Investing Overseas: Property, Stretching Money, Market Knowledge
If your domestic market is just too competitive for you, then looking overseas is the sensible thing to do. It’s not that you’ll find some kind of magic saving grace, but you will stand a better chance of getting your foot through the door. This is especially true when you come from a country with a strong currency. Strong to what you might ask? Well, currently a majority of the economic markets in the world see the USD as the reserve currency. You’ll need to figure out how well you would be doing if you were to compare your currency value to the dollar before you go ahead with your options. Thankfully, the USD is actually not that strong compared to most other developed nations in the West. But is money value the only thing to consider when investing overseas? Of course not.
Buy cheap assets
Perhaps the largest and most powerful of all pulls for overseas investors is buying up cheap assets. This might be commercial property, houses or even some kind of high-rise building for apartments. The bottom line is, this is should be your very first course of action. Property will peak any sound of mind investor’s interest, because much like in modern nations property is an extremely appreciating investment. It will gain in value with an absolute guarantee, which is why you should look to be quick or be first. If you’re unable to buy property outright, then look for joint investment ventures whereby you at least get some piece of the pie in various assets.
Bang for buck
The most important thing for overseas investors is getting back for buck. If you have a strong currency then you can sometimes have 3 or more capital than you would back home. For example, the ever strong GBP amounts to around $1.7 Canadian dollars in 2019. This means that you’ll have almost twice the capital investing in Canada than you would in the UK. your money stretches further and holds more weight when investing in a nation with a weaker currency. Check out the CAD Outlook if you want to know more information about why the current valuation is the way it is. US Fed rates have a direct impact on surrounding currencies geographically speaking. The trading links and their current temperament are also a big impact on investment opportunities and currency strength. NAFTA for example is one of the deals that is having a direct impact on the CAD.
On the ground
It’s not wise, it’s common sense to know someone on the ground when investing overseas. Speak to someone who knows the market that you’re interested in, preferably someone who lives and works inside the country. You’ll receive good advice and be able to gauge the mood in the markets to see whether it’s bull or bear.
Find out what markets are bullish and which ones are bearish in the country you hope to invest in. Make sure you’re getting some kind of exchange advantage so your money stretches further. Look to buy up as many cheap assets as you possibly can and be quick about it.