REAL ESTATE IN OTHER PARTS OF THE WORLD 

PROPERTY FOR SALE (click here)

reasons why NOT to invest overseas (or inter-state)

• *** do you buy when you are on holiday and your judgment is also on holiday?

• *** what about currency risk, political risk?

• *** state regulations? (for example rent control legislation, the problem of sitting tenants)

• *** overseas property is expensive; will it give you sufficient return?

• *** management and accounting costs can be extraordinarily high

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• *** if the property is rented will you be able to enjoy the property and stay there anyway?

• *** is it not cheaper to stay in a 5 star hotel from time to time compared to the costs of a holiday home over the course of a year?

• *** if it is too far away to manage effectively, who knows if the property is being neglected?

• *** do you understand the tax laws? (ongoing property taxes)

• *** can you repatriate your capital? (withholding tax, capital gains tax)

• *** if the A$ appreciates you will make a capital loss; are you prepared to speculate against our currency?

•       overseas buyers (i.e. YOU) usually get to hear about a boom at the very last

these considerations do NOT apply to visitors thinking about buying in Perth :)