Today we’ll be talking about should you go and invest in your own back yard? And the answer is absolutely, yes! Especially if it’s your first purchase.
Now I know lot of brokers and in the property investing world you hear a lot of news about hotspots around the globe whether it’s Morocco or the North of England or the South of France or wherever it is, there are agents trying to get you to invest in international property.
More control for better ROI
As an up and coming property investor, the most important thing for you to understand is that the more control you have over your investments the better your return on investment (ROI) is going to be. If you’re sitting, let’s say, in Australia you can’t really manage your property, let’s say, that’s in England, so you will have to rely on other people to do that for you.
Now don’t get me wrong that’s one of the great things about property investing is that there’s a tonne of people who can manage your property portfolio but of course they charge you a fee. So, every time you use somebody else that’s going to eat in to your profits.
It’s about gaining experience
If your strategy is to buy 15 or 20 properties or you plan to have a large portfolio somewhere abroad then potentially you can afford to hire your own team and if they can manage your portfolio well, then your ROI will equal or be exponential to the costs of investing in your own country.
If that’s not the case, if you want to buy one property, then stick to your own back garden, your own locality, your own city because number one: you’ll get more experience that way – I always recommend that if you’re starting out you should manage your property as well, and of course your lower costs will increase your returns.
Investing internationally means less control.
So, very important to understand that the more control you have over your real estate, over your property, the better return you will have.
Now, that doesn’t mean that I don’t like investing internationally, I love it because it means I can travel the world and look at my properties and actually every time I go on vacation anywhere new I’m always at the estate agent and my wife’s complaining saying stop looking at real estate you’re on a holiday but you know what, I can’t help it, I love real estate!
That said…if you’re just starting out do something in your own locality become an expert, find the good deals, learn how to manage them and then later you can look at investing internationally.