Tips on maximising the yield from your expat property investment

Managing an overseas property investment as an expat can be hard work and worry if you’re not clued in.

Nowadays, many expats are investing in properties back in the home country or are buying ahead in their chosen retirement haven, letting the property out until it’s needed. Whether you’ve bought a second home for holidays, a retirement home or made a buy to let investment, looking after it from a thousand or more miles away can be a nightmare. If you’re working in another country’ you can’t just fly back to deal with dodgy tenants, a leaking roof or a break-in, meaning you’ll need an agent who can get there fast and sort things out. Especially if you’re invested for your retirement, you’ll need to plan carefully and well from the start as mistakes can be very expensive.

New investors who’ve gone in head first can easily spend around £40,000 over the first few years unless they’ve researched currency transfer costs and unnecessary mortgage expenses. Expats who’re not familiar with the ins and outs of currency exchange rates and transaction costs before arranging buy to let finance can rack up totally unnecessary costs simply by making regular loan payments from overseas. Using a reputable specialist currency exchange company and comparing daily exchange rates across the entire market can save large amounts, making the investment even more profitable. For example, the UK’s high street banks charge fees of up to five per cent per transaction which, on a property purchase transfer of £500,000, will cost an amazing £20,000 – money that’s better kept in your account.

In the same way, paying off your buy to let mortgage by transferring bank to bank can cost around £4,000 a year - £20,000 over the course of five years. Buying for investment in the UK is still popular with British expat professionals living and working overseas, with many using property as part of a balanced portfolio as, in spite of Brexit, the UK is still considered stable and safe. As with property investments anywhere in the world, buying sensibly is a crucial factor, with experts recommending new developments as they require far less maintenance and may also be protected by a time-designated guarantee. They’re also likely to save money on letting and managing agent fees, thus protecting the investment’s yield.