If you’re thinking of flipping properties overseas, things may not be as smooth sailing as you think. Countries popular with foreign property ownership have since wised up to foreign investors who are making profits from local properties. Quick profits seldom come easy and getting all the necessary legal paperwork and finances in order will take some time and often money since a solicitor will have to be engaged. And in some instances, proof of full financial statements may be required, such as in Britain. In New Zealand, selling a property other than that which is their main address of occupation within a 2-year period, will be subjected to taxes on the profit. And in Malaysia, profit gains are inversely proportionate to the number of years a property is held.
Analysts and property advisors have warned against expectations of quick and high profit gains from the property market in Australia. The markets there are varied, often by:
- State – New South Wales and Queensland have the highest property price expectations and rental rates
- Property infrastructure, furnishings and facilities – Units with better furnishings may be a better investment than a cheaper one with poorer quality furnishings. Security and safety are other considerations buyers often look for.
- Proximity to schools and transport – Buyers and tenants are often looking out for these pluses
- Unique selling point – Even within the same project, selecting a unit which has something the other units do not will put you ahead of the rental and re-selling race
In short, doing sufficient research is crucial and could be the difference between making or breaking a deal. Another factor to consider is financial holding power. As the property market in Australia tends to be slow and moderate, rise in prices may only be significant after 4 or more years.
Most people who purchase a property outside of their home country may have at one point of time or another, considered the possibility of selling their property. So besides heeding the above mentioned points, what else should buyers or investors take note of should selling their property be on the cards?