International Buy to Let Investments

International Buy to Let Investments

In Europe and several emerging markets a growing trend has developed, a high percentage of property owners are choosing to rent out their properties on a long term basis as an additional source of income. Due to low cost airlines and increased interest in worldwide travel has led to massive increases in travel and tourism. As a result the market for rental accommodation has increased beyond supply, making buy to let a lucrative investment option. While different countries offer different rates of returns, a good quality property would usually gain a 20-35% return on capital investment per year.

The most popular buy to let option is short term rental; the short term rental market specifically targets the tourism industry and can offer excellent returns. However, when renting on a short term basis it is important to maintain a high level of occupancy, for that reason many property owners choose to employ the services of a property management company. A property management company will generate clients and maintain the property for a small fee or percentage of income. Some property owners choose to offer their property as a long term rental option, long term rentals guarantee a monthly income, however the price per month will be considerably less.

Can any property achieve generate an income stream?

Unfortunately, the answer is No. There are many worldwide investment locations that are not suitable for buy to let investment. To avoid the potential pitfalls, it is important to do your research and get as much information about the country and development as possible. It is important to be selfless. Ask yourself what would other people want? It is important to keep your target market as large as possible, not a property that suits your individual requirements. Also look at the local area, is it safe? Does it have the necessary amenities? Is there a swimming pool? A savvy property investor is one that can match Demand with Supply.