Why should you buy property abroad?

Buying real estate abroad is a popular area for investment.
Getting another passport
Profitable investment
Capital protection
Moving for a long or permanent stay
Saving on vacation
Tips for buying property abroad
Live in the country where you plan to buy real estate
What you need to pay attention to:

Buying real estate abroad is a popular area for investment. Rates on bank deposits are insignificant, and with proper investment in foreign real estate, you can earn 3% or more in foreign currency just from price increases per year, and real estate can also generate profit from rental.

Let's look at the main reasons for buying property abroad.

Getting another passport

Citizenship of a European country increases mobility within Europe, even with closed borders. Therefore, in 2020, the following destinations became especially popular among Russians: Greece, Portugal, Spain.

Profitable investment

Buying housing in foreign capitals is a profitable investment. Even during the pandemic and coronavirus, real estate in large European cities not only did not fall in price, but even increased by 3-5% or more. Particularly interesting from the point of view of investment in real estate are Cyprus, Dubai, and Thailand.

Capital protection

Investments in real estate are the least risky area for investing capital. Even the pandemic did not have such a strong impact on the real estate market, especially in developed countries. Therefore, investors consider purchasing real estate abroad as an option to protect their funds from inflation and political crises that could negatively affect their financial situation.

Moving for a long or permanent stay

Better living conditions, a quality education and healthcare system, and great job prospects also encourage many to buy houses and apartments abroad.

Saving on vacation

Purchasing foreign real estate in resort areas removes the costs associated with renting housing during vacation. And in other periods, you can successfully rent out the property.

Tips for buying property abroad

Buying property abroad for the first time is a difficult step that many are afraid to take due to the unknown consequences. The following tips from leading experts will help reduce the negative risks that arise during real estate transactions.

Live in the country where you plan to buy real estate

Before investing in the purchase of housing, commercial properties, or land abroad, realtors recommend living in another country for some time. Of course, as they say, one should not confuse “tourism with emigration”. But this will provide an opportunity to study a little the life and laws of a foreign country in order to better understand the potential of the local real estate market.

What you need to pay attention to:

international agreements for the avoidance of double taxation;

  • whether the country exchanges financial information;
  • Is it difficult for a foreigner to open an account in a local bank?
  • how best to structure a transaction: own real estate through a legal entity or directly;
  • study the local market for the presence of objects attractive to local and foreign citizens: a large number of educational institutions, a business center where there are offices of international companies, historical sites that attract crowds of tourists.

Risk analysis

Before buying an apartment or house abroad, realistically assess your capabilities. After all, buying real estate is only half the battle; you shouldn’t forget about additional expenses:

  • communal payments;
  • payment for services of management companies;
  • availability of real estate tax;
  • repair costs.

These costs may make it unprofitable to purchase property abroad. Therefore, in some countries it is more rational and profitable to rent objects than to buy them.

29 January 2024, 11:46 | Views: 797

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