New to Overseas Investing

C

cckp72

Guest
Hello – I am new here although I have read through almost all of the posts. Very informative!

My husband and I would like to purchase an investment property in Europe. Right now our choice seems to be France, although we would be open to where good opportunities lie. When I started doing research, it appeared that the Leaseback option would be the best for us at this time since the property management was taken care of (at this point in time, we cannot move from Canada). However, once I read all of the posts on this topic, I am beginning to think that isn’t likely the wisest choice.

So, my question is – can we still buy an investment property and hire a property management firm or person? Or are there alternatives?

Sorry if this sounds amateur – but it is. It is our first foray into overseas investing and would like to make the best possible decision.

Thank you! :)
 
You should probably get professional advice on the investment and tax issues in investing abroad from a suitable Canadian expert before doing anything. If you do decide to buy abroad then you should obviously make sure to get independent advice/research on any specific property and not depend on a selling agent for such info.
 
Hi cckp

I would agree with clubman you should seek professional advice if it exists for this kind of thing in Canada.
If you are looking for an investment property then I wouldn't be recommending france, nor would I be recommending a leaseback. 1 because france is an old mature market with low returns and 2. because leasebacks arent as good as they sound. Very low returns on properties that are built in undeveloped areas, with all sorts of clauses in the contracts that work against the buyer should you buy with the wrong company. why buy a leaseback when you can put your money in a bond or bank at almost the same return

If you have no one to advise you perhaps you should draw up a criteria for your investment property taking a look at 5 or 6 markets and decide which one is best for you based on

- political situation
- demand for housing, how many new builds in that area that year
- housing market increases decreases last 2-5 years
- average rental return
- number of properties for sale and rent on the market
- current GDP and economic situation
- social aspect - can you speak the language, have you contacts there, how easy can you get there to solve problems

then focus in on a particular city, and do the same analysis there, then focus in on a developer or agent.

You need to be very careful with the management company, and check it out and be very careful of their contracts as I know lots of people who have had trouble in france with mgt companies. Better to use a developer who provides rental insurance in france or who has in house management company


www.sansonanddunne.com
 
I find it interesting that while numerous new Canadian ski/golf/ leisure developments are being marketed on this side of the pond as tremendous investment opportunities, a Canadian is is considering investing overseas.
 
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