Can You Still Profit With Fly to Let Property Abroad?

Fly to let property investment was all the talk just a few years ago – anyone who wanted to be someone had to have a property abroad that was earning them a small fortune!  But the truth of the matter often was, people were not necessarily making as large a profit in the form of rental income from their ski chalet in Bulgaria or from their apartment in Turkey…

So what went wrong?  Well, everyone was sold the hype that they could make money out of buying any old property in any old destination abroad.  But of course that just wasn’t true.  Just as many buy to let landlords in the UK have failed because they bought the wrong property in the wrong area, so the same issues occurred overseas.

What’s more, in some nations where regulations aren’t as strict in terms of what can and can’t be said and promoted during the marketing of a property, lies were told and properties were mis-sold.  So, the question on your lips may perhaps be, can you still profit with fly to let property abroad…well, read on to find out!

The truth of the matter is, there are winners and losers in the property game all the time.  The winners aren’t just lucky – they follow the following four rules and apply not only common sense to everything they do, but they do also tend to be a little sceptical of hype, and only ever look at the bottom line of their investment!  If you too want to succeed in the overseas property game now that the credit crunch is easing whilst many nation’s property markets remain heavily depressed, here are the Shelter Offshore tips for becoming a successful fly to let landlord: -

Choose the Right Country and the Right Property

We have learned that Bulgaria’s tourism market is not a high-end, high returning good long-term bet, at the same time we have learned that there are pockets of the Turkish property market that are booming on the back of continually increased tourism.  There are parts of France that are eternally popular, parts of Spain that will never be popular, and massive countries like Australia or America where there are massive opportunities – but only if you pick the right state.

The key to having a successful fly to let property is choosing the right one in the right country.  For a start you need to be no more than an hour’s drive away from an airport that is well serviced by flight operators – and not just cheap flight operators either as they have an annoying habit of going bust and/or cutting routes!  You need to look at tourism trends, see where there is serious long-term desirability and not just where a destination is being billed as the next big thing in case the next big thing is a flash in the pan fashion statement – Cape Verde anyone?!!

So, pick the right nation and the right property too, and you will be well on the way to making a success out of your fly to let investment.

Set Your Budget & Sort Out Your Money

You have to set a very careful budget and you have to stick to it.  If you get the money right from the very start, you should not stand to fail.  Many in the UK who have bought buy to lets in Great Britain have failed because they have over extended themselves – and there are even fewer security buffers if you buy abroad, so get it right from the start.  Know how much you can afford to spend on a property and know that there will be months when your property is unoccupied.  You need to look at the lowest returns predicted for the market not the highest, and you need to make sure you can survive financially speaking if you only hit the very low targets.

By being 100% secure in what you buy any profit will be a bonus!

Know Your Rights and Your Tenants’ Rights!

First things first you have to be sure that you know the ins and outs of the legal process to buy, own and rent out your property – and know that in some countries you’re not actually allowed to be a landlord if you’re not a local resident!  Make sure you and your chosen property meet all requirements and obligations, and also make sure you are 100% happy with what you will have to do as a landlord to protect your tenants.

Learn up front about your tenant’s rights – for example, in some countries it is nigh on impossible to evict non-paying tenants or to claim money back off those who damage a property if they just rent it for a short holiday.

Get the insurances you need in place, and make sure you, your property and your tenants are all well protected.

Look to the Long-Term

Investing in property is NOT a get rich quick scheme – yes, some have bought and flipped and made a mint, but they are in the minority and they are taking a massive risk if the whole basis of their property investment strategy is making a fast buck!

If you want to make a living from your property investment empire then start small, always make sure what you take on is manageable, don’t get greedy and ultimately look to the long-term.  You are very unlikely to make a killing on your fly to let investment overnight, but over the long-term you could do very nicely out of it thank you!