While owning property in the UK comes with its fair share of benefits, we feel that buying an international property as part of your investment strategy will be more valuable in the long term, in more ways than one. Here are the reasons we think you should buy property abroad:
It doubles up as a holiday home
It helps pay for itself
As part of your investment strategy, if you do decide to rent out your property (at least 90%) of the time, the property will at very least contribute to the mortgage payments. Don’t forget that during peak tourist seasons in some places, you can fetch higher rental fees, but be sure to keep it competitive. Sites such as Airbnb are great places to post your property during these times.
It could be an excellent option of place to retire to
The golden years are an incredible opportunity to decide where exactly you would like to spend some of your best years. If you already have an exquisite property in the sun (perhaps even by the sea) then you could rent out (or sell) your UK residence as part of your investment property and live in the property you bought abroad in retirement. That way you will still be generating an income during this time, and depending on where you buy it could also mean enjoying a better quality of life!
It helps you to diversify your portfolio
As we said in the beginning, considering a property abroad as part of your investment strategy also leads to a diversified investment portfolio. But more than it just ensuring that your wealth is spread over different investments (with varying levels of risk attached to them) it means that not all of them are placed at the mercy of one country (along with that country’s economy and currency). In essence, it allows you to have a buffer against any unforeseen local events into the future (Brexit being a prime example).
It could help you to attract an international tenant base
If you decide to buy property as part of your investment strategy in a world-class destination that draws in people from around the world, then you get to optimize your rental income. That way, if there are any reasons economically why people from one area of the world wouldn’t be travelling, then you could still generate income from those coming from elsewhere. Think about it: In South Africa and Australia the holidays run from December to February, but most of Europe enjoys their main holidays during July through to September.
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If you are thinking about buying an international property as part of your investment strategy or purely for the purposes of having a holiday home, then you should contact us directly to chat about the benefits of buying in Spain, or to have a look at some of our Grupo Esmeralda apartments in Calpe that are currently for sale.