Real Estate Knowledge

4 Ways to Wisely Manage Your Worldwide Property

Why…and how?

Investing in another home abroad is increasingly common.

However, foreign ownership poses unknown challenges. Foreign laws, business cultures, and currency exchange rates are just a few potential considerations in the property ownership cycle.

1. Familiarize Yourself with the Location, and the Property

Experience with the location is a must. What country are you most familiar with? Whether you previously worked abroad or are simply hoping to buy into an energetic market, here are a few considerations:

  • Where are your overseas family members?
  • Where did/will you and close contacts attend university?
  • Where do you hope to retire?

Virtual house tours are also increasingly available. Check with your agent or online property service if they offer a modern, virtual tour of the property.

Accelerated by COVID-19, more property services offer immersive, virtual house tours.

2. Employ a Property Manager

Certain property can come with a management fee. The more amenities, the higher the fee. This pays for security, maintenance, and other services that add value to your property. Whereas a fund may see a rate between 0.5% and 2%, property management fees can run between 8% to 10% of rent.

Property managers will help find tenants, conduct local compliance, and ensure that the investment remains in good quality. The more properties in your portfolio, the higher the benefit of bringing in more help to run your operation. Even for a single buy-to-let property, a property manager will help take the load off your shoulders if you spend most of the year in another country.

For a more in-depth article about hiring a property manager, read more here.

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3. Look to Family

A majority of people tend to rely on family to manage their assets and other essentials. Compared to relying on a property manager, keeping it within a circle of trusted relatives can build up individual skills, strengthen reliability, and potentially save cost.

Especially if the portfolio is limited to one or two properties, it may be the wiser choice to leave a spare key in the hands of an overseas cousin or uncle and have them be your local attaché. However, if the stakes are considerably higher, hiring someone to handle matters professionally may be the better choice.

FFI’s article on Asian Family Office Management touches on family run investments.

4. Streamline your Payment Method

As a property manager, there are a variety of payments wide and small that require a smooth financial system. It easy to get overwhelmed with payment processing times, exchange rates, and constant notifications – especially when your bookkeeping will regularly handle the below fees:

  • Rental invoices
  • Local Taxes
  • Property Expenses
  • Mortgage Due Dates (if applicable)

If using a property manager, offload payment processing to them. Otherwise, research into cost-effective money transfer options, set up a local bank account, and contact local financial professionals. 

Whether it is for retirement or investment income, the number of international buyers is constantly growing due to globalization, availability, and affordability. And as far back as 2017, Investopedia reported a 19% leap in the overseas property market.

For more reading on overseas investment, check out IP Global’s piece, here. 

Now that you’re here…

At Denzity, we help you find your next overseas property. If you have any enquiries about the above properties, or questions about the process, reach out to our team here. Stay tuned for more investor focused content, financial advice, and industry updates.