Real Estate Investing
Long-distance real estate investing is a trend that few investors have experienced. Many have been part of the investment world for years and have always been involved in local markets. However, that is changing. Locals markets are more often than not, expensive and have limited real estate options. That is why you should consider long-distance investing.
In this article we will discuss why technology has changed the way investment is done, the information that is now available at your fingertips and how you can find help after you have purchased properties.
Why Long-Distance Real Estate Investing Works in 2021
Years ago, it would have been super risky and almost unheard of to be involved in long-distance real estate investing. Most people were taking on investments close to their own home. However, nowadays a high percentage of real estate investors choose to invest abroad. This is due to the rise of the internet.
With a little online research, you can find out almost everything; this includes finding property to invest in, sending official documents abroad and keeping in contact with people involved in the investment world.
All of this was virtually impossible before the internet, especially as you would not have any visuals of the property. Investors would need to travel, possibly thousands of miles for a potential investment. But all that has changed. With modern technology investors are able to see exactly what the property looks like.
This can be done in various ways, such as the following:
By simply having a smart phone you can see a potential property. All you need to do is schedule a video call with the developer, contractor or manager etc. They can show you around the property whilst on the call. Although seeing a property in person is more ideal, a video call means you can visually see everything in the present time (it cannot be faked).
Virtual Reality Tours
This is arguably one of the best high-tech ways to see a property from thousands of miles away and some companies and investors are beginning to see the benefits from it. Virtual reality tours can be sent to you as the potential investor or you can sometimes see these on the developer’s website. It provides a tour at your own pace, definitely less vibration than the option mentioned above and no chance of being disconnected.
What to Consider Regarding Long-Distance Investment
We have said this many times on numerous blog posts, but you must always research the location thoroughly before taking the plunge and investing. Here are some factors you should consider:
Education Facilities and System
You may be considering the investment for your family or as a way to earn a passive income through rent. Either way you will want the property to have access to excellent schools and other educational facilities.
A Low Crime Rate
This goes without saying but a low crime rate makes your property much safer. If you plan on investing in a property for vacation purposes then you will want to feel sound about your property when you are not in the country. Of course, you can install security systems as well but you want to be investing in an area that is safe to begin with.
A Growing Population
Without a doubt this is one of the best indicators for an excellent location. A growing population means there is a demand in the real estate market. This growing demand will mean that there is a huge supply of renters and potential buyers. It is also common for these people to pay above market price due to the competition.
Check Employment Levels
A good employment rate and secure industry sectors will give positive indicators that the local economy is strong.
Age Range in The Area
Research into the age range within the area. You want to look for a good number of young families and young people in general. This usually suggests that the market will grow within the coming years.
Finding a good property manager for your property/properties will be vital when it comes to long-distance real estate investing. By working with a property manager, you will have access to a professional that can help you with finding tenants, collect rent and oversee other daily duties as well as helping with general maintenance and repairs. The employment of a property manager will also reduce your stress and worries concerning the property.
Long-distance real estate investing may have been inconceivable a few years back but not in 2020. Yes, you may have heard that investing in your local market is the way to go but don’t limit yourself. Local markets can be expensive and could well have limited options. In the modern world you have access to technology that allows you to invest safely and securely. As mentioned, the technology available today allows you to see and experience properties without travelling thousands of miles. You have access to research everything you would need to know about the market and location as well as have consistent communication with someone in the area to manage your property.
Related: Influential Real Estate Investing Books for Beginners