Investing in International Real Estate

Investing in International Real Estate
"Buy low - sell high" - is it that simple?
Avoiding the pitfalls

Search the net for local asking prices (for Budapest, see current selling prices
by district here), and in any case, under any circumstances, please get on the
plane and see the property AND THE AREA yourself before making an
investment decision! It makes no sense to spend € 100,000 on an apartment
but not spend € 500 on a flight.

For your own good, don't rely on property presentations in Dublin hotels and
elsewhere! To say the least, they can be misleading. Prices tend to be too high
and there is little or no control on what is offered. You can make a lot of money
by investing in property in this area, IF you take the responsibility to get properly
informed. You can only succeed if you don't overspend at the beginning, and if
you purchase the right type of property at the right location.

In any country, any location, there is NO SUCH THING as "guaranteed rental
return" !!!

The purchasing power of a nation's currency profoundly effects the actual price of that
nations property. Currency rates are cyclical and nations with high rates of inflation
have weak currencies subject to periodic devaluation's - a fact which creates buying
opportunities.

Bargain time:
between the moment of Devaluation and the moment of Adjustment

This 'window of opportunity,' will only exist for brief cyclical periods, from the moment of
a devaluation up until the time when that nation's ‘internal’ prices are adjusted to
compensate for the difference between the internal prices and those prices existing
‘externally’ to that nation. There is usually, but not always, a lag time between the
moment of devaluation and the moment of adjustment. The lag time can be quite brief,
however the differences in a strong currencies buying power within that lag time is
often quite pronounced. (i.e. the deals are good.)

Upon the inevitable upwards price adjustment created by external buying pressure the
purchased property or commodity will then reflect its truer internal value vis a vis its
national currency once again.

Buying 'because we like the place'

This strategy is justified when we plan to spend part of, or the rest of our life there,
regardless of any cyclical fluctuations in property or monetary values. It may also be
worthwhile to point out the obvious fact that there are both practical and emotional
reasons to purchase real estate. To many of us a family house is much more than just
a piece of real estate, it is a home with a capital ‘H’. It is something personal that we
make a part of ourselves. True, our property purchase is also a combination of other
factors: a major investment, a sort of savings program, a tax shelter and a large
part of our retirement insurance. Buying something as personal and emotionally
laden as real estate doesn't have to wait for bargain time, it can be fun to buy even
when the price is high if the property is something that really excites us.

However, for most of us it is probably always more fun to buy low and sell high than the
alternative.

International Real Estate as Sound Investment and Hard Asset

The fact that more and more people are now buying international real estate, (which is
to say, property in a country other than their birth or current residence) also changes
the time frame in which a 'window of opportunity,' may exist. i.e. the pressure to adjust
to 'external' prices will be greater and more rapid as smart people from around the
world go around the world looking for smart property.

One of the best reasons to buy international real estate

Owning foreign real estate takes you out of restrictive and potentially volatile currencies
whether the Dollar, Euro, Peso or Yen, and places you in a form of real, or hard, asset.

Source:
Buying International Real Estate
Exchange Controls, Offshore Banking, Government Folly, Privacy,
International Real Estate & Foreign Currencies
By Roger Gallo
Read entire artice >>>

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Buying or Renting
a Home in Hungary
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Buying International Real Estate
the Smart Way

Disclaimer: the article serves merely information purposes. Due to its extent, it is neither an all round
information nor shall it be qualified as legal advice.