There are several different options when it comes to investing your money in a market abroad. You want to ensure that you are going about your investment in a way that has the least risk for you and will maximize your profits. When purchasing property you need to consider how easy it will be to sell should you want to do this in the future. The same holds true for any of the nine Eastern European countries. By making wise decisions now and knowing all of your options you will feel much more secure in the future.
Your primary focus should be to determine what it is you hope to get out of your investment. For example, are you looking to purchase a somewhat run down piece of real estate in Slovakia, renovate it, and re-sell it at a much higher profit? Alternatively, perhaps you intend on building or purchasing a condominium space and renting it out.
Whatever your goals are for your real estate investment you should outline this before even considering any properties. This is also very important if you require a loan. No one is going to give you a large loan if you do not have definite goals and a definite plan of how to get there laid out in a well-thought manner. In order to make an informed decision you will need information from a variety of sources.
Once you have determined where and why you want to invest in real estate in one of the nine Eastern European countries, you need to determine how. There are two main ways to invest in real estate. You can do it either directly or through fund. Basically, if you choose to go the direct route you are dealing with everything on your own. Depending on several factors you should also make this decision fairly early on. Both have their pros and cons, for example with a fund there is less risk since you are not the only person investing. However, if there is huge payoff you are likely to get less than you would if you used the direct approach. You should consider how much time you have to spend on your venture and how involved you would like to get.
Once you have determined where you want to invest and whether or not you are going to invest directly or through a fund, you need to determine how you are going to finance your investment. There are several different options that you may have:
• Buy with cash (either directly or through a fund)
• Borrow money from your home country
• Borrow money from the country where your real estate investment is located
• Mortgage existing property
Several factors will determine whether or not each of the above options if possible or viable depending on which country your real estate investment is located in.
If you intend to borrow money to fund your real estate investment, you should check to see just how easy it is to mortgage a property in one the nine Eastern European countries. For example, you are more likely to be able to get a mortgage for property in the Czech Republic, Poland, and Hungary. This is because these are thought to be less risky. Depending on the type of real estate investment opportunity you are pursuing you are may know that this is not always true. However, this is up to you to convince the lenders of. Depending on the country you plan to invest in it may or may not be possible to apply for a mortgage from a bank outside the country. You may find it easier to attempt this from a bank located in the country. However, as in the case of Lithuania, they may be leery of lending to non-residents.
There are many ins and outs in regard to investing in real estate in one of the nine Eastern European countries. You should be very careful and make sure you have a large amount of information from a wide variety of source before making any firm decisions. You would be very wise to hire the services of a lawyer who is extremely knowledgeable in the laws and regulations governing real estate purchasing, investing, renting, and selling, in the country you would like to invest in.
Also, do your research when finding a real estate agent. You should also be sure to fully understand the tax benefits and implications in the area you plan to invest in. You do not want to be caught off guard or find that you could have saved yourself a good deal of money if you had only done things slightly different.
No matter what country or sector you intend to invest in, or which method of financing you plan on using doing your homework and enlisting the help of experts and professionals is a great way to ensure that you are making good financial decisions when it comes to investing in real estates in Eastern Europe.