Although the article was written in May, 2008, the advice given is no less relevant today. An Introduction to Investing in International Real Estate, by Melana Yanos, published on NuWireInvestor, summarizes the basics of investing in the 193 countries of the world into 6 topics. We only introduce them here, and suggest you read the entire article, if you are considering a real estate investment in the Caribbean.
1. International real estate investment can offer excellent diversification of assets: Diversification effectively distributes risk among multiple markets and can optimize potential for return.
2. Currency exchange rates can enhance or impede profit margins:International real estate investment essentially combines property two types of assets: property and foreign currency. The value of a foreign currency can profoundly affect the amount of return made on an investment, as it increases or decreases relative to the U.S. dollar.
3. Legal technicalities (or lack thereof) may increase risk: Navigating the legal landscape of a foreign real estate market can be daunting, especially in developing countries that have only recently opened their property markets to limited foreign investment.
4. Foreign investment opportunities abound in Latin America: Latin American real estate markets can be especially favorable, offering affordable property prices, government initiatives meant to attract foreign capital and exotic, beautiful landscapes.
5. Working with international real estate professionals is an important first step: Embarking on one’s own in unfamiliar territory can be a dangerous move. Contact our local Coldwell Banker agents – they know the market and real estate trends.
6. The US real estate market is not necessarily a ‘bad’ place to invest: The state of the U.S. housing market might be unnerving for many investors, but those who follow the traditional ‘buy low, sell high’ mantra might see opportunity where others see cause for concern.
International real estate investing carries risk but we have professionals at Coldwell Banker who can help you understand the risk and minimize it for your situation. Give us a call.