Foreign Real Estate Investment

[shibuya]

I am thinking of venturing out into foreign real investments especially in land scarce countries like Japan. What do you are the major considerations when making such forays?

[admin]

Donald Trump likes to say the three most important things about real estate are Location, Location, and Location.

To answer your question I think taking the leap into investing in international markets comes down to Stability, Stabilty, and Stability. You must do a great deal of due diligence to determine how stable a countries political climate is. As what is a good Location can turn into one of the worst locations over night if the government locks out foreign investors or a civil war breaks out.

Another issue you must note is how the culture works and whether lending decisions are made on the financial sense of a deal or based on who has what connections. This risk issue of how financial decisions are made delivered a devastating blow in the 90's to Japan. Lots of bad loans were made and those that defaulted were protected in an effort to see that they saved face. This left Japan in a long drawn out recession.

[agape]

Besides location and stabilty, I think another consideration is ownership law as most countries impose some kind of restriction of foreign ownership of property.

[spacy]

Not only foreign ownership laws are important, we should also have a basic knowledge of the host country's business and commercial laws. For countries like China without a strong rule of law tradition, foreign investments in property and other investments are especially risky.

[admin]

Spacy,

I agree with you on this one. I would also say that plays part in what I call stability though.

[clintonbaisley]

Originally Posted by agape

Besides location and stabilty, I think another consideration is ownership law as most countries impose some kind of restriction of foreign ownership of property.

I Agreed! Nice find .. Good stuff!
Thank you for sharing your information...It was really very helpful for me.

[rajulratna]

This is disgraceful, Laeeque Ahmed needs to be stripped of his license.
Not only is this disgraceful, its troubling for new comers to this country too. We leave our countries because of the corruption and fall in the hands of agents like Laeeque Ahmed. Shame!