If you have a sizable amount of savings and want to invest in something that is going to have a high ROI, then an overseas property is a fantastic idea. Property in the United States is soaring in price, making it impossible for first-time buyers (and even some investors) to get a foot on the ladder. This isn’t an issue that you will experience when investing in an overseas property, unless you are looking in countries that have high property costs.
This post will explain all of the benefits that you can enjoy when you invest in international property:
Potential Citizenship
Have you ever considered applying for citizenship in another country? Buying real estate overseas is a very effective way of acquiring a second passport. Portugal is a great example of this. The nation runs a visa scheme, whereby foreign investors are able to buy their way into the country. You don’t just have to buy property to get citizenship in Portugal, either. You can invest money into businesses or jobs for local people. Your family can also get citizenship. Other countries run similar initiatives, though none are as efficient as Portugal’s golden visa scheme.
Buying Simplicity
In most foreign countries, the process of buying property is very easy. This is especially true if you are from a Western nation, like the United States or the United Kingdom. Some countries do put barriers in place to prevent foreign investors from buying up all of the property, though there are easy ways around this. Often all that you need to do in order to qualify for property in these places is to make a citizenship application or an investment in a local business, which has already been covered. You can also hire an agent to act on your behalf, which makes the property search process very straightforward.
Property Bargains
It’s very easy to find good deals on international property, especially if you are shopping in countries that aren’t particularly popular with foreign investors. In very large European countries like Spain and Italy, it is also to purchase property in dying villages and towns for as little as a euro. These purchases often come with renovation clauses, however. In order for you to be able to go ahead with a purchase, you have to agree to make the property your full-time home, and you have to renovate it to inhabitable standards. Once you have done that, you can have the deed transferred to you.
Price Increases
Property prices are rising everywhere, not just in Western Europe and North America. It’s just that property prices are rising slower in some countries, and it seems like they aren’t rising at all. Purchasing a property abroad is an extremely effective way of ensuring that your money stays safe and that your investment increases in value. Property is always going to be needed, no matter what happens economically. If you want to make a sensible investment decision, then it’s worth speaking to an accountant or property expert to gauge how much your investment will appreciate in value over the next ten years. Property price rises can often be predicted.
Passive Income
You can use international property to make passive income. You can also use international property to pay for your retirement. Savvy investors have been buying up property in popular tourist destinations for many years now, converting them into Airbnb houses. If you are going to do this, then you will need to pay somebody nearby to maintain the property. While most Airbnb users are very clean, you can’t rely on them to extensively clean the property when they are leaving. You cannot then let new people stay there until a deep clean has taken place.
Stable Investment
Something that has been mentioned throughout this post is that property investments are stable investments. Unlike cryptocurrency and spread betting investments, your property investment won’t disappear in a week or wildly fluctuate in value. It’s very easy to predict changes in the property market if you study it. The same cannot be said for online investments like those just mentioned. If there are any downward trends in property prices in your investment house’s area, then you can either hold or sell before things get worse. Most investors choose to hold because property prices mostly always rise again.
Consistent Demand
There is a consistent demand for property, especially when you consider the fact that the world’s population is supposedly reaching “unsustainable levels.” Many countries where the property is cheap to have emerging economies. This means that while the property is cheap today, that might not be the case in a decade. Working professionals might begin relocating to the area that you have invested in. Tourism could also pick up, meaning that there will be greater demand for holiday homes and temporary rentals.
Holiday Home
One of the main advantages of buying an investment property is that you can use it as a holiday home (unless you are leasing it long-term to people in the area). The ability to escape from one’s country and go on vacation is very desirable. Unfortunately, many people aren’t able to afford a property abroad. If you can, then you should definitely buy one, if only for the ability to get away. We are facing very uncertain economic times in the West, so having somewhere peaceful to escape to is a great idea. Many of the world’s richest and most elite individuals are also buying property abroad for this reason.
New Community
Finally, having property abroad means that you can immerse yourself in a community that you aren’t familiar with or that’s foreign to you. Unless you live in the area that you have invested in, you will need people to look after your house. There are many companies that will do this for you, but if you have purchased a property in an extremely rural area, then you will have to hire locals to do it for you. When (or if) you visit, you will be able to meet locals. You could even lease your house to people in the area that are struggling to find affordable properties.
Buying property abroad is a great way of ensuring that your savings are protected. When buying abroad, try to avoid purchasing in places that have frequent conflicts. Changes in government and coup d’états can result in you losing access to your property temporarily. The best way to check whether or not a country is safe for investment is to use the CDC’s international safety guide.
