If you are looking to diversify your investment portfolio, you may have decided to turn your attention to buying property.
The buying market is tough at the moment in the UK and the US, so it can be tricky to turn a profit in these areas, even for the savviest investors. However, there is another option that you may not have considered - buying a property abroad.
Of course, investing in property overseas is going to require ongoing management and maintenance, which may make the prospect off-putting for many people who want to turn a profit. But there are some real-world advantages of investing in property overseas, which will be discussed here. So, enjoy!
Property can be a good investment, and buying in a foreign market can diversify an investment portfolio.
One thing to consider is that if you invest in property in the US, if the property market crashes, all of your properties will lose value, causing you to lose money. But, by investing abroad, you have a unique opportunity to benefit from a foreign market, which could turn a substantial profit, especially if you are looking for Property for Sale in Dubai, which is a lucrative area of the housing market at the moment.
Buying a property abroad can provide a vacation home that can be used for personal use or can be rented out when not in use. And who doesn’t want to have a vacation home to escape to in the summer?
Indeed, depending on where you buy your overseas home, you may even be able to list it on a site like Air BnB, which can allow you to once again up the income during the tourist season if you are not able to spend time in it yourself. You can always check the Airbnb Calculator and see the full income-generating potential of your short-term rental property.
If the foreign market grows and develops, the property may appreciate over time. As mentioned before, the property market in places like Dubai (due to its tourism) is jumping in value, so it may well be worth looking into investing abroad.
It is also worth considering other areas, such as retirement, where many people are looking to save money. While the home you buy now appreciates in value, come the age of retirement, you can live in it for less than you would be able to in the US, making it a wise investment in your future.
Some countries offer lower tax rates for foreign property owners or have specific regulations that may help foreign property owners save money on taxes. It can also help you to accumulate wealth, free from the hassle of taxes at home, so you will have more money in your pocket!
Moving away from money for a moment, owning a property in a foreign country allows you to experience different cultures and lifestyles in a more immersive way.
As stated before, if you intend to use the home abroad as a holiday home or as a place to stay when you work abroad, it can even help with foreign residency.