Traveling for fun, leisure, and holiday is the number one reason most black travelers save up for international travel.  However, simple steps to investing abroad can turn a vacation into an investment.

For a small group of people who can think long-term and see advantages to building wealth, there are simple steps to investing abroad which can lay the foundation to building long-term wealth as expressed in our previous article Building Wealth While Traveling.

Although investing abroad can be a rather daunting task if you are approaching it as a solo investor, here are some steps to getting started.

1. Have an investment goal – Why do you want to invest outside of your existing country?  Is it for short or long-term returns?  Do you love the destination so much that you would like to own a vacation home you can visit regularly? Is it easier for you to invest in a foreign market, rather than investing at home? These are all questions you should ask yourself to lead you towards an investment goal.

2. Have an investment strategy – The manner in which you choose to invest should support your investment goal.  Deciding on whether or not you want to invest in a project solo or with a partner is critical. 

So much of real estate investing abroad involves having the financial wherewithal to purchase and maintain your investment.  For most people who are interested in investing abroad, having partners for the first deal may be a great strategy. 

Also, having an understanding of the short term vs long-term market as well as the possibilities for growth can help in managing expectations regarding reasonable ROI.

3. Gain an understanding of local regulations – Investing abroad can comes with guidelines that can be very different than what you will find in your country.  While some countries may offer special incentives to foreign investors, other countries may charge more or even tax foreign investors at a higher level than their local citizen.  So become familiar with the rules and regulations that will govern your investment.

4. Conduct On the Ground Research – When investing abroad, you must visit the city you are looking to invest in.  Your visit should be treated as a visit where you are conducting on the ground research.  The research you gather should inform you as to how people live, the local economy, the layout, development, and future plans for the destination. 

This will allow you to have a better understanding of the attractiveness of your investment and it’s income producing longevity. 

5. Meet with Key Players – When investing abroad, there’s a whole team of people you will need to assemble in order to market and manage your property investment. 

While on the ground, you will want to meet with key marketing and management players to ask specific questions regarding the management and upkeep of your potential investment.  This will give you a greater understanding of the process, costs, and possible challenges that come with managing and maintaining your investment so that it is constantly producing income.

If you are interested in learning more about real estate investing abroad, contact us, so we can add you to our mailing list.