Real estate has had its ups and downs, but it is still widely regarded by financial experts as one of the most stable and profitable investment vehicles around. If you are thinking of purchasing property as an investment, you may want to consider doing it abroad. Why? Here are 10 great reasons!
1. You can diversify your investments and earn foreign income.
One great thing about a foreign investment is that it is part of a foreign economy and typically denominated in a foreign currency. That means if things go south with the real estate market in the US (or with the US dollar itself), you may still be doing all right, so long as you chose a country where the real estate market is booming and the currency is strong. Having lived through the recent economic recession, you can see why this would be reassuring.
2. You can purchase real estate at incredibly low rates depending on where you are interested in living.
Consider countries like Mexico where the currency is pesos and the cost of living is low. The cost of housing is low too, so you may be able to afford real estate which would be outside of your reach in the USA. If you cannot afford a small house here, you may be able to buy one there. If you can get a small abode here, you might be able to get a substantially larger one there. If you can find a country where the costs are steadily rising, but are more affordable than they are here, you will be in great shape.
3. If you are trying to find a way to move to another country (full-time or part-time), owning property in that country is a great way to do it.
Oftentimes, just owning the real estate will entitle you to a residency visa, which means you will have a home away from home, and you can stay in the country for extended time periods. If you choose, someday it may even be your principle residence. In fact, buying real estate is often a shortcut to earning citizenship. Moreover, some countries will also grant you additional passports and travel rights.
4. You can own property somewhere exotic.
In fact, the property itself might even be exotic! Why purchase a home in the suburbs when you can buy a home on the beach? Plus, in many countries you can find reasonably priced unique properties like old windmills, churches, and even castles. Many of these types of unusual properties would never be affordable in the US, if even available. Properties like these make great rentals as well if you are thinking about allowing vacationers to stay in your foreign real estate while you are away.
5. You can deduct taxes for travel.
Visiting your property to manage it is a business expense. As a result, you can generally deduct it. That’s a great way to reduce the cost of world travel. If you dream of becoming a globetrotter, but you want to save money doing it, this is the way to go!
6. Foreign property is a hard asset, just like property in the US.
For many people, this is not only a secure financial decision, but also a choice that provides peace of mind. Even if the value of paper currency is watered down through inflation, your property is likely to maintain some inherent value. Real estate also isn’t usually subject to the same ups and downs that the stock market is. It’s more predictable.
7. As mentioned previously, even if the real estate market in America isn’t doing too well, you can find hot opportunities in foreign countries.
Right now, for example, Singapore represents a prime opportunity. It’s a slow market at the moment, but it’s a vibrant one, and this is a great time to get in on it. Singapore’s high cost of living means most buyers need to go through agents and pay a commission to find low-cost property, but online classified sites offer investors a chance to spot prime opportunities without paying a hefty fee.
8. There are lots of turn-key options.
Investing in foreign real estate can be very complicated, but it is becoming much simpler than it ever used to be in the past. You will even find websites now that make it as easy as buying a stock. It’s something you can set up surprisingly quickly. And if you don’t have the money to buy an entire property, these days you can even buy a stake in a larger property along with others.
9. It’s become much easier to manage real estate overseas.
Managing foreign real estate used to involve a lot of physical travel and expensive phone calls. Nowadays you can take care of a lot of managerial activities online. Phone calls are less expensive (since you can use voice chat online), and you do not need to travel as often since you can do so much remotely.
10. You can use your real estate for additional streams of revenue.
You don’t have to leave your foreign real estate just sitting there collecting dust when you are not using it yourself. In fact, doing so would be a waste of space. Consider using your new land for agriculture. In countries with lower wages, you could probably staff the fields and pay your workers and still turn a nice profit. Another idea would be to register your property on a site like AirBnB.com. You can rent it out as a unique accommodation to travelers overseas and make a nice profit.
Investing in overseas real estate may sound intimidating if you have never purchased property abroad before, but it can pay off in so many ways. It’s a wonderful way to diversify your asset portfolio, save money on travel, and get a foot in the door if you’re thinking of moving overseas. It’s easier now than ever to buy real estate and maintain it, so go for it!