B Invested

IS OVERSEAS PROPERTY INVESTMENT SAFE?

The world can be your investment oyster, or it can be your investment poison. Many investors consider taking their strategies offshore to and pursue overseas property investment , but as Nathan points out, you need to know what you are getting into first. “Just wondering if you recommend buying international properties after we have at least five properties in Australia?”

Webinar participant Jordan asks, “would you recommend buying international properties after we have at least five properties in Australia?”

 

NATHAN’S SIMPLE ANSWER TO THIS QUESTION IS, “NO.” HERE IS WHY:

AUSTRALIA – THE LAND OF OPPORTUNITY.
This may sound like a cliché nowadays, but in regard to real estate, this still rings true. There are many opportunities for investors in Australia, says Nathan. He has been investing in Australian real estate for more than 12 years and he continues to unearth great deals every day. Just look at the endless examples he boasts about on The Vault!

DIFFERENT COUNTRY – DIFFERENT LAWS.
There are probably loads of great opportunities for overseas property investment. The thing to remember, though, is that different countries are governed by different laws and different tax systems. This means you would need to become an expert on your rights and responsibilities as a landlord and as an international investor. This opens up a whole host of different legal considerations to do with buying, selling, renting and insuring. On top of that, you would need to assess your tax obligations both here and in the country you are investing in. This has different implications on your purchasing strategy and your exit strategy.

NATHAN’S STRATEGY – NOT SEXY, BUT DAMN EFFECTIVE.
Nathan compares his investing strategy to the strategy of a well-known fast-food chain. One hamburger is nothing sexy, but the strategy that has been used to promote and expand the business as a whole is so effective it is worth billions. So it is with property investing. Nathan has found a strategy that has worked for him, and he has repeated it time and time again. Each bread and butter property may not be very exciting in themselves, but the way each property fits into his strategy as a whole is what has made him millions. He says, instead of looking overseas for opportunities, focus on the endless opportunities right here in Australia. Find the right strategy for you and keep repeating it. You may go through times where your situation changes. It is important to constantly review your investing in order to assess whether it is still taking you to your end-goal, but the fundamentals of buying under market value, with a strong upside for growth and neutral to positive cash-flow should always underpin each purchasing decision.

Have you ever invested in property overseas? Please share your experiences in the comments section below.

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