The cost of owning a real estate property in major cities is very expensive, but in many places around the world, you can own a spacious land and home without burning through your life savings.
Italy, for example, is surprisingly affordable. You can invest in a property in its idyllic countryside and turn it into your summer home or a rental place for the many tourists that visit the beautiful European country.
Owning an international real estate property is a dream for many people. But what people don’t realize is that it comes with its own set of unique challenges. In this blog post, we’ll explore some key considerations for maintaining an international real estate property.
Hire an expert
One of the most important things you can do when you own an international real estate property is to find an expert in property management. A good property manager will be familiar with the local area and be able to act as your eyes and ears when you’re not there. They’ll also be able to deal with any maintenance or repair issues that come up.
Property managers play a critical role in the success of any real estate property, whether it’s located in your hometown or across the globe. They are responsible for overseeing all aspects of the property, from maintaining it to finding and coordinating repairs. In addition, they are often responsible for marketing and renting out the property to tenants.
If you’re thinking about purchasing an international real estate property, it’s important to research the different property management companies that operate in that area. Ask for referrals from friends or family who have already purchased a property in that location. Once you’ve narrowed down your choices, interview several of them to find the one that best suits your needs.
Staying compliant with local regulations
Different places have a different sets of rules, especially in owning a real estate property. Another important consideration when you own an international real estate property is complying with local regulations. This can be anything from getting the correct permits for renovations to ensuring that your property taxes are paid on time.
In some countries, non-residents are not allowed to own land. Thailand, for example, would not sell land to foreigners. In Vietnam, land is technically a collective property and those who want to build a home will have to lease the space. In many places, however, non-citizens can purchase a condo.
Failure to comply with regulations can result in costly fines or even the loss of your property.
Keeping up with repairs and maintenance
Just like any other type of property, an international real estate property will require regular repairs and maintenance. From fixing a leaking roof to painting the exterior of the house, it’s important to budget for these costs so that they don’t take you by surprise.
However, if you are not physically present, the property may begin to degrade. If you have a property manager, they can take care of the maintenance and repair work for you. Otherwise, you would have to do your research to find plumbers, electricians, and other workers you can trust to fix what is broken at your property.
Another thing to keep in mind is that the cost of materials and labor can be higher in some countries than others. For example, the cost of shipping construction materials to an island nation like Fiji is going to be more expensive than if you were doing the same project in a major city like New York.
Dealing with problem tenants
If you are renting your property, there will be a chance that you will encounter tenants who cause problems. Unfortunately, there’s always a chance that you’ll end up with tenants who don’t pay their rent on time or those who damage your property.
If this happens, it’s important to have a solid eviction process in place so that you can remove them from your property as quickly as possible and minimize the financial impact on your business. It is also better to communicate rules clearly with your tenant establish your expectations from them. If something comes up, keep communication lines open and talk as soon as possible to try and resolve the issue without having to go through an eviction.
If you’re thinking about buying an international real estate property, then it’s important to be aware of the challenges that come along with ownership. From finding a good property manager to complying with local regulations, there are a number of things you need to consider before making the purchase. However, if you’re prepared for the challenges, then owning an international real estate property can be a great addition to your portfolio.