Key Factors to Consider Before Buying Property in Asia
The increasing strength of emerging Asian markets is the main attraction bringing foreign investors to the region. Hence, the great interest to invest in its promising future now. The countries on everyone’s watch list include Thailand, Malaysia, the Philippines, China, Vietnam, and Cambodia. Key cities in each country have caught the attention of investors for a variety of reasons.
The potential of Chiang Mai in Thailand became evident in 2011. Moreover, it’s recognized as a retirement haven for its laid back lifestyle. Yet it still offers the modern conveniences everyone desires. Information like this provides you with the knowledge necessary to make a wise decision. We feature the top factors to consider before you purchase property in any Asian country.
Assess the Local Economy
Consider the strength of the local economy. Check if the residents are gainfully employed to be able to afford rent. If not, then your return on investment could be limited. Hence, it could take longer for you to recoup than you hoped for.
Study the Country’s Legal System
Obviously, your legal rights as a foreigner are limited in a foreign country. Regardless of your willingness to invest and your ability to pay, you need to abide by the country’s law. Hence, make it a point to talk to a lawyer. Preferably, a local who is well-versed in property investment law.
This will give you a better idea of what you can do and cannot do when it comes to buying local property. Bear in mind, some countries have strict laws when it comes to foreigners owning local land.
If you plan to use it for your retirement, then you might have minimal to no problems at all. However, you could run into legal issues when you decide to rent it out. In Thailand, foreigners can own a condo in their own name. Yet ownership is limited to only 49% of a single condo project, according to Invest Asian founder Reid Kirchenbauer.
Consider the Location
Take stock of the locale you’re interested in. Consider accessibility and existing infrastructure. Given the shortage of prime land in certain cities, you might want to consider a secondary location. This means looking at the potential of an existing location for future developments.
Keep these tips best countries to invest in mind before investing in any Asian property. By doing so, you’ll have lesser problems in the long run. Moreover, you’ll be able to benefit from it fully.