If you’re looking for a great way to create financial stability, you may want to start investing in foreign real estate. There are quite a few nations that have strong rule of law, friendly populations and dynamic economies. These are the nations well-poised to enjoy strong property value growth over the next decade. The sooner you start investing in property, the sooner you can take advantage of rising property values.

The Challenges Of Buying Property Overseas

Supposing you’re looking to purchase real estate abroad, you likely won’t be able to secure a standard mortgage. In some countries, mortgages are only available for locals. In other societies, it can prove difficult to secure mortgages without the right connections. Alternatively, each home buyer might be required to pay a remarkably high down payment. Fortunately, there are a number of alternative methods for financing foreign real estate deals. Developer financing is ideal if you can secure it. Generally speaking, developer financing (DF) involves relatively little paperwork. In addition, developer financing is sometimes offered interest-free.

More Details About Dealer Financing

One common type of DF requires you to make payments at predetermined dates. For example, you might have to pay 10 percent down and 10 percent after six months. Other types of DF call for monthly payments that are similar to mortgage payments. Before you sign any DF agreement, make sure you thoroughly vet the developer in question. You may be able to purchase an overseas property with funds from your self-directed IRA (SIRA). This is generally only allowed if you are buying a property for investment or rental purposes. With a traditional IRA, your investment choices are typically limited to stocks, government bonds and mutual funds. In contrast, the government puts far less restrictions on investing with SIRA funds. If you choose this route, you won’t be able to live in your new property until you reach retirement age. If you can wait that long, however, this makes for a great alternative financing option.

Last but not least, it is sometimes possible to finance property purchases by receiving loans from friends or family. Thanks to modern technology, it’s easy to send and receive cash sums within minutes. Leading companies that transfer money online can facilitate crucial investment funding. Paypal and Western Union are two well-known companies in this category.

Researching The Risks

If you do end up purchasing land abroad, carefully research all of the risks involved. Also, be aware that you may have to pay more fees than you might otherwise expect. Before purchasing property, make sure you fully understand all relevant local laws. In some countries, you can’t even purchase property unless you have local citizenship. In Malaysia, foreigners are welcome to purchase property whenever they choose. When it’s time to sell property, however, foreign owners must keep their proceeds in a Malaysian bank account.

As long as you do your due diligence, you should be able to turn a decent profit by investing in foreign real estate. Ultimately, you should find that this type of investment can help you build a better life.