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What to consider when investing in overseas property?

What to consider when investing in overseas property?

The Internet has opened up a whole new world of online information and many property investors are now better informed than ever before. As a consequence, at the touch of a button you can now research overseas property investment in any part of the world. In some ways this offers a great way to diversify your property portfolio but there are a number of issues to consider when investing overseas.

CURRENCY MOVEMENTS

One issue which is often overlooked by property investors is currency movements. Historically, short-term currency movements tended to be fairly small between the major currencies of the world. However, over the last couple of years, in light of Brexit, we have seen a dramatic demise in sterling against a basket of currencies. This perfectly illustrates how currency movements can have a significant impact on overseas property investments.

There are ways and means to hedge currency movements while negotiating a deal which will effectively cover you against any volatility on the currency markets. While some currency movements may prove beneficial, the certainty of a firm property purchase price is vital when calculating your potential return on investment.

REGULATORY ISSUES

Unfortunately, many people investing in overseas property have been caught out by assuming the regulatory framework will be the same as their home country. The reality is that cultural and regulatory differences are commonplace across different countries.

Source read full article: https://www.propertyforum.com/industry-experts/issues-to-consider-when-investing-in-overseas-property.html

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