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Overseas Investment – Saving Money Through Foreign Assets

There are various ways to invest on foreign assets. Acquiring real estate properties, purchase shares or betting on stocks are among the different forms of investment that investors can exploit overseas.

Overseas InvestmentPHOTO BY FLICKR.COM/CHEA PHAI

Overseas Investment - Best Countries to Invest On

According to World Bank, China still ranked the highest as the country of choice for an overseas investment. Not being moved from the top rank since 2007, investors are drawn to invest to this country because of its continuous economic growth and magnificent adjustment towards globalization. With telecoms, mineral resources, energy, electronics and power as their major industry, it is expected that this country will remain on top rank for some more years. In terms of property overseas investment, Brazil and France are the best choices. While, the USA is still a great place to make an investment, amidst the economic crunch it experienced, there are still hundreds of great industries that investors can take part on in this country. The UK telecom is still a great industry to invest on. For affordable yet trainable human resources, India is currently the best choice.

Overseas Private Investments - Different Forms of Acquiring Private Equities

Overseas investments come in various forms. This is a financial strategy used by foreign investing firms to finance an existing foreign company for the purposes of the target company’s expansion, re-launching, restructuring, development of a new product, management or ownership. The most common way these overseas private investments are acquired is through Leveraged Buyout. This is performed by purchasing all the shares of the target company. The financing company will reformat the target company to increase its value. Once the value of the target company has increased, the financing firm can opt to either re-sell its shares or keep on developing it. Another form of overseas private investments abroad is Venture Capital. This is normally performed by established companies to aid a developing company with their new ventures, product launch or marketing strategy. Growth capital, on the other hand, is a purchased made by small investors to aid a foreign developed company in their expansion or launching of a new product. Distressed and special situation investment is meant to help monetarily stressed companies to recover from its financial crisis.

Overseas Property Investment - Various Ways to Invest

There are four ways of acquiring an overseas property investment. Depending on the rules of the country regarding foreign ownership, a foreigner can acquire through outright ownership, fractional ownership, club membership or resort/condominium residence. Outright ownership, wherein no restriction is imposed on the purchase, is still the most preferred way to purchase a foreign property. However, not all countries are amenable for a 100% purchase of property from a foreigner. If the country has this restriction, a foreigner can opt for a fractional ownership wherein the purchase is shared with a local of the host country. This means that they are part-owners of a property. A club membership on the other hand is a form of investment wherein you pay for the membership that allows you to use specific properties owned by the property management company. The purchasing of rights for a resort or condominium, on the other hand, is a very popular form of foreign property investment. Through this investment, foreign investors can use the facilities in a condominium and resort according to the agreement they signed upon purchase of the right.

Written by Katherine Murphy

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