REI internationally?

Question

I plan to study abroad next semester in Barcelona, Spain.

Are there any REI opportunities internationally?

Is it practical to Invest internationally?

Is there something I should look into while abroad concerning real estate?

Does anyone else do it?

Ruta Uleviciute · Answer

I would be glad to answer anyone's questions about investing internationally in Mexico. We are both investors and owners of a real estate/ architectural agency in Tulum, and we have learnt a lot in the past few years about Mexican laws, got our trusted lawyers, etc. Happy to announce that Tulum was just named one of the top 6 places to invest in a winter house internationally by Investopedia.com.

Ruta

Benjamin Olson · Answer

Thanks everyone! So I'm getting that it is possible and many people do invest internationally. Also, that there are different laws, regulations, requirements, and loop holes depending on the area. But is there a benefit to investing internationally over doing it locally, or at least in country? Because if not, I just see it as the same financial rewards but with more risks and work.

Robert Edwards · Answer

Hi Benjamin

It's me again. As you can see above, I had a link removed. Just check out my profile and go from there.

All the best

Robert

Daniel Ryu · Answer

Best of luck with your international investments.

We have a few members of our meetup who are expats and they invest in Korea. They've done quite well by taking advantage of certain Korean real estate investing quirks. I've posted a few articles both on our website (below in the signature) as well as the blog I have here on BP

But those investors have also studied the local market a lot, talked with local professionals, and networked with other investors to help them understand the risks more.

The meetup I help organize out here in Seoul is all about overseas investors looking to invest in the US or other countries.

I don't know anyone investing in Spain, but I know a few of our investors, aside from the US and Korea, have also invested in Hong Kong, Ireland, the Philippines, Myanmar, Taiwan, etc.

It comes with risks.. but it's not impossible.

I'd say just try to hook up with others who are successful at it and see what you can learn from them. I'm sure you'll find some of them here on BP.

And if you're interested in learning more about our group, check out the website in the signature.

Colin G Murphy · Answer

Hi @Benjamin Olson

Robert above is absolutely right. As a long term "foreigner" based in Madrid, I can certainly confirm that Spain is a popular and safe place for overseas investors to buy real estate and it has been since the 1970s. There are generally no issues getting freehold title and very few restrictions. Here are a few observations for you:1. Closing costs are an issue: you have to pay 7-8% taxes on each purchase, plus another 1-2% in legal fees, which is crazy high compared to the closing costs in the US. Paying those fees hurts! 2. It´s not very easy to earn a lot of money renting vacation homes. That applies to Orlando as much as Barcelona by the way. More turnover, more maintenance, higher management fees and fickle income. Not my cup of tea and not recommended unless you plan to be there and keep a personal eye on it for a long time. 3. An American will find Spain to be a very pro tenant country, not a pro landlord country. Evictions and rent increases are a huge pain in the ass. Let me put it this way - I have been living in Spain nearly 10 years and despite keeping a periodic eye on the local real estate markets, I´m getting far better value for money investing in the US and UK.4. Like all world class cities, Barcelona is bloody expensive and finding a decent rental yield anywhere will be extremely difficult. Plus you have the language barrier to overcome. If you are in your 60s and looking for a special place to retire, then Spain is awesome, but that isn´t your situation.I´ll finish on a positive note by saying that Spain is a beautiful country and a great place to live. Being a student in Barcelona will most likely be one of the best experiences of your life. Enjoy every minute my friend and don´t stop chasing the señoritas. I got one when I was a student and we are now happily married with 2 kids.   Suerte!

Robert Edwards · Answer

Hi Benjamin

Yes indeed. Many foreigners, in particular, the British, Germans and Scandanavians, buy property in Spain, many of which then decide to rent them out. However, you have to be careful here. Spain is divided into autonomous regions, bit like your states in the US. Each region has its own set of rules with regard to privately owned rental properties. In some areas, you can rent out freely, whilst in others, you need a license from the tourist board. All the best

Robert

J Scott Hamilton · Answer

Probably the biggest thing to watch out for is whether a particular country allows direct foreign investment. For example in the "prohibited zone" of Mexico, foreigners are not allowed direct ownership, but get around that by buying 99 year leases. So you need to know what rights you have to title before getting into a deal.

Benjamin Olson · Answer

Thanks. Great to know of a place to go for information.

Do many foreigners own property in Spain which they rent out to tourists for something like vacation?