How to Manage Rental Properties Abroad
by Kerry Constine
Becoming an overseas landlord and dabbling in foreign property management can be a thrilling yet stressful affair. By casting your net wider, you will be opening up your world to a lot more property investment opportunities.
However you will have to be prepared to sit down and do a lot more homework - As an absentee owner, your major challenges will be getting mortgage lenders to hand you a loan, finding a reliable property manager and figuring out the key differences in the landlord tenant law.
Since the other guides on this website already gives you in-depth help on property managers and the landlord tenant law, I will focus on giving advice on nailing that mortgage loan for your investment rental property.
Depending on a country's policy towards foreign property investors, getting approved for your mortgage loan can be an absolute breeze or a total maze of red tape. Be prepared to fork out up to 10% of the property's price for admin and legal fees.
As a foreign investor, you are naturally deemed a higher risk borrower so you will be charged higher interest rates. In addition you may also be required to fork out a larger down payment (of up to 50% in some cases).
Although overseas mortgage are more costly for you, it should never deter you from grabbing any great investment properties that turn up.
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