Start with realistic demand
An investment only performs if there is genuine, durable demand — from tenants, future buyers, or both. Look at the underlying drivers such as employment, tourism, infrastructure and population trends.
Be sceptical of demand that depends on a single factor or on assumptions that may not hold over your investment horizon.
Understand gross versus net yield
Gross yield is annual rent divided by price; net yield deducts running costs, taxes, management, insurance, maintenance and periods without a tenant.
Net yield is the more meaningful figure. Treat headline gross yields and projected returns with caution — they are not guarantees.
Account for all costs and taxes
Model acquisition costs, ongoing costs and the taxes that apply to rental income and to a future sale. Taxes and allowable deductions vary by country and by your personal situation.
A local tax adviser can help you build a realistic, country-specific picture.
Currency risk and financing
If your income and the asset are in different currencies, exchange-rate movements affect your real returns. Consider how you will manage this over time.
If you use leverage, understand how interest rates and loan terms affect both risk and return.
Vacancy, management and practicality
Budget for realistic vacancy and for professional management if you are not local. Good management protects income and the condition of the asset.
Consider how easy the property will be to let and to maintain from a distance.
Legal structure and developer risk
How you hold the property — personally or through a structure — has legal, tax and succession implications. Take advice before deciding.
For off-plan and new-build, developer risk is a central consideration; verify track record, permissions and any buyer protections.
Plan your exit before you enter
Think about how and when you might sell, who the likely future buyers are, and the costs and taxes of exiting. Liquidity varies greatly between markets and property types.
Above all, obtain independent financial, tax and legal advice tailored to your circumstances before committing capital.
Frequently asked questions
This guide is provided for general information only and does not constitute legal, tax, financial, residency or investment advice. Rules, costs and processes vary by country, region and personal situation. Always obtain independent local advice before making a property decision.