallish

house.

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On the other hand, the investor has to keep in mind that this type of abode is not at all

representative of the bulk of the housing stock in any country. More precisely, a dwelling of

this sort appeals mainly to the minute population of upscale expats employed by

international firms or foreign governments, who happen to be on temporary assignment inthe locality.

By contrast, an independent expat is unlikely to pay for sumptuous quarters of such

acreage even if they could afford it which they probably cant. This type of resident is

exemplified by a freelance photographer or an English tutor.

As for the local denizens, a young professional or a small family is apt to live in a compactapartmentof much smaller dimensions. Meanwhile a larger family will likely reside in a

townhouse farther away from the center, or a free-standing house in the suburbs.

The administrative office for the Guide happens to be located in Manila, Philippines. Even

so, the location in Asia is not a reflection of a regional bias or a parochial bent.

Rather, the outlook at the portal is fully global and multiplex. Moreover, the quality of

analysis is exemplary within the patchy and jejune field of international real estate.

Channel for Overseas Properties

TheMoveChannel, based in London, maintains a sprawling list of residential as well as

commercial units across the planet. The upside is the extensive lineup of properties for

sale.

On the downside, the coverage for certain countries can be skimpy or nonexistent. Despite

the limitations, though, the portal is a convenient point of departure for the investor who

wants to get an overview of the offerings in the most popular markets round the world.

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Band of Agents

Assetz is a group of agencies dealing with real estate investments. The ensemble is based

in Stockport, near central England.

The motley crew offers a variety of services relating to the property market. An example in

this vein is acting as an agent for the investor who wants to buy an apartment for personal

use or rental income.

Another offering of the group is a convoy of investment vehicles catering to the general

public. The intake of capital is used to purchase properties for the purpose of rentalincome, followed by capital gains in due course. The outfit invests in a gaggle of countries

ranging from Britain and the U.S. to Portugal and Cyprus.

Painless Way to Rent out Properties

In some countries, a dandy way to invest lies in a standoff scheme known as a leaseback

program. In this type of arrangement, an investor buys a property then leases it to an

operator that assumes responsibility for managing the property.

The enticement for the owner is a guaranteed income each year. At the outset, the yield to

the investor is wont to lie in the range of 3 to 5 percent a year of the purchase price of the

property.

The payout may increase slightly from one year to the next. The turnout depends on the

particulars, such as the way in which the payments are indexed to the rate of inflation.

The leaseback scheme is especially prevalent in France. In order to expand the pool of

properties available for tourists and other types of visitors, the government offers a couple

of carrots in the form of tax benefits to the investor. An example of this sort is a gradual

reduction in the rate of capital gains payable upon the eventual sale of the property.

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In the case of a holiday property such as a ski lodge or a seaside cabin, the owner may be

able to book the property for a portion of the year for personal use. The amount of time set

aside for the owner is offset by paring down the guaranteed income paid out by the

property manager.

The standard duration of a leaseback contract in France is a period of 9 to 11 years. At the

end of the initial span, however, the property manager usually seeks to renew the contract

for a second term.

The investor enjoys three types of benefits from a leaseback scheme. First, the busywork

entailed in renting and maintaining the unit is outsourced to the property manager. Second,

the owner can receive a guaranteed income for a decade or two, in addition to the capitalgain at the end of the holding period. Thirdly, the government offers tax breaks such as the

rebate of the value added tax which may amount to 19.6% of the purchase price of the

property.

Naturally, the leaseback scheme comes with a number of drawbacks as well. An exemplar

is a hefty penalty borne by an owner who decides to terminate the contract prior to the

date of expiration agreed upon at the outset.

To a small extent, the leaseback concept has found its way to nearby countries such as

Spain, Switzerland and Belgium. On the downside, though, the latter states have little to

offer in the way of incentives such as tax breaks. As a result, the leasing scheme has not

yet gained much headway outside its stronghold in France.

On the other hand, a lot of policymakers round the world are eager to turn their countries

into prime destinations for tourism. For this purpose, a leaseback program would be a

simple and painless way to tap into a vast pool of foreign capital.

A cornucopia of rental properties could go a long way toward luring a swarm of tourists.

The cost of lodging is usually the single biggest expense for a nomad traveling abroad for

vacation, business or study. A large inventory of modern dwellings offered at reasonable

prices would lay the groundwork for a thriving industry catering to foreign visitors as well

as domestic tourists.

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A brief introduction to the leaseback concept is given in Wikipedia. A link to the write-up is

given below under the section on Further Resources.

American Homestead

The National Association ofRealtors is a trade group based in North America. The

members of the Association comprise more than a million brokers, societies and other

organizations involved in the real estate industry.

In any given district, city or region, the ensemble of property brokers often sharesinformation though an online platform called a Multiple Listing Service (MLS). Many of

these portals adhere to the policies set by the Association.

In spite of its expansive scope, however, the Association is not all-inclusive. In other

words, a welter of private databases are maintained by independent agencies which do

not belong to the trade group.

Despite this limitation, the MLS is a handy way to cover a lot of ground by consulting a

single source. For this reason, the portal and its entourage is a good place to begin the

search for a suitable property in North America.

Properties Abroad for Vacation and Retirement

At the dawn of the millennium, one of the jumbo trends lies in the upswell of senior citizens

that make up a growing share of the population. As the ranks of the oldsters continue to

burgeon, their decisions on where to live and what to buy have a big impact on the

economy in general and realty in particular.

A newsletter named InternationalLivingcaters to the blooming segment of the population.

The publication is grounded on the premise that current retirees as well as other mobile

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folks can enjoy a better lifestyle at lower cost by moving out of costly locales such as North

America and Northern Europe.

The publishers maintain a Web site featuring a smorgasbord of piquant fare. A case in

point is an annual survey of the quality of life in scores of countries round the world.

As it turns out, the mature economies on the southern reaches of Europe often rank high

in the beauty contest. The editors of the newsletter have a fondness for France and Italy,

each of which is renowned for its cultural assets and relaxed lifestyles as well as

exceptional standards of health care.

In addition, Switzerland and a number of other countries in Europe usually place well in therankings. Further afield, the southern lands of Australia and New Zealand also hover near

the top of the list.

Another popular report from International Livingis an annual survey of the best spots as

retirement havens. In sizing up the candidates, one of the main factors lies in the cost of

living.

The top slots are usually claimed by a cluster of countries in Latin America and farther

south. In recent years, the winning names have ranged from Mexico and Panama to

Ecuador and Uruguay. Within Europe, Italy and France are perennial favorites of the

judges as retirement venues.

On the whole, the tenor of the newsletter suggests that the main audience is located in

North America and to a lesser extent in Western Europe. This perspective would explain,

for instance, why the budding regions of southeastern Europe tend to get short shrift.

Examples of this sort are found in Croatia and Montenegro. From a larger stance, the

entire coastline along the eastern edge of the Adriatic Sea has been attracting a growing

horde of vacationers from the Western world.

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Within the European Union, another example of a hotspot lies in a string of seaside resorts

along the eastern edge of Bulgaria. The story is similar for the ski slopes astride the

mountains of western Romania.

A bit further afield, the beaches and towns of Turkey have been climbing the charts asholiday destinations for Europeans. The same is true of the coastal resorts in Egypt.

In due course, a sizable fraction of todays tourists will doubtless return to these familiar

haunts when the time comes for them to pick out sunny and affordable places to retire. To

some extent, the story is similar in other parts of northern Africa. A prime example is the

emergence of Morocco as a mecca for European tourists.

The upsurge of travel for vacation and retirement is a boon for the favored nations. Over

the short term, the influx of foreigners and their wallets pumps up the level of income for

the workers in the hospitality sector.

Over the longer range, the growing cadre of tourists, retirees and other expats serves as a

magnet for foreign companies based in the wealthy countries. The crew of outlanders

moving into the sprouting markets runs the gamut from travel agents and budget airlines to

commercial banks and shopping centers.

As the years go by, the local staff employed by the international firms comes to acquire

practical skills on the job through technical duties and managerial roles. The repertory of

know-how comes in handy when the time comes for the natives to leave their employers

and launch brand-new ventures of their own.

The upgrowth of the economy at large is of course a secondary issue at best for the

individual investor in a local property. The transformation merely serves as a backdrop for

market forces whose direct impact on the property sector is a steady rise in the value of

real estate.

In other words, an increase in tourists and expats leads to an upsurge of demand in the

housing market. For the international investor, the crux of the matter lies in the fact that the

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incoming foreigners as well as the newly wealthy in the local economy have the means to

pay top dollar for the most desirable properties.

The macrolevel trend is a godsend for the investor with a cosmopolitan agenda. In addition

to the joys of traveling to enticing locales, the owner of a choice property can look forwardto the financial gains spawned by the boom in real estate.

Boons of Global Investing

The fundamental mantra of real estate is location, location, location. In the era of

worldwide markets, the age-old chant takes on a new meaning.

In the olden days, the maxim was useful mainly on a local level. If an investor had already

decided to buy a property in a particular town or district, then the specific site would be

paramount if other things were equal. For this purpose, the issues to consider spanned the

gamut from the texture of the neighborhood and the splendor of the view to the ease of

access and the proximity to shopping.

For the international investor, though, the world is their oyster. In that case, the physical

site is only a small aspect of the slew of issues to ponder.

Admittedly, the local venue is a vital factor. But how does the investor figure out what

region or country to focus on, let alone which district or neighborhood?

In dealing with a global market, the prospective buyer has to look at the big picture as well

as the local scene. The relevant factors run the spectrum from demographic shifts and

economic developments to lifestyle trends and market dynamics.

The issues at hand are not simple, nor the decisions straightforward. Thats the bad news.

The good news is that an investor who expands their horizons has a plethora of options. If

one country or region does tickle their fancy for some reason or other, then there are

plenty of others to choose from.

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For the serious investor, a hallmark of international real estate is the need which doubles

up as the opportunity to visit foreign countries. Even if a prospective project ends up

going nowhere, the spell of immersion in the local culture is sure to broaden the mind and

nourish the soul.

For this reason, there is no such thing as a wasted trip for the investor with a global

agenda. Even a fruitless venture from a financial stance can turn out to be a bracing tonic

for the whole person.

World of Realty

To wrap up, real estate has been the dominant form of wealth down through the ages. In

the modern era, however, the upsurge of financial vehicles has posed a growing challenge

the primacy of tangible properties. The assets of the virtual kind run the gamut from stocks

and bonds to options and currencies.

Despite the upheaval in the marketplace, though, the property sector still retains the top

spot round the globe as the centerpiece of household assets. Moreover, real estate will

continue to comprise a dominant form of wealth for individuals as well as organizations in

the foreseeable future.

On a negative note, the property market is rife with pitfalls both obvious and subtle. Worse

yet, the hazards are greater still in grappling with investments on foreign soil.

In order to ensure a solid chance of success, the earnest investor has to do their

homework in depth. To this end, a trusty point of departure lies in a clutch of cogent

resources on the information highway.

In addition, the legwork in the sphere of dust includes treks to promising locales as well as

huddles with live minds. The powwows with human experts have to cover a lot of ground,

ranging from economic trends and market conditions to financial projections and tax

conseqences.

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On the upside, the best opportunities for growth lie in far-flung hotspots dotted round the

planet. Moreover, the upsurge of the property market tends to go hand in hand with a

groundswell of productive activity and economic development within the local district as

well as the entire region.

Given this backdrop, the influx of capital serves as an engine of prosperity to uplift the

level of income as well as the standard of living in the local environs as well as farther

afield. For the investor with a dollop of vision and pluck, the world of international real

estate beckons with a medley of rewards from a personal standpoint as well as a societal

stance.

Further Resources on the Web

Assetz. http://www.assetz.co.uk.

Global Property Guide. http://www.globalpropertyguide.com.

International Living. http://www.internationalliving.com.

National Association of Realtors. http://www.realtor.com.

Royal Institution of Chartered Surveyors (RICS). http://www.rics.org.

TheMoveChannel. http://www.themovechannel.com.

Wikipedia. Leaseback. http://en.wikipedia.org/wiki/Leaseback.

Wikipedia. Real Estate. http://en.wikipedia.org/wiki/Real_estate.

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Documents

International Real Estate for Investment and Retirement