One of the biggest considerations when deciding upon making an investment in property is always going to be the location. You will find some investors that will only buy an investment property within a certain radius of their location and you will find some that will buy in all four corners of the world and then of course you will have some investors that will do a mixture of both and take a spread risk element to their investing strategy and portfolio.

Location is a critical element to your choice of property, because not only do you need to consider things from the pricing point of view, you also have to consider the logistics of managing your property.

From a financial point of view you need to consider:

• Market Prices – Are you buying at a low enough price to make a profit

• Rental Market – Is the rental market in the area strong enough to not only get a tenant but to also make a profit on the rent

• Resale Price – If you were to sell your property on, would you make a good return on your investment

• Development – If your property needs improvements, are there enough tradesmen to make the quotes competitive

• Letting Agent – If you decide to rent, how much is the average price of letting agents in the local area
  

 

As you can see, from a financial point of view there are various considerations but you also need to think about the logistical side of things.

When you are local to a property you can almost be in full control, with or without a letting agent allocated to manage your portfolio for you. When the property is located overseas then the chances of your visiting that property regularly are going to be slim and this means that you can not keep on top of the little things that can quickly become issues if they are not sorted.

Overseas properties will also have very different rules when compared to buying in the UK. The purchase procedure laws will be very different and you also need to consider things like the laws that would control evicting a tenant or what would happen legally if a short term renter destroyed your property after having a party for example.

Buying in your home country is always going to be easier from a legal and logistical point of view, after all, you will know your own country's laws and you will be able understand the state of the market much better. From a financial point of view it is usually far more costly to buy in your own country, which is why so many people do invest overseas.