Increase Your Overseas Property Portfolio
Let us ask you a few questions:
Have you an existing property in the more established overseas property markets eg Spain, Portugal, Germany, France, USA, Bulgaria - even Turkey, just to name a few ?
Have you ever considered using the equity you have built up in your property to purchase another property in Turkey - a new emerging overseas property market where capital gains could be quite substantial?
Its simple; why don't you take a look at an 'equity release' mortgage product in each of the counties where you properties are located. Use the equity from your current overseas property to fund the deposits and other costs for your new Turkish properties. Then with a mortgage taken out on the new property, the job is done. You have now increased your overseas property portfolio!
Let's just go over that again.
Where a emerging market has not developed their mortgage infrastructure , if you have a portfolio of properties in the more established property markets as stated above that already have very mature mortgage markets with flexible mortgage products. You can release equity in those countries, and depending if that mortgage product allows to repatriate funds, you could use those monies to purchase in an emerging market such as eg: EGYPT, Brazil , Morocco etc, where mortgages are not yet fully matured, and maybe has not yet the facility to remortgage as yet. Also another angle to add to this would be to use the equity and depending on the amount that is available, split it over a few properties as deposits, then mortgage those properties. If this is done then, it is suggested to look for properties that have rental guarantees. The key would be to find the correct re remortgage products.
This strategy could be used on a on-going basis, to continually build your overseas property portfolio. You could remove equity as soon as your new property has appreciated enough, then move forward into the new emerging markets.
Why use ready liquid funds when there are products you can utilize with either your existing Turkish property or property(ies) you own in other countries, and let your rental income from the right property, pay for the mortgage(s)?
Next Step:
If you are keen on buying to let to maximize your positive cash flow, or simply to increase your overseas investment portfolio (building equity), the key to developing this concept, is to find good partners ie: a good TEAM. I know it sounds tacky, but do you know what the word TEAM stands for?. Together, Everyone Achieves More , keep this in mind.
What I mean by this is; you need to find A) A property organization that sources the overseas properties that fit the above key requirements, & keeps you fully informed of worldwide property trends, B) a overseas Mortgage Specialist, who has ‘cutting edge’ mortgage products &C) both legal & accountancy specialists who understands the countries you choose to invest in. Putting this Team together, is as important as locating the deals.
Food for thought isn't it?
Mark Gannon is a Director, of Global Mortgages Direct. You can contact Mark on +353 56 770 6807 or markg@globalmortgagesdirect.com
www.globalmortgagesdirect.com Ireland First international Mortgage Brokerage Service