How do you monitor your overseas property investments?

The worldwide property market is now accessible to each and every investor who has an Internet connection and access to research and information. While there obviously various aspects to consider when looking overseas, such as currency risk, economic trends, etc, it does make sense to spread your risk the larger your portfolio. However, one common issue which many investors have is monitoring their overseas property investments closely enough to know exactly what is going on before trends emerge and news hits the mass media.

When you look to expand your property portfolio from your homeland to include other areas of the world the potential is limitless.

Agents on the ground

Whichever way you look at it, whether from a currency point of view, logistics, etc there will be additional costs incurred the greater the percentage of your property investments are located overseas. For many people the idea of hiring an agent to act on their behalf on the ground can seem like a waste of money but in reality they would be your eyes and ears. The ability to find out what is going on in the local vicinity, having someone keep an eye on your property and ensure that management of tenants runs smoothly should not be ignored.

As the worldwide property investment market continues to grow in popularity there is increasing competition amongst agents on the ground acting for foreign investors. As a consequence, if you shop around there is every chance that you can get good value for money although you also need to acknowledge the reputation of the underlying advisors.

The worldwide web

As a means of monitoring and researching specific property markets around the world the Internet is literally a godsend. Picking and choosing individual information sources can be dangerous and it is advisable that you take in a number of information providers to get a more all-round opinion. There will obviously be certain individuals and certain companies whom you trust more than others but the more information you digest the greater your all-round understanding.

The Internet is also very useful if you’re looking for historic trends, infrastructure projects, election forecasts and any other information relevant to a particular property market. In reality it does not take too much of your time to keep abreast of the general news although as we touched on above having somebody on the ground working for you should also be a serious consideration.

Maintaining a long-term investment strategy

In numerous articles we have discussed the idea that property investment should be considered on a long-term basis taking in a mixture of rental income and capital appreciation. While there is nothing wrong trading property where prices are moving or situations are changing, you must also take into account the long-term potential and whether indeed you are acting in haste. It will never be wrong to take a profit on any investment but you need to weigh up the long-term potential against any short term return.

Many investors will be tempted to take a profit in the short term with the idea of returning to the market at some point in the future. How many of those actually do return and benefit from the long-term trend is debatable.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>