Planning Your Strategy for International Real Estate Investment Willmar MN

Buying real estate overseas can be both fun and profitable, provided you develop a strategy that is in line with your objectives and experience as a real estate investor. It's important to understand your tolerance for risk, and the level of involvement you want to have in managing your real estate portfolio, before investing in properties. See the following article from Pathfinder International for more on this.


Buying real estate overseas is fun and glamorous. It can also be very profitable but you need to be clear from the start what you want to get out of the property—and how much you are willing to put in.

First, you need to decide if you are purchasing as an investment or buying a second/retirement home.

You need to take out a piece of paper and ruthlessly profile yourself.

If you are buying purely for investment, your real estate choices should depend on your financial objectives, your existing portfolio (real estate, stocks, bonds, etc.), your tolerance for risk, and simply the reasons you’re in the game. In other words, it depends on what kind of investor you are. That’s the first decision you need to make when entering the global real estate investment market.

At first, determining what type of real estate investor you are might seem like a simple task…one that hardly deserves more than a few moments of your time. This is far from the truth. In the end, the type of investor you are will go a long way toward determining the type of properties you look at, and the type of property you’ll eventually buy.

Although there are hundreds of factors that will eventually go into your final decision figuring out the basics below will help you get started:

• Your reasons for making the investment
• Your tolerance for risk, and how much you have to invest
• How you intend to finance the property
• The needs of your existing portfolio
• Your level of experience in the market
• The level of involvement you want to have managing the property

Let’s look at these one at a time.
 
Why are you making the investment?

There are many reasons for making an investment overseas, and with most people there are several factors at work. I like to think of an investor’s motivation as falling along an investment continuum.

At one end of the continuum, there’s the buyer who wants to use and enjoy the property, hold it for an indefinite period, and eventually pass it along to his heirs.

Eventual resale of the property is not an issue for this buyer. Arguably, this may not even qualify as an “investment” in the financial sense, but more of a long-term investment for the family. I’ve included it here as a point of reference for comparison purposes.

At the other end of the scale, there’s the purchaser who only cares about the investment potential of the property. It’s not important what type of property it is, where it is, or what it&r...

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