Buying an investment property overseas: how to send and receive payments

Aussie property prices are pretty high when compared to other markets overseas, leading some investors to broaden their horizons and scoop up properties internationally instead. 

Whether in Asia, the UK, Europe or the US, investors are looking at cities abroad to find lower median house prices, high capital growth and potentially bigger returns. But investing in property overseas means sending and receiving money internationally, whether it’s putting down a deposit, paying off your mortgage or receiving regular rent payments. 

Here’s how you get the biggest bang for your buck out of your investment property overseas. 

Buying a property overseas: Should I use a bank or an International Money Transfer? 

When buying a property overseas, you’ll often face familiar costs like a house deposit and mortgage repayments, meaning you’ll need to send money abroad. Using your bank to do this, however, isn’t usually the most financially savvy option. 

Banks often charge higher fees on international money transfers and can have less favourable exchange rates. If you’re making regular payments these costs can really add up. 

That’s where foreign exchange specialists generally have the upper hand, as they tend to charge lower fees and offer more competitive exchange rates so that your hard earned cash doesn’t get swallowed up as it travels overseas. 

Here are some key things to look out for when considering an international money transfer:

• Exchange rates:  the conversion rates are offered for the currency you need to be using 
• Fees: extra charges that come on top of the transfer amount  
• Transfer limits: how much can you send in a single transfer
• Transfer time: the time it could take for your money to get to where it needs to be, generally between 1 to 5 business days.   
• Transfer options: will you make the transfer online, over the phone or in person 

RELATED ARTICLE: How to send money overseas with minimal transfer fees 

Receiving rent from overseas: What are the different ways to get the money? 

Receiving money from overseas often means it’s out of your control. Knowing the options out there can be a useful strategy, especially when advising your overseas renters on how to make their weekly, fortnightly or monthly payments to you. 

Paypal: Paying via Paypal is secure but comes with a recipient fee. Both parties need Paypal accounts to transfer funds.

Bank account to bank account: International bank transfers typically have costly exchange rates and can incur recipient fees up to $30.

IMT to bank account: Foreign exchange specialists often offer better rates, lower fees, and rate-locking options. Research to find a suitable service, but note that senders must register with your chosen IMT specialist.

RELATED GUIDE: Renting a property overseas

3 things to know before you buy a property overseas 

If you're thinking about investing in an overseas property, here are three essential considerations to understand first:

1. Knowing the market: Understanding the local property market is an important consideration. Research local property prices and the buying process (either independently or through local experts) to ensure you make an informed investment decision.

2. Learn the rules: Familiarise yourself with both overseas and Australian regulations. Report overseas rental income on your Australian tax return as part of your worldwide income, though the ATO may waive requirements if you're already taxed in the property's country. Be aware of local property taxes, insurance requirements, and fund exchange controls, as these vary significantly by location.

3. Stay on top of the exchange rate: Keep an eye on exchange rates when dealing with deposits or rental income in foreign currencies. This affects both your initial investment and ongoing returns in AUD, and helps you prepare for potential currency fluctuations.

Looking to buy an investment property overseas? Check out our International Money Transfer comparison table to weigh up foreign exchange specialists or read our handy guides and tips.