Tips on buying overseas property

I'd completely disagree on the second tip – why on earth would I want to pay double finder's fee (if not much beyond that)? I'd much rather invest (much less) in finding one good local agent in my destination country. The first and third tip, as well, seem to be mostly relevant to purchases for personal purposes, as opposed to investment…the rest of the advice, although so general as to be almost meaningless, is at least sound, from my perspective also. Wealth of information on buying overseas here – http://itunes.apple.com/us/app/rei-wealth-mag/id552053319?ls=1&mt=8%29 (ipad only, unfortunately).

Or have (a) verifiable and accountable partner/s in place speaking that language 

Not sure what you mean by "rely" – there are ways to verify potential advisors, professionals, business partners etc in every country – and also ways to verify your recourse in case things go south. Clients do this to us every day, and we do the same to others in other countries. "Jumping into bed" with anyone who sounds promising is extreme folly, but avoiding all foreign environments for fear of language or cultural barriers is the other extreme. Incidentally, speaking "the same language" didn't seem to do much good to those swindled in the US, as we've been reading here – I've yet to see myself, or anyone else, get screwed over like this in Japan, Singapore or Hong-Kong, for instance, to name just a few of those "scary foreign places" which are far more regulated and safe to purchase in compared to the US, to name one "comfy English country".

Interesting post this one.

Here is what I did 4 years ago when I purchased my first US property in Phoenix, Arizona.

Studied the Macro economics of America and what industries and economic trends were developing. (This is very important! Detroit looks great on paper, but when you dig a little deeper……not so great)

Decided to target Phoenix first. Needed to see it to believe it.

Was taken on a tour of the 6 best school districts in the city

Interviewed agents and construction teams to further get a feel of which area I would target and decide who I would use.

I wanted to make sure the agent I chose had dealt with foreigners before and also spoke to the clients of these agents to gain further inside information on whether I could trust them or not. Not treating this interview process seriously may come back and bite you. There are a lot of sharks who want to make a quick buck.

You need to make sure you have someone on your side, with experience in the market and foreign investors

Spoke to many locals in 5 different suburbs I was taken to. Asked them about the street, whether it was quiet, whether they would let their kids play out at night time. Again, I was trying to de-risk everything 

Interviewed an attorney about entity structure

Set up a bank account

Spoke to an accountant about tax issues, then spoke to a specialist back in Australia that I still use today about AUS/US tax issues

Opened up a currency account to get wholesale currency exchange rates

Started to put in bids at around 25% below listing price to test the waters. Instantly had a few approvals, which kind of told me I may have been able to put in even lower bids.

Finally purchased my first home while back in Australia.

Renovating management was a bit hard via the internet and email was challenging. (I purchased a few turnkey after that. And then purchased a few foreclosures after the turnkey experience.)

Rented the property out. 

Wasn't happy with my property manager and sacked him and moved to someone else. I am still finding today, the Americans go at a slower pace than we expect in Australia.

This might have been a basic overview but I hope it gives someone an insight who is thinking of investing.

The biggest thing a first time investor needs to do is to analyse the risks in each market you are thinking of investing in.

De-risk your investment by only investing in a market with good employment and population growth. Good infrastructure, schooling, landlord/business friendly.

Don't chase the returns. It is not worth the headache. I have had client after client come to me and say the same thing.

Every city has its bad areas. Even a solid city like Atlanta or Dallas still have areas to avoid. Leverage off the knowledge from people who have done it before. This will fast track your learning and help you make a confident and well educated decision on where you are going to target to invest.

Regards,