`Do your research`, overseas investors advised
Released on = March 22, 2007, 7:35 am
Press Release Author = Jimwatson
Industry = Real Estate
Press Release Summary = Investors that are thinking of acquiring real estate in another country will undoubtedly be keen to see that the laws of that particular country act to protect the property rights of foreigners. Some nations protect such rights better than others and it is vital the prospective property investor does some research into the matter before making a purchase.
Press Release Body = Investors that are thinking of acquiring real estate in another country will undoubtedly be keen to see that the laws of that particular country act to protect the property rights of foreigners. Some nations protect such rights better than others and it is vital the prospective property investor does some research into the matter before making a purchase. For example, most European countries represent a safe bet for the overseas investor as they have generally well established property laws that allows the foreign investor to take recourse to the courts when there is a dispute. In contrast, some emerging markets such as Indonesia don\'t allow foreigners to own property at all. Investors who want to circumvent this regulation are forced to find an Indonesian who will agree to \'own\' the property by having the title deeds made out in their name. This has proved troublesome for some investors where the relationship with their native business partner has gone sour, or where they have been outright defrauded. As the arrangement is one that exists in a grey area of the law it is difficult for the foreigner to have the courts enforce it, or the underlying property rights. Marsha Lu, a researcher for emerging foreign market website Property Frontiers says that research is the key to making a sound investment: \"The best way investors can decide whether they\'re happy investing in one country or the other is to do their own research, thoroughly. it is very, very important for every single property investor to buy in a country where foreigners\' rights are protected.\" Ms Lu says that any market can present a sound investment if the planning is done properly, but cautions buyers to be aware that higher profits usually mean higher risks. Conceding the point that mature markets, on first appearances, offer lower returns, she commented: \"Of course, when you compare the mature market with the emerging market, perhaps the return on investment you can make in the emerging market will be far higher. But.normally if you take higher risks, you get better return, but if you take lower risks then the return is slightly lower as well.\" Her comments were echoed by Arian McDermott of Escapes2, who said that while a foreign market may be riskier, the use of a reliable firms and independent lawyers in that country can contribute to the avoidance of pitfalls. He also advises Britons to \"part with as little money up front as possible\". However, Mr McDermott believes that domestic investment can also present its own problems for the buy-to-let investor and feels that no one should be put off looking at an overseas property just because of a perceived higher risk. \"It\'s not that much more risky in the overseas market,\" he says, adding: \"As long as you do your research and use a lawyer, then on many occasions it can be simpler than more established markets.\"
Web Site = http://france.assetz.co.uk/
Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA, 0161 456 5000, linkexchangeseo@gmail.com
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