For many investors, the luxury property market continues to provide excellent returns and remains a profitable business venture. Indeed, as the international economy recovers, many investors have seen improvement in returns and taken advantage of developments in the property market. However, despite the potential for superb returns on investment, it can be easy to succumb to the risks and pitfalls of investing in luxury property overseas.
The first thing to consider is that not all countries operate by the same laws. This extends not only to the way people live their lives, but also in how they do business. As a result, property investment deals are subject to many different customs and laws in different places. When conducting business on foreign shores, it is definitely worth your while to study the local business and property laws before making any deals or worse, making a mistake that can’t be rectified.
For example, when conducting business in some places, rescheduling meetings with local dealers or business associates is hugely frowned upon. Whilst in the UK this may be seen as a perfectly common and acceptable thing to do, in other countries such as those in the Middle East, it signifies a massive lack of respect towards your associate.
In other places, it may be customary to keep skin covered up during business meetings with foreign partners; this is a particularly important consideration for negotiations when buying property for sale in Egypt or in Muslim countries, which often carry such laws.
As such, it is important that when you are planning to invest overseas, you do your research and ensure that you are aware of the customs and traditions of business in the country where you intend to invest. Use local help; established, reliable and experienced property lawyers and solicitors can help the process of investment and negotiations to run much more smoothly, enabling many of the risks to be taken care of.
The importance of being alert to the dangers and risks of foreign property investment cannot be overstated. Just a single mistake or needless risk taken can be disastrous for your future business goals. A poorly judged investment may lead to a tarnished reputation, which can make it much more difficult to obtain deals in the same country in the future. In today’s digital age, bad news travels at a much faster rate than good, so ensure that people are not speaking negatively of you and your dealings.
Are you an international property investor? Do you have intentions of investing in the global market? The overseas property investment market can be a hugely beneficial and profitable venture, but it is important to make sure that you are familiar with the laws, customs and traditions of each of the countries that you do business in, before you invest to ensure that you are able to take full advantage.