Location is critical when looking to purchase property overseas. It can be difficult for someone to invest in another city in their own country, let alone in a foreign country. Professional advice should be sought so you can match your investment need with a suitable property in the right location. Lifestyle properties will invariably be different from pure investment-grade properties.
Australia is a large country and it requires local knowledge in order to choose the right city and suburb for your investment requirements.
There are many reasons one may wish to invest in overseas property – hedge against local market fluctuations, diversify holdings, generate additional income stream, capitalise on buying power, holiday home in desired location, study base etc. Below we discuss two scenarios which may apply to you.
Investment/Rental portfolio
Many investors who favour property in India may be looking to diversify their holdings due to local market conditions. The housing market in India has seen some tough times with over supply and delivery delays and other regulatory changes, and it may not be over for some years to come.
Depending on your financial position and investment appetite, this may mean a single property investment, or even an international property portfolio.
For those investors wishing to build a property portfolio, we recommend diversifying locations to benefit from market upswings occurring across a variety of cities and markets.
Education Base/Financial security for children re-locating
A great way to support your child who is going overseas for further education is to purchase a property in the same city. This can offer a home for your child for 3 or 4 years while they study (potentially saving anywhere from $50,000+ on rent and housing costs).
Alternatively, an investment property would provide an ongoing income stream for your child if they wish to move and live in another suburb or city.
And if your child has a desire to permanently move to their place of study in the future, an investment already growing in their new country of choice will be a huge bonus. Many students would relish the chance of such a great start in life.
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