So let’s take a look at some of the points you need to bear in mind if you are thinking about buying property in the USA:

What kind of property should you buy?

Needless to say the USA is a very large property market offering a huge range of different types of property. There’s almost too much choice – so start by narrowing things down a little.

First and foremost, think about what you plan to do with your property. For example do you plan to let it out long term to professionals or for holiday rentals? Then think about what kind of property would best suit your investment objectives.

Types of property you can buy in the USA include condominiums (apartments), duplexes (similar to a semi-detached or maisonette in the UK), triplexes, quadplexes, townhouses and single family homes.

You might go for a resale property, or consider the many benefits a new build offers.

If you’re planning to buy property to let out bear in mind that, as elsewhere, the US rental market is quite competitive. So try to go for property that will have strong tenant appeal. For example, tenants are often attracted by property in a secure gated community with good onsite facilities. Waterfront property also has strong appeal.

Location, location, location

The basic fundamentals behind buying property in the USA are pretty much the same as elsewhere. If you’re buying with investment in mind look for locations where there is good rental demand and good yields on offer plus, ideally, good prospects for values to rise.

Consider whether you want to invest in a city, suburban location, rural location or a resort/coastal location. If you’re investing in a city areas with good transport links, good proximity to employment or colleges/universities etc. should always perform well. If you’re buying a holiday property look for proximity to tourist attractions or beaches and so on.

For example, Florida is probably head and shoulders above the rest in this market. Orlando itself is one of the most visited cities in the USA, with around 100m tourists annually.

Finance, closing and the practicalities

Next, consider the practicalities. US mortgages are readily available when buying property in the US. However, if you’re not resident in the US you’re likely to be offered different terms and/or need a larger deposit than local residents. So it’s sensible to plan your finances and take professional advice before you start the buying process.

The purchase procedure in the US, known as ‘closing’, not only varies from that in other countries but it also varies from state to state, each of which have their own laws and procedures. According to US real estate site Zillow the costs of closing can vary between 2% and 5% of the purchase price.

Other considerations to bear in mind when buying in the US include: Any restrictions on occupancy or letting, eg. some communities restrict short term or holiday letting. What community fees or home owner association (HOA) fees might be payable.

Also if you’re buying to let and aren’t actually in the USA yourself you’ll need to ensure that you have good management in place. This will help ensure your property is let to its maximum potential, is well maintained and that the rent is collected on time.

Lastly, although buying in the USA is generally very safe and straightforward, it’s often said that the USA and UK (or any other country for that matter) are two nations divided by a common language. So don’t be afraid to take professional advice when sourcing and buying US property when needed.

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One option that’s becoming more popular is investing in property abroad. If you’re considering buying overseas, here are a few things to consider.

The Benefits of Purchasing Abroad

As long as you’ve planned your purchase wisely, you’ll enjoy a range of benefits from investing in property abroad, including:

• Portfolio diversification (avoiding ‘too many eggs in one basket’)
• Relaxed tax laws (certain countries only)
• The possibility of higher rental yield / capital growth
• Your own holiday home

As part of a carefully managed portfolio, having a property abroad can be a real asset – and if you’re serious about growing your property empire, it’s an option that’s well worth exploring.

Should You Invest in Property Abroad? Questions to Ask

Is it an upcoming area?

There’s huge money to be made in investing in an upcoming location, especially if property prices are still cheap. Once the area becomes more popular, prices are likely to sky-rocket, which means excellent ROI for savvy investors. It’s vital to do your research though – just because a place is touted as ‘the next big thing’, doesn’t make it necessarily true.

Is it popular with tourists (or locals)?

As with your properties in the UK, it’s a good idea to check that your overseas home will appeal to your target demographic. Buy in a popular tourist destination, for example, and your property should generate plenty of interest – particularly in high season. You may want to rent to locals instead; which means you’ll need to check the buoyancy of the residential rental market.

Who will manage the property?

Managing a property abroad is far harder than managing one in the UK – simply because the geographical distance makes it tricky to keep an eye on things. It’s likely that you’ll want to hire a local letting agency to manage the house or apartment for you, in which case, you’ll need to do some number-crunching to ensure their fees don’t eat too much into your profits. This shouldn’t be too difficult – especially if you’ve invested in a good area.

Will you be using it as a holiday home?

One of the most attractive aspects of buying abroad is that you can use the property yourself – as a pleasant base for whenever you fancy a holiday abroad. This is a major perk, but you’ll need to be realistic about how this may affect your rental income; especially if you want to use it for an extended period during high season.

Do you understand the local tax laws?

In some countries, tax laws are more lenient than they are back home, which can help boost your profit. However, bear in mind that the reverse may also be true, and as such, it’s important to familiarise yourself thoroughly with the tax system before you start scouring the market for suitable properties.

Guest post by FJP Investment

For more advice on overseas property investment and information on our current overseas investments contact FJP Investment on 0207 183 0343 or online at www.fjpinvestment.co.uk

The post Is It Time to Look Overseas for Property Investment ? first appeared on Property Insider.

The UAE is recognised as having one of the most developed economies on the planet, reflected in its GDP per capita and is seen as one of the world’s leading strategic locations for business, trade, tourism and investment. Over two thirds of the world’s population live within an 8-hour flight of Dubai and over one-third within 4 hours.

On the ranking of the best destinations for direct foreign investment, the UAE regularly scores within the Top Global 15 countries, due to its foresight, excellent planning and a unique ability to understand investor needs. It’s depiction as a tax-free haven provides huge benefits to investors with 0% corporate and income tax, as well as its diverse and ever expanding, open economy and extremely stable currency.

The UAE also boasts a first class modern infrastructure which includes metros, trams, strong private local and international healthcare facilities and home to Dubai – the global city of fascination and the biggest re-exporting hub in the Middle East, shipping Chinese goods to MENA, CIS, Europe and North America.

The growth rate forecast for the UAE economy over the coming years is 13% (Source: Abu Dhabi Chamber of Commerce and Industry), Dubai attracted AED 25.5 billion in foreign direct investment (FDI) inflows in 2016 and succeeded in maintaining its position among the top 10 global cities in attracting foreign investment, ranking 7th worldwide. Dubai Expo 2020 will also be huge for local investment with an expected increase in local economy by approximately USD 19.6 Billion.

In April of this year, the UAE was named as MENA’s top economy for tourism growth in the World Economic Forum’s Travel and Tourism Competitiveness Report. According to Business Monitor, inbound tourist arrivals in the UAE grew at an average rate of 9% between 2010 to 2016 and is expected to increase further by 6% p.a. by 2020. 14.9 million overseas tourists visited Dubai alone in 2016 (Source: Dubai Tourism), which is only set to increase as we head towards Dubai Expo 2020 which is expected to attract 25 million visitors in its 6-month duration – the largest proportion of international visitors in Expo history.

Ras Al Khaimah’s tourism industry has experienced some of the greatest tourist growth of all the 7 emirates with an increase of 8.7% between 2014 – 2017, surpassing that of UAE, which has only grown by 5.7% in the same period. Ras Al Khaimah’s booming hospitality market is certainly a huge potential area for investment and in particular Al Marjan Island – RAK’s key investor haven and it’s equivalent to Dubai’s Palm Jumeirah Island.

Al Marjan accounts for 78% of upcoming hotel room supply in RAK and is home to a number of high-end beach hotels and has the highest hotel occupancy rates in RAK, as well as the highest average daily room rates. Occupancy levels on Al Marjan in 2016 were 75% – superior to RAK’s overall hotel market and as a result of this huge hotel market demand Crowngate International, a leading global Real Estate Developer, recently announced an agreement with Al Marjan Island and Minor Hotels to launch and build its own contemporary beachfront resort managed by Minor Hotels under their upscale AVANI brand.

The AVANI Al Marjan Island Ras Al Khaimah Resort is available for investment through a hotel fund, from only $25,000 with an investment period of 7 years and an impressive development IRR of 19.8%. This Crowngate/AVANI resort has spotted a huge gap in the market for upscale, premium 4* resorts – at present there are only two 4-star beach resorts operating in Ras Al Khaimah, with 61% of hotels in RAK classified as 5-star.

An upscale resort such as this will achieve high occupancies due to its appeal to price-sensitive travellers and the presence of an International brand such as AVANI puts the hotel in a very favourable market position.

Guest post provided by Crowngate International.

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