Top Ten Reasons why Overseas Investing is still Strong

1. New Markets. Long-gone are the days when investors only had easy access to more traditional markets like Spain and France. With globalization as an ever-increasing trend, property markets around the globe are becoming more accessible to potential investors where excellent returns can be achieved. The World is still a big place and you can rest assure that there is always a market on the up! However, to find a growth market is by no means enough - any deal must be well structured and competitively priced in order to warrant investment.

2. Multi-Purpose. Investment (in property) overseas can serve several purposes and motives, and are more than just profit motivated at times – i.e. people invest to not only make money, but also due to lifestyle changes, to obtain a holiday home of their own or for a retirement home.

3. Currency. Profit can be achievable through currency fluctuations (i.e. currency fluctuations can boost profit if the currency in the country you are investing in strengthens against your own)

4. Leverage. Financing options vary from country to country. If capital growth and yields are equally as strong in two countries, the one with the best leverage options or highest LTV will yield the greatest capital return in the long run.

5. Diversification. Internal market conditions and policies affect each country differently and the effect of behaviour of an industry can cause devastation in one country while cause a boom in another. For example, rising oil and commodity prices are currently having grave consequences for USA, while the companies whom supply oil and commodities, which are based overseas, are undoubtedly experiencing very profitable times.

6. Varying Levels of Supply and Demand. Supply and demand levels vary drastically in all industries from country to country and perfect or monopolistic competition equilibrium is not always in place in overseas markets. By investing in such markets overseas at the right time, profits can be realised. For example, the current water shortage in China may provide an opportunity for FDI within their water industry and yield higher returns achievable in the current US market due to drastically varying levels of supply and demand.

7. Tax Breaks. Returns available through investing overseas can be maximised by minimising tax if investing wisely. For example, Lithuania has tax rules in place with several countries meaning that profits gained from investment in property in Lithuania can be transferred out of the country without certain taxes becoming payable. This can boost profits and should be a major factor to consider for any serious overseas investor.

8. Policy Breaks. Alternative investments available, which may not be available in your native country. (Property and tax aside, all countries have different laws, completely different structures in many ways, which can lead to profitable opportunities). An example of this can be found when comparing the UK and USA health systems. Investment in a new health product in the States that is privately produced and sold could be far more profitable than in the UK where the same product is likely to be produced, highly subsidised and sold at discounted prices in the UK.

9. Exploitation of Inefficiencies. Investment overseas inevitably means the exploitation of inefficiencies in certain instances. For example, the production of certain items of clothing is far cheaper in India than in the UK.

10. Spread of Risk. Similar to point 5, all successful investors talk of the spreading of risk over several markets to ensure singular events and / or policy changes does not gravel-affect one’s investment. The same runs true for the countries you invest in. For example, recent terrorist attacks on the London Underground caused the withdrawal of overall investment in the UK and additional investment in the markets in India.