It might seem like the most obvious way to diversify your real estate portfolio is to invest internationally. Ancient French towns, laid back Caribbean villas, or splashy Dubai condos. Surely these locations will never go out of fashion. Plus the euro is kicking the dollar to hell and back on value and has been doing so for a while.
As might be expected, there are a few factors to keep in mind. First and foremost, don’t forget the Empowered Investor Network maxim, “Does it make financial sense the day you buy it?” If it doesn’t, nothing else matters.
Depending upon the country you’re interested in, buying a property overseas can open a Pandora’s Box of red tape and bureaucracy. Political change might bring new regimes and new rules about foreign ownership of land. Less stable currencies can take a tumble. You should take more than a passing interest in any country within which you intend to purchase property. Like we always say on The Creating Wealth Show, all real estate is local and you absolutely must have a grasp on local conditions. It’s not like buying an international mutual fund.
Another biggie is make sure the person selling you the property has legal title to do so. For a primer on the correct way to approach international real estate investing, and the geographic areas around the world you should be focusing on, visit https://www.jasonhartman.com. Jason interviews international real estate expert Matthew Montagu-Pollock on show #166.
The Creating Wealth Team
