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INVESTING 101 EDUCATION

Choosing Investor Friendly International Vacation Real Estate

International vacation real estate can be a solid investment. As long as you work with a reputable investment advisor, visit the property in person and understand the details of ownership in the foreign country, there’s no reason why you shouldn’t consider adding an investor-friendly international property to your investment portfolio. Investor friendly international property will be easy to invest in using American dollars. The transaction should be straightforward, with easy to understand terms and without excessive restrictions.

Why Invest in International Vacation Real Estate?

Even though there are lots of lucrative opportunities stateside, many real estate investors are intrigued by international vacation real estate opportunities. For one thing, some investors simply enjoy the romance of having an international property in their investment portfolio. If the investment looks good on paper and in person, there’s no reason that romance can’t play a tiny part in the consideration. For another thing, many investors appreciate the pride of ownership in having their international vacation destination for their family to enjoy. They like not having to stay in a sterile hotel where they can’t enjoy home-cooked meals or have complete privacy. Another reason investors look to international vacation real estate is they understand the power of appreciating property values. With hindsight, if you’d invested in vacation real estate in Hawaii in the 1950’s just imagine what that relatively small investment would be worth today. When you invest with an eye toward future potential, an international vacation real estate property can not only pay now; decades from today you could be looking at a phenomenal equity gain. Of course, it can be overwhelming trying to decide where to invest; particularly when the property isn’t in your neighborhood or even your state. Here’s how to choose investor friendly international vacation real estate.

Work With a Reputable Investment Advisor

It’s imperative that you work with a reputable investment advisor when choosing international vacation real estate. Even if you feel that you’re intimately familiar with an area because you’ve vacationed there several times, navigating a real estate investment will be an entirely different situation. Most countries have certain rules about foreign real estate investors. You may be subject to special tariffs. There may be any number of caveats or restrictions on your purchase. For instance, there may be residency requirements or rules about whether or not you can back out of the deal based on inspection findings. To protect yourself, your money and your property, work with an established and reputable investment group or advisor that is experienced in foreign real estate purchases in the country where you want to purchase.

Visit First

There are dozens of websites that offer to sell you international properties sight unseen. But those online images can be deceiving. If you want to ensure that your international vacation real estate purchase is secure, you should always visit first. Make at least one visit to the property and plan to spend a weekend or several days there. Don’t limit your visit to the property itself, either. Visit the local towns so you can get a feel for the environment and discover what there is to do for entertainment and so on. Try to see the area through your prospective renters’ eyes. Will people want to vacation here? Ideally, work through an investment organization that offers personalized tours of the area you’re interested in.  With your personal tour guide, you’ll be able to get your many questions immediately answered.

Look For Quality

Just because you’re shopping for international vacation real estate in a foreign country doesn’t mean you can forget about property classes. Foreign countries may have their classification system, but you can still apply the A, B, C and D property classes to any property you find. When choosing your vacation rental property, look for the same kind of quality that you would look for stateside. If you need some assistance with the evaluation, consult with your investment guide.

Choose Someplace Personally Appealing

One of the benefits of owning vacation rental property is that you and your family can also make personal use of it, according to the IRS. For this reason, it’s good to choose a location and property that is personally appealing to you. Remember, this property may be in your family for generations. When looking at vacation rental real estate, consider how it might accommodate your growing and extended family during periods when you aren’t renting it out for cash flow. In the property, look at things like the number and size of bedrooms, open living space, and outdoor space. In the community, consider safety, amenities, and access to transportation and other necessities of life.

Be Sure a Property Manager is Available

Since you won’t be able to look after your international vacation rental yourself, you’ll need to hire a property manager. The property manager will be able to make sure your property is rented consistently rented, collect rents, take care of routine maintenance and expedite necessary repairs. It’s challenging enough to find a good property manager for real estate stateside. It’s harder still to find an international property management company that will understand your expectations. That’s why it’s often recommended to work with a reputable U.S company that provides international property management through one of their partners. This is the simplest way to ensure that your property is being looked after by professionals that conform to the U.S. standards of doing business.

There’s a lot to learn about investing in international vacation real estate, but the abundance of potential benefits makes it a worthwhile consideration. Expand your portfolio with exciting, income-producing vacation properties in exotic locales. You can make things even simpler for yourself by working with a reputable company like American Real Estate Investments. For information about investment opportunities in Belize, or to go on a personalized tour of Belize, please contact AREI today.