With economies in most countries finally recovering from the recession and economic downturn, people are more willing to invest in properties abroad. This is because they will get more for their money in foreign countries.
For example, if you were to buy a house in the US, for $100,000, you would get a town house and some land for a garden, but the property would be very small.
Whereas, with the conversion rate being quite strong at the moment, if you were to spend the same amount of money on a property in an Asian country, you would get a lot more for your money, with a large city apartment, parking space, and even a property with a pool.
People do tend to move abroad for work reasons. They either work for a company that might have offices in Asia, or they work in a field that is in demand in certain countries, which means that they will get paid more.
For example, let’s look at software developers and games testers. In the UK, they might be on minimum wage, but in Asian countries, they are sought after employees, so they might be on a higher wage. Therefore, they would move abroad for their jobs, especially if the cost of living is lower than in their home country.
If they were to move abroad for work and they were to invest in a property, they would be able to have a more luxury lifestyle and they might even be able to save up for the future. Therefore, buying abroad could be seen as an investment for their family.
Other buyers might invest in homes in Asia because they like the culture and they want to spend some time there for vacations. They won’t move there permanently, but they could spend large amounts of time in the country.
They could also make an income off their investment home by renting it out when they are not using it. However, they will need to check the rules and regulations for certain countries and foreign buyers. Some Asian countries will have large taxes on foreigners buying for rent, and other countries will offer tax breaks on the same properties.
Buying a vacation home in Asia should be considered a sound investment. They have a growing economy and the house market is predicted to boom in the future. Therefore, if you buy a vacation home now, you will be able to make a profit on the home if you sell it in the future. This is not even counting any profit that you might make from renting the property out.
If you are thinking of investing in a property in Asia, then you should consider using an estate agent that is specialized in dealing with foreign buyers This is because procedures and payments are a lot different in foreign markets and they can help you to understand how the market works.
They will also be able to put you in contact with banks that are more willing to lend money to buyers from abroad. You will be better able to get a mortgage from these banks, when compared to your home banks because they will be less willing to lend money for use in an untested market.
It is recommended that you do your research before you find an investment property so that you know what payments that you need to make. In the Japanese market, buyers are required to pay 10% of the property valuation up front, so you need to make sure that you have budgeted for this.