Snowbirds and others looking to invest overseas must be as focused on an exit strategy as property buyers back home, Reporting from the floor of the Investor Forum Vancouver, Jemima Codrington reports.
Video transcript below:
Jemima Codrington: Buying overseas is an attractive but often daunting prospect for investors. We caught up with some international property experts to get the scoop at the Investor Forum, Vancouver.
So what are some common investor questions and concerns when it comes to buying overseas.
Deen Bissessar, EcoHouse
Deen Bissessar: I think the biggest hurdle for Canadians looking to invest overseas is really making sure that they know first of all who they are dealing with, that the company is reputable, knowing exactly what they are buying and figuring out more importantly what their exit strategy is and having a clear defined exit. You need professionals on the ground in any market that you are looking to invest in, whether that’s Brazil, Costa Rica, Bahamas, wherever that is in the world, you have to know.
If you are not going to be on the ground, that the people you are working with are capable of getting the job done, giving you all the due diligence information that you need, so you can verify and vet it the deal for yourself and then provide a clear exit strategy for that particular investment, whether it’s a resort property, any sort of rental income property, they all each have their own hoops and hurdles to jump through and you have to make sure that you know what you are getting into and how you are getting out of it.
Judi Shaw, Living Riviera Maya
Judi Shaw: If you are looking for a lifestyle investment that covers the cost of ownership and you see some capital appreciation over a couple of years, that’s the kind of investment that you will see securely with those expectations. You know you get to use it, you see some capital appreciation in the times you are not using it. If you want some cash flow to cover your investment that’s the best way to approach in a foreign country, especially a tourist destination like where I am.