Not everybody likes to fly. Just sitting in the airplane seat, the pulse rises, the stress and with it the anxiety … Many people are afraid of flying, the plane's run before takeoff raises the heart rate, leaving the ground takes the breath away and every little noise, from the retraction of the wheels to the air pockets, causes quite a few people a fear that sometimes even makes them give up the flight.
Over the past years I have accumulated hundreds and perhaps thousands of flight hours. I got used to sitting in my seat, putting on noise-cancelling headphones and disconnecting from all the commotion around. Only rarely do I connect with those sitting beside me on a flight. That is how it happened by chance with the couple who sat down next to me and excitedly told me about their flight to fulfill a dream, to buy an apartment.
As the conversation went on I understood that the nice couple was full of motivation but definitely not ready for an investment. They were dazzled by the idea of a property abroad. She said it was a 3-room apartment at a price that sounded a bit expensive to me, and went into detail about the interior design, the electrical appliances and the furniture.
“Where is the apartment you are about to buy located?” I asked.
“In the neighborhood of…” he said, mangling the name of the neighborhood.
“Excellent. What do you know about this neighborhood?” I continued to ask.
“Not much,” the woman replied. “I understood there is a subway station there and not far from it there is a big mall.”
“Great,” I said, “but what population lives in the neighborhood? What socio-economic level?”
“What difference does it make?” the woman asked.
At this point in the conversation I realized I was facing 2 options: the first, to tell them bluntly that they are not ready, do not understand anything and are heading into a move that will bring them only headaches, hassle and no certainty that the return will be what they surely expect. The second, to wish them luck, hand them a business card, put on my headphones and sink into my music and my book. They would probably come back to me when things did not work out the way they expect.
Among the things that are important in my view before entering any deal is learning and market research. It is important that you know the city in which you are about to buy, and the apartment, the neighborhood, the street. What the city has in terms of employment hubs, the socio-economic level of the neighborhood (who comes to live in it), the services in the neighborhood, on the street, in the project in which you are buying the apartment, public transportation, educational institutions and more. It is important to know and study apartment prices and the level of rent paid in the neighborhood and perhaps even on the street for similar apartments. It is important to study and become familiar with the development plans of the city and the neighborhood (if there are any). There are of course additional parameters to check, but we may dwell on them another time.
I have gathered for you a few tips for market research when buying an international property for investment:
Before starting the search:
- Define your goals: What are you looking for in the property? Are you looking for a property for investment, residence, vacation, or a combination of several of these? What is your budget? What are your specific needs and wishes (size, location, amenities, etc.).
- Research the international market: Learn about the real estate markets in the various countries in which you are interested in buying property. Focus on market trends, property prices, tax costs and relevant laws.
- Compare properties: Use online tools and other resources to compare different properties in different areas. Pay attention to prices, features and location.
- Consider hiring an advisor: An experienced international real estate advisor can help you with market research, finding suitable properties and handling the bureaucratic process.
While researching the market:
- Conduct online research: There are many websites that offer information about international real estate markets. Use search engines, real estate agency websites and other online platforms to find properties and learn more about the market.
- Read articles and news: Follow news and insights about international real estate markets. This will help you stay up to date with the latest trends and developments in the market.
- Visit the countries in which you want to buy property: Traveling to the country in which you want to buy property is a good way to explore the market up close. You can visit properties, meet local people and learn more about the culture and life in that country.
Additional important tips for successful research:
- Be patient: Market research of this kind can take time. Do not expect to find the perfect property right away.
- Be prepared to do research: It is important to do comprehensive research before making a purchase decision. Do not rely only on the information provided to you by sellers or agents.
You are welcome to learn more from the following sources of information:
- International Real Estate Federation (FIABCI): https://www.fiabci.org/
- International Association for Real Estate Services (IRES): http://iresnet.net/
- International Real Estate Council (CIREC): http://www.cirec.net/
Good luck in the search for the perfect international property for you!
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית