The thought of making an international property investment can be overwhelming, but with good knowledge of the foreign property market, you can minimise investment risks and maximise profits for years to come.
To buy well, you need to know the pros and cons associated with a bricks-and-mortar investment, what types of properties are on offer, the legal and tax implications, as well as location and lifestyle particulars. Before getting into these nitty-gritty details, we’d love to tell you why international property investment is a smart move to begin with.
It Generates a Positive Cash Flow
Your tenants start helping to pay off your mortgage and other expenses the moment you rent your property out. Once this is paid off, you can use this positive cash flow to fund your lifestyle or invest in another property to grow your investment portfolio.
If you own real estate abroad, you’ll also earn rental income in another currency and not all your money will be dependent on the fate of the British Pound. Buying smartly means you can make the most of depreciating currencies. If your UK properties are suffering, your property abroad can carry you through a sales drought.
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It’s a stable investment
Property investments are less volatile than the stock market. In the UK, rising property prices have prevented people from buying and created a rapidly growing rental market. Housing is a basic human need and the rental demand is high. As such, there’s a good chance you’ll be inundated with lease applications.
Real estate is a hard asset, meaning it retains value independent of any paper currency’s nominal value. While stock values can be wiped out, a property's value will never drop to zero.
It can be leveraged
With an international property investment, you can buy more with less. For example, if you invest £50,000 into a £200,000 house and the price doubles, your property is worth £400,000 and you have made £200,000 after paying the mortgage. This helps you maximise return on your investment when you experience growth, and gives you more money to grow your financial portfolio.
It’s a second home
International property investments are a great way to enjoy a different lifestyle and culture while watching your investment grow. If you’re not renting on a permanent basis, then your property doubles up as a cheap holiday destination for your family or can be used at a later stage as the perfect retirement home.
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It helps acquire residency
As an EU resident, you don’t have to worry about movement or buying property in Europe. However, if you’re travelling to other continents, you might need a visa. In many countries, a real estate property qualifies you for a residency visa.
It has multiple uses
Expand your horizons beyond houses and apartments. Have you ever thought about investing in agricultural land or forestry? The world’s population is increasing and so is the demand for produce. In decades to come, you could have a booming agricultural business. Alternatively, you can purchase residential property that can be repurposed for commercial use or new developments at a later stage. Imagine turning a vacant plot of land into a large apartment block and reaping the rental profits?
With all these benefits, it’s clear that an international property investment is a lucrative financial decision for you and your family. To make a solid investment, you need expert knowledge on legal requirements and prime locations. If you’re already convinced, then take a look at our family-friendly apartments in Calpe.