Investing in a foreign country has become easier than ever with the use of internet. However, foreign investing without the expertise of a specialist can yield many problems for those that are not experienced with investing in the foreign country of choice. Confronting obstacles with legislation and regulation, a limitation in knowledge that prevents effective investment and limited access to the right people to provide the best opportunity for a good investment, are amongst some of the issues that emerge when investing alone in a foreign country. The use of the right investment specialist can overcome these issues and provide the guidance to capture the right investment opportunity.
Foreign Investment Approval
For many countries, foreign investment requires approval by a Foreign Investment Review Board (FIRB). FIRB Policy applies to foreign investors who are considered ’foreign persons’. A ‘foreign person’ usually includes foreign persons, corporations, trusts, governments and partnerships. An individual is a foreign person if they are not ordinarily a resident of that country. This approval process is put in place to ensure that foreign investment does not go against a country’s interests and provides a system to keep a clear and up to date record of foreign investment.
Not all foreign investments require FIRB approval, which is why it is beneficial to enlist the help of a specialist that can advise regarding this. Most countries require an investor to go through a FIRB approval process if they are investing in a business, land or property. However, even then, there are nuances what kind of investment in these areas necessitates an application and what doesn’t. A specific specialist for FIRB approval can provide the relevant information on whether you will need to go through this approval process based on an understanding of the type of investment you are looking to make. If FIRB approval is required, they can then help to submit a relevant FIRB application on your behalf. Having this type of specialist onboard will allow you to know exactly what you need to submit to comply with the country of investment and if a submission is necessary, increase your chances of a successfully approved application.
What to look out for
Engaging the right specialist can also provide you with relevant local knowledge to make the right investment choice. Most investors are unaware of the risks of investing in a particular country and what to look out for. These include political, economic and legislative factors as well as a sound understanding of the local market. Local expert knowledge allows an investor to become aware of the risks, and aids to make for sound investment decisions and to avoid ineffective ones. Say you’re looking at investment properties for sale near Manchester, for example. The best way to approach this would be to investigate the area. Look into the amount of ongoing regeneration, the population numbers and the general quality of the area; all of these will help you discover the best investment opportunity for you.
Connecting with the right people
The right specialist will also be able to connect you with the right local people so your investment can be successfully executed. Depending on your investment, this could be the right lawyer, accountant, businessperson or in the case of a land or property investment – the right architect, town planner, builder or other land and property specialist. Some investments require a team of local people to ensure its success and consulting with the right specialist that has access to a local professional network can be beneficial to putting you on that road to success.
The decision to invest in a foreign country can be one that is filled with more risks and complications one may at first be aware of. The right investment specialist can overcome these risks and complexities by guiding an investor through the foreign investment regulatory framework, provide insight as to what to look out for in order for the investment to succeed, as well as also being able to potentially connect an investor to a beneficial network of people to enable an investment to flourish. These are just a few of the key reasons as to why enlisting the help of an investment specialist when undertaking a foreign investment makes sense and is a recommended practice.