Why foreign investors buy properties in countries other than their own (part 1)

Is it for real to be able to find foreign investors for your property for sale?

We have already mentioned many things useful for creating your potential foreign investor’s profile to be able to offer them what they are looking for and sell your property quicker and for more money.

The most important task is to find out whether your property fits any of the possible goals of the foreign buyers. Let’s see why the foreign investors do actually prefer to buy real estate in countries other than their own.

First of all, the foreign investors are often looking for vacation homes abroad. If your country or region of the country is a resort area at the warm sea shore, you have extremely good chances to attract foreigners from the countries with cold climates and no beaches, quite understandable. Also, ski and golf resorts are popular among the foreigners for having a vacation home there. Your chances to sell and for a good price would be even higher if your vacation property can be rented out while the owner is not using it.

The foreigners often buy residential properties not just for using by themselves, but for renting out and getting some rental income. If your property suits this goal, then in your listings and ads provide a lot of information on the rental market in your area and where your property stands in it, to attract the foreign buyers to your particular property over some others.

Also, the property’s appreciation in value is very important for this type of the foreign buyers, so if the latest trends and numbers for your area and type of property are attractive, it will do really good for your marketing and bring you to a successful deal closing. On top of that, it can happen that real estate prices in your country are lower than in the investor’s home country and it will be another enticing factor for the foreigner to buy your property as an investment.

Investing in properties abroad to get the rental income and future appreciation is typical for the buyers from the countries that are unstable politically, have an unpredictable future in terms of economy, finances and their currency values; that is why the citizens of such countries are looking for a safe haven for their money abroad to get more financial security and preserve their savings.

If you sell a property in an established and politically stable country, you have good chances to entice the foreign investors. On the other hand some foreign buyers of the gambling nature might be willing to invest in your property even in an unstable situation in your country if they can bet on a huge future appreciation (whether they can win it is a different question).

In the next post we’ll talk about seekers of the second passports and some other groups of the foreign investors.

Copyright © 2016 by Olga Kellen
All Rights Reserved
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