Overseas Property Investment

[YevaBailey]

What things to be considered when planning for overseas property investment?

[hhgz]

Your tolerance of risk.

[Bemused]

Hi Yeva

This is a big, big subject.

The key thing is to get really good independent legal advice before you give anyone any money. Every country has its own peculiar rules and regulations and you really do need expert help. The independence of the legal advisor is also crucial as well. It is a really common problem, and not just in Thailand, for local lawyers to be in league with local sellers and developers.

Before you even start visiting potential areas, do a lot of research. Different countries are suitable for different people. Different countries present different risks, problems and opportunities. You also need to identify your own objectives: are you after capital growth or rental return? Some properties are better for one than the other

Best of luck.

PS. don't forget all estate agents and developers lie for a living.

[khundon]

If you want to make a small fortune, start out with a large one.

[Luke06]

Apart from looking at the market situation I would look very closely at the developer, if of course you are going for a new build.

If you take the example of Thailand; there are many developers of all sizes here offering a range of properties. Conducting an investigative due diligence on the company/people involved will give you a very good idea of who you are getting in bed with. Aspects such as previous projects, experience/projects in other countries/home countries, general reputation, legal set up of their company, financial set up of their company, comments of existing customers/clients, reality of the claims they make, value/price of land in the area, previous directorships, number of contractors and subcontractors and their track records/reputation etc...

I have seen some outrageous claims by companies here and a number of what are nothing but fraudsters, with no tangible experience, claiming successful track records overseas. Lawyers won't be able to provide most of this themselves so you will need to use a commercial investigations company. Costs will depend on the number of locations/people/companies being checked and could vary anywhere from 4000 - 15000US+. Considering the typical size of an investment the costs pale but, in my bias opinion, doing anything less is really gambling, even listed companies in the current market should be looked at very closely. Of course you do need to consider that based on the results you may have to be prepared to walk away.

Caveat Emptor

[Obamamama]

First of all you should chose the country.

[LaoPo]

First of all you should chose the country.

No.....the first thing one should do is count your money....than think 3 times...........opt for the country..............and decide to rent..........

LaoPo