Getting Big Rewards and Low Risk from Overseas Investments

By: Sacha Tarkovsky

Overseas property investment can produce huge gains of 30 -1oo% annual gains but as we all know with reward goes risk.

Here we are going to look at getting 30% + annual profit potential while keeping risk to a fraction of a percent.

How can this be done? Let's find out.

Risk locking in the value

Firstly let's look at the risk and there is a way to lock in the value of your property for a small payment.

There are companies that will lock in the value of the property that you purchase at and you can sell the property to them at this lock in price, if the price goes down.

For example, you buy a property for $100,000 and the market values it at 70,000 you can then sell it back for $100,000. If the property rises then you have the profit and all you have lost is a small lock in payment.

The advantage here is you lock in risk at a pre set level for a small payment (your maximum loss) and still have huge upside potential.

This is a huge advantage for property investors who have exposure to swings in high return high risk overseas property markets.

Getting the best reward

Now you have a small risk let's turn that into a big upside reward. So what guidelines should you adhere to when purchasing overseas property for maximum gains

1. Pick an established market

These tend to have a trend in motion and you have great profit potential of 30 - 100% if you get the right location.

2. The best locations

Tend to be near established areas that are popular with both local and foreign investors, or near building of infrastructure roads, marina's etc that will attract building

3. Safety

You need to make sure that the laws are not unfavorable to foreign investors and you get the same rights as residents.

Good locations?

An example of a good location is Costa Rica.

For example a $30,000 pound building bought near the town of Jaco 15 years ago, is worth as much as $750,000 today and prices are still rising as foreign investment pours.

Investors are taking advantage of beach front property that is 70% less than in Florida in a country just a 3 hour direct flight from the USA.

Add in a stable country, where buying is easy and you get the same rights as residents and you can see why Americans continue to buy in record numbers. Finally, its beautiful as well!

This is just one example but there are many others of booming overseas markets that offer far better returns than the USA, Where interest rate hikes are biting into property values.

Consider this:

For a small annual payment of well below a percent you lock in the value of a property and you also know many overseas markets can make 30 - 100% annually, so the risk reward is fantastic.

You can also afford to try more risky high return markets, we have used Costa Rica as a good solid example, but you can afford to take a risk as you have a lock in value.

The ability to lock in values and seek profits in the high return overseas property market, means that you have an investment with a risk reward that is simply fantastic.


Real Estate
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Real Estate
 



Share this article :
Click to see more related articles