Investing in international real estate

• 16 January 2020
• International News
• 2918 Views

The idea of investing properties abroad is not new and has always proven to be popular among wealthy Cambodian buyers due to many reasons, for example; the high standard of education offered in the city, good public transportation, being a leading tourist destination, favourable time zone, strong legal structure, a property safe haven etc. Furthermore, the comparative stable market conditions and strong rental demand are some of the main reasons why buyers are looking to invest aboard.

In Australia, demand for properties in Melbourne, for example, are higher than the supply combined with an average property price growth of 5% per year, especially in prime areas. The property markets in Brisbane, Melbourne and Sydney have rebounded from their depths and are starting to recover as buyer confidence improves and to keep up with the demand. Melbourne has posted the biggest gains this year – buyers are attracted to invest in areas with good public transportation and close to prestige schools and universities.

The most important factor for purchasing properties abroad in places such as Australia, Singapore or the United Kingdom is to support their children while they are studying there. According to the Times Higher Education (THE) World University Rankings, these countries offer some of the best universities in the world. Not surprisingly, there are students from different backgrounds, particularly from Asian countries enrolled. The number of students going to these universities is expected to increase over the coming years.

For most parents, they want the best possible future for their children – it often means educating their children in the best schools and they are also prepared to invest their time, and resources in choosing the best places to live. They want to ensure the safety and well-being of their children when they study abroad, as well as staying in a property which is a short commute to their school. However, the rental market can get quite expensive. Because of this, some parents prefer to spend extra on buying property instead of renting, to make sure their children can stay in the right area.

For those who purchase property abroad, they can often rent out these properties after their children graduate, or eventually resell them for a price appreciation on the resale market. For all these reasons and more, property developers are increasingly confident in their current and future developments and have identified opportunities to promote their developments, particularly to Asian buyers who have strong purchasing power.

Demand from buyers is likely to rise due to the continuing wealth growth in the region. On the other hand, the government of United Kingdom (UK) has promised to take Britain out of the EU with or without a deal. Following this decision, the pound sterling has been in sharp decline against the US dollar and this has made property investment worthwhile. It will only further encourage more investors to invest in the UK.

As the prospects of investment continue to improve, it is, therefore, the right time to buy properties abroad and to do so this year to get the best long-term value. However, to make the buying process more efficient, and to ensure buyers choose the right property to invest in, it would be wise to consult a real estate professional, before making any purchase decisions.

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