Because Australia is only a small part of the global economy and because the grass always looks greener on the other side of the fence, I am often asked whether it is a good idea to invest in overseas properties.

"You can get them for no money down" I am told, OR

"You can buy foreclosures for just a few thousand dollars"

Then I am told you can't do the types of deals here that you can do overseas.

The first thing you need to ask yourself when considering the options is: "Is the information I am evaluating FACT or is it just someone's OPINION?

I have found it far more reliable to make decisions based on facts rather than on someone's opinion. That's why I suggest you need to distinguish between sales talk and factual information.

Some things sound easier and far more exciting when presented by an overseas based guru and there is a tendency not to explore the possibilities in your own back yard first.

Remember, many of us became millionaires right here.

So, should you invest overseas or not?

When it comes to equities or mutual funds, I would say that it is far easier and practical to transact the deals, since you can do it over the internet, than it is to buy and sell property.

It is also easier to keep an eye on the progress of your overseas equities or mutual funds than it is to see how your overseas properties are going.

The other area is that of finance.

As a non-resident you will find it much harder to raise finance and you will require a greater equity percentage than a resident borrower.

Now in the case of overseas real estate, there is an interesting possibility since some mortgages in certain countries actually attach to the property rather than to the borrrower.

This means that you can assume someone else's mortgage and thereby eliminate the need to take out a mortgage of your own against that property.

So, once again, should you or shouldn't you?

Probably the best answer I can give you is: it depends on your long term objectives and whether you can justify the set-up, travel and communication costs through investment returns which are substantially higher than you can achieve on your home turf. Often you can. You may also look upon the travel as a benefit rather than just a cost.

It also depends on your commitment to learn and understand the different market conditions, laws and risks associated with other markets.

You need to ask yourself how you will deal with currency fluctuations, taxation and estate planning issues.

Will you set up overseas entities to control your assets and if so, what will they cost to set up, manage and maintain?

The other issue you need to consider is what proportion of your assets you want to have overseas and how many you want to retain in your country of residence.

As you can see, it's not just a simple yes or no.

About a year after we were married, my wife and I flew to San Francisco to attend a conference. My job at the time gave me the opportunity of going overseas at least once a year on business.

We made a stop-over in Hawaii and during that Friday afternoon we strolled around exploring Waikiki.

We were in our mid twenties and excited about the possibility of jetsetting around the world.

There were people on every street corner offering something for free. It was amazing.

Eventually we accepted an invitation to a free dinner.

When we turned up a few hours later, we found ourselves in a presentation on timeshare holidays. There were about 30 or 40 couples from around the world in that room and they were signing up for these timeshare holidays by simply putting a deposit on their credit card.

The atmosphere was exciting. Every time someone signed up, loud cheers would fill the room and everyone clapped.

After discussing it between us, we decided to sign up too, particularly since we could swap our holidays around the world and there were a few destinations in Australia as well.

That was a huge learning experience for me and one that taught me a big lesson.

All weekend I agonised over this decision and messed up what should have been a relaxing weekend.

When we got out of the high pressure sales atmosphere of that room we thought about our decision more carefully and rationally and came to the conclusion that this timeshare deal wasn't right for us.

On Monday morning I tracked down the office of the company and retrieved my credit card voucher and tore it up.

Even though we didn't lose any money as a result of this adventure, it taught me to do some research before I jump into things and consider the pros and cons carefully.

It taught me to think about whether this is really a good deal for me or whether I am changing my plans and circumstances to suit someone else's sales objectives.

Have I made some dumb decisions since then?

You bet! However this learning experience probably saved me from making more.

When it comes to making substantial investments overseas, you need to properly understand the commitments of time and money that go with them and ensure that your level of investment and the returns justify that.

About the Author

Hans Jakobi has a mission. He is dedicated to teaching ordinary people how to take control of their financies and build wealth. Hans teaches that you are the only person you should trust with your money. He is a Chartered Accountant with a Degree in Ecomomics and Accounting. After applying his knowledge to a multi-million dollar investment portfolio himself, he now teaches the keys to achieving financial independence. He says that you have reached financial indpendence when you no longer have to work for money, because your money now works for you. Click here to learn more about Hans Jakobi's teachings: http://www.moneysecretsonline.com To subscribe to his Free 15 Day Financial Freedom NewsLetter send email to: msonewsletter@onlinemediasolutions.com