Investing in real estate for gain and investing for life
A worldwide real estate market is now more accessible than ever before, information is readily available on the Internet and professional investors continue to grab the headlines. However, sometimes it is easy to forget that not all real estate investments are purely driven by money as more and more people look to pastures new to maximise their financial situation. Yes, while maintaining the value of an investment will always one of the central planks many people are now looking to move lock, stock and barrel to a new homeland.
There are some subtle differences when investing for a short to medium-term gain compared to investing in not only a new property but a new life. These differences may seem small, they may seem irrelevant but they will dictate what type of property you acquire and whereabouts you are located.
Location, location, location
While location is vital for anyone looking to invest in property, the area in which you look will be very different depending upon your ultimate goal. If you’re looking to make a short to medium-term profit on real estate investment then you will need to look towards the “hotspot” whereas if you are looking for a new life then you may well look down a totally different avenue. A long-term investment, after moving lock, stock and barrel, will need to offer not only security of your investment in the long-term but a good standard of living.
Quote from PropertyForum.com : “There are concerns in some quarters that the Bank of England does not appear to have control of the UK property market despite comments to the contrary.”
This is why many people moving to pastures new, whether for employment or retirement purposes, will look away from the more traditional “hotspot”. In many ways there is more focus on the standard of living and perhaps more importantly the cost of living in the area of your new home.
Putting down roots
To be a successful international real estate investor you have to see each property as a “box” which you simply buy at the lowest price and sell at the highest price. There is no emotion, there is no attachment and you will also see many professional real estate investors taking a loss when they feel the market has turned or perhaps they have placed their chips on the wrong bet.
The situation is very different to those looking to build a life, to become part of a community and to put down some roots. Individuals who are moving for a new life will be more aware of the local community, the local way of life and will not want to be seen as a “foreigner” looking to make a quick buck from their property. In many ways the difference between a professional real estate investor and an expat is purely and simply the timescale of their “investment”.
Conclusion
Investment for investment purposes is what makes the real estate market round the world so liquid and accessible. However, sometimes it is easy to forget that many expats will have moved lock, stock and barrel to a new country and will be just as interested in putting down their roots and enjoying their new life as they will be about protecting their investment.