Overseas Land Investment – Where and When to Invest in Land
Firstly, land overseas is often much cheaper than here at home. This means that straight away the investment carries less risk and is more affordable. It also means that there is much more room for growth and therefore potential profits.
The second reason why buying land overseas can be more profitable than investment land here at home is that often land abroad has more reason to increase in value rapidly. Investment in land here can be profitable too but land prices here tend to grow steadily and a predicted rate simply because there are no new factors contributing to rapid growth.
Land overseas on the other hand, can benefit from external factors that can contribute to very rapid growth meaning that overseas land investment can not only be cheaper in the first place but can also produce much bigger profits much faster than typical investment in land here at home.
When considering an investing in land abroad it is worth exploring whether any of these external factors apply to the area you are looking at investing in. For example, is this a new up and coming tourist hot spot? Has the Government recently made a large investment in the area? Are businesses moving to the area? Is there a growing expat community settling there? Any of these factors can make a massive difference to the potential of your investment.
The next step is deciding when is the best time to invest. Overseas land investment can be very profitable but if you invest in overseas land that has already experienced the best part of the explosive growth then it defeats the object.
The trick is to time the overseas land investment correctly. In an ideal World you are looking to buy overseas land at a time when the external factors can be seen to be having an impact in the near future but before any true changes have taken place. This is the stage where investors will be cautious and therefore at first the overseas land value will grow slowly. However, as more and more people take the step the proverbial snowball begins and even more jump on the bandwagon. As more people jump on the bandwagon prices are forced up faster and faster until it hits a peak. It is obvious to say that the ideal point to get in is just before the momentum builds up and then to exit the overseas land investment once that peak has been achieved.
Overseas land investment can be extremely profitable and is usually very simple. It also benefits from often having no tax burden or maintenance costs making it even more appealing. However, no matter how appealing and overseas land investment may seem at first, always consider the above points before making any land purchase