Real estate development is a growing industry particularly abroad. A developer buys real estate with the intention of adding value to it somehow, then selling or leasing it for profit. Unlike holding the land, you’re actually developing through construction. As you might guess, this takes having some type of financial base from which to work.

Before leaping into real estate development consider your interests – what exactly do you want to develop? That focus point is important because you’ll need other experts to help make that vision into a reality. Professionals ranging from architects to typists play a key role in making everything happen on schedule. But building a mall is different than building a hospital (just as an example) and requires different skill and knowledge sets.

Additionally WHERE you plan to develop figures heavily into the picture too., particularly when developing international real estate. Step one is understanding the link between available land / property and tourism. You’ll definitely pay a little more for land in areas that attract tourists, but you’ll also get greater returns going forward. So, what does your budget allow?

There are other important considerations when developing properties abroad. Step one – research the local laws and building codes. Some areas have very defined restrictions on building heights, for example. Step two: don’t buy land without seeing it personally. You want to know that it’s accessible for work crews and that it truly suits your development needs. 

Step three is considering the option of green development. This is one of the fastest growing sectors in real estate. Consumers want ecologically-friendly real estate and are willing to pay higher sums for well thought-out buildings. A smart design in the right spot equals better assessment values.

Step four: consider hiring local people. This gives something back to the community in which you’re establishing yourself.

Step five: have a good international attorney and avoid “hype.” You want dependable information.

Remember that its essential to know the real estate market particularly with international development. Take the time to do research on the country where you plan to establish the development and make sure all your groundwork is completed to perfection. It’s not worth rushing a deal as that often creates critical errors that impact on your bottom line.

In Real Estate terms, beach properties are liquid gold. They represent the most desired houses and bits of land no matter where you are in the world. Of course, thanks to a limited supply, that means paying a little more for an ocean view than you might other properties. That means if you want an affordable beachfront home, wait until you’ve got a seller’s market, look into foreclosure properties, or consider international buying in countries where the tourist industry is still developing.

While buying in a seller’s market means initially the house’s value is lower, eventually real estate tends to level out. Remember that investing in anything is a long-term proposition. It’s not this year or the next that really matters – its 10 years down the road. Just take care that you can manage the monthly payments, and that you’ve done all your research into the manner in which the neighborhood might grow. It’s one thing if you’re adjacent to the water, but land and buildings further up can have that wonderful view transformed by new developments.

Go International:

Some of the least expensive beach property is outside the United States. Latin America in particular has some lovely oceanfront investment locations with incredible sand and surf. Costa Rica is one example. Here you have nearly an ideal climate for the beach bunnies, but you’re well within reach of other types of weather. Prices compared to similar locations in the US are very affordable. Equator is another illustration. Think of Hawaiian-like breezes and sun, and smooth beaches, and it adds up to a fantastic location. It’s relatively inexpensive to fly there, and the country welcomes foreign investors.

If those two locations aren’t quite your cup of tea, how about Granada, Panama, and St. Lucia instead? Again, you’ll get a lot more house for your money in these locations by about 50% (if not more). Note, however, that you should never sign any paperwork until you’ve personally visited the country in question and seen the property. That visit can save you a ton of money as in-person buying often means a better price than trying to work out a long-distance deal.

Think Belize:

Belize is rapidly becoming a good investment property location. You can get pristine beachfront property for very affordable prices. Better still the government here does what it can to make your buying experience trouble-free. You could do much worse than land in a region where people speak English, where you can dive a barrier reef, and where your U.S. dollar is worth twice as much as the local currency.

In terms of financial benefits, Belize charges to tax on any income you might make from your new beach house. You don’t have to worry about capital gains. If you use the space for business, there’s no business tax. And should you be so lucky to inherit a house, there are no inheritance taxes either.

While some of Latin America experiences upheavals, Belize is very stable. The likelihood of a coup is akin to one happening in Brittan. Additionally, you’re not stuck with just hunting for houses here. There’s still plenty of land for the taking if you want to build, or just hold it for appreciation. Note that not all that land is next to the water either. If you want mountains – you’ve got them. If you want forests – you can have those too. And all this comes with exotic wildlife, palm trees and weather that can’t be beat.

There are a variety of reasons a person may wish to consider buying foreign real estate. With the U.S. market teetering, real estate abroad looks tempting as an investment option. Additionally in some parts of the world the buying power of the dollar gives you much more house than you might otherwise be able to afford on your own turf. Having said all that – think long and hard about this decision and do your research! Foreign real estate transactions can be very complex and each country has different laws that pertain to exactly how you go about securing your new property.

Step one in buying foreign real estate is asking yourself where you want to invest. Hey, it’s a pretty big world. Part of determining that where, however, is also considering how you plan to utilize the property. If you’re buying so you have a vacation home abroad, it makes sense to look in areas where you enjoy vacationing. If you’re seeking real estate abroad solely as an investment, you want to look at regions that offer growing real estate markets so you can resell at a profit in the future. If you’re looking to rent out the property, you want to consider locations where folks hope to find a home away from home for a period of time. 

Once you begin narrowing down some options, step two is taking a long hard look at the potential country and/or cities reviewing their economy, culture, safety, tourism, regulations, and of course exchange rates. Note that when we say exchange rates we mean over the LONG haul. You want a solid feel for trends so that you can buy low and sell high. As for regulations, be aware that many countries are nowhere near as regulated as the real estate market in the United States. Agents often need no licensure to do business, so there is a greater possibility that you can fall into a scam. For this reason, it’s essential to hire a legal counsel who is fluent in the language of the country where you’re looking to buy, and who is familiar with the legal necessities for property acquisition.

Having said that, there are some real benefits to buying abroad. Some countries have no capital gains taxes. Others have no property tax. Others still are offering incentives to specific groups of people looking to invest in foreign real estate. Just be aware that tax laws, like any others, are subject to change. You’ll likely want to get in contact with a tax advisor before you buy to see how this impacts your income tax reporting at home too!

There is no question that buying foreign real estate can be risky. If you get antsy about playing the lottery, you’re not the best person to be buying abroad. If, on the other hand, you hope to diversify your investments and limit yourself to using only money that you can afford to loose if something goes wrong, then real estate abroad may be the perfect fit.

When you get to the point of thinking seriously about this leap, remember a few rules. First, it’s very unwise to buy where you’ve never been. The best research is up close and personal. Get those feet to the foreign country in question, the potential cities, and do your ground work. Secondly no matter what the real estate agent, developer, or ad reads – look at the property. You get what you see – no matter what other add-ons a seller may brag about (i.e. if that Olympic size pool is not there when you sign on the dotted line – it’s unlikely to ever appear).

Third, if you’re planning to buy the house and use it for yourself even part time – wait until you’ve spent a significant amount of time in that area. Take a few months off and rent. You want to buy with “insider” knowledge – not as a guest / visitor.

Fourth, don’t let anyone sweet talk you into more house than you want or need. That mansion on top of the hill with easy highway access might look lovely, but you won’t be making much on resale. Go for the bungalow on the dirt road instead. You can improve it, and when the area begins to grow, so will your investment.

Lastly be prepared for a potential loss. Even the most prime real estate (note California as one example) can become over-valued or experience a tumbling market. That’s why you never put more into the house than you are willing to loose – period. Take a look at the housing trends to know when its best to buy, and then buy smart.

We have a mini real estate boom going on in south Florida with a lot of people from Central and Latin Americaas well as Canada finding there are a many good deals in our Sunshine state. The deals don't stop in the south though, there are real estate bargains in central Florida. We need to let others know about these deals.Times have never been better than now to buy Florida whether its small home or a large farm.
Real Estate moves Florida and realtors move Florida.

I actually left Hernando County last evening for dinner with some Canadian friends staying in St. Petersburg. It’s become a tradition for them for the past thirty years, staying at the same gulf viewed terraced condo. A great respite after dodging the bitter last of a Nova Scotia winter that was one of the most unforgiving with snow drifts up to 20 feet.

One of my north of the border friends had just entered real estate as a career in her late 50's and I could not help to ask how the Nova Scotia market was compared to that of Hernando County.

The first thing that I learned is that my friend did not know about foreclosures nor short sales. They simply do not exist in the Province of Nova Scotia. While property values rose 100% or more here between 2003 through 2005, the values with our friends in Canada grew about 15%.

Nova Scotia homes continue to grow in value 2-4% a year, despite the world wide recession. She wrote three contracts last month, her first full month in the business for nearly $750000 and they all were approved.

Of course the down payment in her part of Canada is 30%. The economy is stable as well, except for areas such as Ottawa, where auto manufacturing is heavy and tied heavily to the US industrial economic sector.

As I listened the thought occurred that the US compared to Canada had certainly loosened credit criteria for home mortgages in the late 1990's. Canada never did.

The good news is that we agreed to a referral arrangement so her Canadian will be using me as a real estate resource for Florida homes. And Florida is a great buy!