04 steps to successfully complete an investment project abroad without traveling

Today, more and more expatriates and non-residents wish to invest in real estate on an international scale. However, thanks to the digitalization of the real estate sector and the creation of innovative digital tools, distance and expatriation are no longer obstacles to managing a real estate project abroad.

Also, mastering the phases of implementing an investment project for non-residents proves to be of paramount importance. In this guide, we present the 04 key steps of implementing a real estate project abroad without traveling.

1. Obtain a mortgage to finance your project

 As a non-resident or expatriate, checking your debt capacity is the first step in the process of managing a real estate project abroad. A mortgage is essential for financing the project. However, having a good salary is insufficient to obtain a loan.

This is an operation that can sometimes prove difficult because today, banks and other financial institutions are very strict in terms of acceptance criteria for a real estate loan for non-residents. In France, for example, expatriates and non-residents are classified by level of risk, among others:

• Entrepreneur;
• Local contract employee of a foreign company ;
• Local contract employee of a French firm : for an individual under a foreign contract ;
• Seconded : for an investor under a French contract.

To be granted a real estate loan in France when you are a non-resident entrepreneur is becoming increasingly complex and this, even if the salary is high. This loan is made on file review. In case you are eligible for real estate financing, your bank will then study your situation as a non-resident or expatriate using the following parameters :

• What salary and savings can you domicile in France ?
• What is your family and professional situation ?

It is based on the answers obtained that your bank will decide whether or not to finance your investment project.

To consult : Pinel Law Overseas

2. Conduct research and online property viewings

Research and virtual visits are a crucial step in the process of managing a real estate investment abroad, as it consists of finding the real estate property that meets your requirements. Thus, with the digitalization of the real estate sector, we are witnessing the emergence of a range of digital innovations in remote real estate management (purchase, rental, sale).

Digital tools such as 3D tours, virtual reality, electronic signature, digital lease and big data which are created to effectively support investors in the management of their projects abroad, regardless of their positions in the world. Also, you can search on peer-to-peer websites ; agencies or any other networks of properties for sale, such as lawyers, notaries or real estate networks for non-residents).

Furthermore, during virtual visits, it is crucial to pay close attention both to the physical details of the properties (electricity, water pipes, roof, floor, etc.) and to financial elements (property tax, charges, etc.). All of these elements that guarantee a real estate investment of quality.

3. Purchase the real estate property

Once the real estate property is found, the non-resident can then proceed with all the administrative steps to purchase said property. This includes the offer and the signing of the sales agreement; and the financing of the project and the signing of the final deed of sale, after which the non-resident or expatriate becomes the owner of the property. This process requires 03 to 04 months from the date of signing the sales agreement to that of the final deed of sale.

4. Find a tenant and manage the rental remotely

This is the last stage of the investment process. Here too, non-residents prefer furnished rentals on a medium and long-term basis because of the fiscal flexibility of their status, which makes it a tool specially adapted to real estate investments for non-residents and expatriates.

Although the average price per week is lower than that of a short-term rental, the owner is guaranteed an income throughout the year. This is much more difficult to achieve with a short-term rental. There is also much less work to do with entries and exits, key exchanges, cleaning, etc. This helps save money. Finally, medium and long-term tenants generally pay all utility bills.

• Self-management or property management company?

Self-management of a rental abroad is an option that is difficult to implement. You would have to check for damage, carry out repairs, conduct inspections in bad weather, etc. Therefore, it is realistic to consider a property management company as a reasonable solution. Depending on the companies, fees vary between 20 and 50% of the rental income.

Make sure to establish exactly what is and is not covered by these fees and match the available services to your needs. One of the best ways to find a good property management company is to read customer reviews online.

Conclusion

Wherever you are, you can invest effectively abroad without moving. A real estate investment project generally extends over a period of 06 to 07 months. However, it turns out to be very useful, even essential, to be accompanied by experts. Because, in addition to experience, they know the market, know how to detect and take advantage of good offers.