8.12.2009

Focus on Overseas Investment Property

The world is witnessing a rapid transformation towards a global village. The trend of 'think global, act local' is also catching up pretty fast, whereby, the big and small business houses are increasingly looking to expand to offshore locations. Now, no country seems far off in terms of investment or tourism purposes. With the prices of services crashing due to increased global competition in almost every country, investing in property abroad has suddenly assumed much more importance in the portfolio of the small time property investor.

The past decade has witnessed a paradigm shift in terms of the way people view the investment opportunities abroad. The opening up of international markets has a major role to play in this surge of demand for the overseas property market. Businesses are on an expansion spree, and the developing economies are welcoming the financial conglomerates with open arms. Globalisation has also led to a major increase in the spending capacities of the average man in the street, which in turn, means lots of disposable income and limited local resources to invest in. Resultantly, there is a clamor for investment in property abroad.

The reasons for investing in property abroad vary from individual to individual. But the bottom line is that everyone prefers real estate investment overseas due to it being a relatively safer option to channelise the surplus funds nowadays. Most developing countries are witnessing a property boom and judging by the long-term policies of governments and the predictions by financial experts, the real estate sector is one of the safest bets to invest your money in.

Some of the factors contribute to the surging demand of property for overseas investment.

The availability of credit options has opened up a world of opportunities for the overseas investors. The financial institutions have been offering attractive products to lend the required finance for investors, since the property mortgage is mostly dealt as a secured loan and much safer bet for the defaulters-wary banks and financial institutions. Finance is not much of a problem for investors who've had an improved retired life in a country that offers much better standards of living which is too good to resist.Nowadays tourists are seeking holiday homes in places where they enjoy the most. The availability of easy finance has given them the opportunity to realize their dreams at much faster rate.

Most of the developing countries are offering a greater probability of capital appreciation for investing in property. As the development cycle is in its nascent stage, the property investment can translate into a windfall for the prospective investors.

There is a trend on moving to safer destinations abroad than suffering from the constant threat of terrorism and extremism. The lure of safer pastures and an easier less stressful lifestyle has also contributed to the demand for overseas property.The rising property rates will, more often than not, translate into rising rental values. The lure of good regular income from renting out the property abroad is also contributing to the surging demand for overseas property investment.

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