By Mohamad Itani, CSMO at United Real Estate (URC) – Prior to this, he was CEO of Esrar Real Estate, a specialist real estate sales and marketing consultancy working in Saudi Arabia (KSA) and the region. Considered a seasoned real estate professional and consultant, his services extend to several countries including Malaysia, Indonesia, Maldives, Turkey and Spain.
“Should I buy a property outside my country? Is it rewarding to invest in international real estate? “.
At some point, everyone asks themselves this question.
In this article, I will list the main reasons behind international property investment.
Extension out of bounds
The objective of an attractive real estate contribution is to broaden your risk through various investments. Overall, you should never put your assets in the same place. The real estate market is far from static and financial circumstances influence the real estate market intensely, whether negative or positive. Putting resources into international real estate is a great method to grow your portfolio with a global edge. You spread your investment risk across the globe by investing resources in foreign real estate markets. International real estate markets are moving in various or even opposite directions allowing foreign markets to offer a greater chance of rapid development and more fantastic abundance.
Availability & globalization
Innovation is changing the way we communicate, lead our lives and conduct our business. It makes things open, simpler and faster. With the help of innovation and globalization, we are becoming more educated. We can access a wide range of data, secure information and stay connected in a faster and more viable way, making international real estate accessible to everyone. You can search and research interesting and unknown markets to invest resources in an instant without investing much.
A second income
Buying a property for investment will always provide you with a stable second income. Therefore, investing in countries with low tax rates or growing economies will increase your chances of earning a higher income than your own country in most cases. Strong and emerging economies represent a great opportunity to seek investments there depending on the political stability of these countries
To fall in love
With the city. Many people buy real estate because they fall in love with the city they visit and decide on long stays in certain seasons. So, buying a property can be cheaper than staying in a hotel, and renting the space while the person is away will ensure a stable income.
Which are the best countries to buy properties in?
USA, China, Dubai, Spain, Germany, UK and Turkey have always been hotspots for many years but I expect new destinations on the rise like Greece , Georgia, Cyprus and Italy. Not enough? Take a good look at Croatia, Hungary, Holland, Belgium and France. A good project can be found anywhere.
Despite what is happening in Europe, the best time to buy real estate is still NOW.
Distinguish your goals before investing in international real estate
There is a wide range of real estate, and it’s essential to consider your goals – both present and long-term – while settling on a conclusion on the type of property you should bring.
For example, would you like to invest resources in a private property that you can use as a country estate and as a source of rent payment when you are away? Alternatively, on the other hand, would you like to put resources into commercial real estate that will be leased? Or are you going to invest in a development by buying off plan to start seeing the benefits immediately?
A Forbes article insists that you need to have explicit goals when choosing to invest resources in real estate. The answers to some of the above questions may help you get started.
- Significantly, in the space where you should buy?
- Is it a rapidly changing industry or an economically tight market?
- Can you make money in case you choose to sell soon?
- What is the financial horizon of the area where you are considering a real estate investment?
So what do you really want in a property?
When you recognize your broad goals and the region where you need to invest in international real estate, your next step should be to choose the type of property you need and its particularities. For example, you might ask yourself; How important or how big is the maintenance of the property?
Assuming you were thinking about a private real estate investment, would you say you would invest resources in a property that will expect you to rent it out? What is your optimal spending plan and what is the extreme amount you will pay?
Also, while thinking about your financial plan, don’t forget tax collection. Each nation has special regulations on land charges.
If you are considering buying a property overseas in the near future, I always suggest hiring a qualified consultant for this. Paying brokerage fees for continued peace of mind is well worth it.