Great Destinations for International Real Estate Investing

Great Destinations for International Real Estate Investing

When it comes to real estate investments, there is one thing that is certain: the time is now for savvy investors to hedge their bets on the real estate market, not just in their home country, but all over the world as well. There are excellent opportunities for beachfront property in many different surprising worldwide locations. Consider the following options:

Algarve, Portugal

The best thing about Algarve, Portugal would have to be that there are no foreign ownership restrictions. When coupled with the stunning cliffs and beautiful beaches, a person definitely has a paradise that even 70’s Yacht Rock artist Bertie Higgins could get behind. The property options are also very diverse, with $8 million buying an oceanfront home and $215,000 getting a home if a person wants to sacrifice that beach view.

Ambergris Caye, Belize

This property in Belize is very underrated. Of course, there aren’t too many properties that could absolutely be considered beachfront. However, it has a tropical landscape, mild weather, and numerous recreational opportunities. The prices won’t break the bank either, with a two-bedroom condo only costing around $250,000 and a one-bedroom option going for $150,000.

Cayo, Belize

Lush jungles. Mountainous terrain. These are just two ways to describe Cayo, Belize. There are plenty of housing options for retirees that start at just $130,000. Moreover, there are plenty of condos available in the area for $100,000 or less. American retirees will love the area simply because for the most part, it has all of the comforts of home.

Granada, Nicaragua

Granada was founded in 1524 by Spanish conquistador Francisco Fernandez de Cordoba, Granada is a historic old colonial city in coastal Nicaragua. When someone couples the warm weather and picturesque lake with a rich history, they are sure to find an extremely desirable place. Historic homes dot the landscape, and most of them have been turned into condos. Prices are fairly reasonable. For example, buyers will find condo conversions available for around $170,000, and a completely renovated colonial home can be had for between $100,000 to $400,000.

Puerto Vallarta, Mexico

There is no question that a lot of prime real estate can be found in Mexico. Puerto Vallarta is a great option, but it truly is better to buy than to rent. Simply put, renting property in Puerto Vallarta is very expensive. However, buyers will find price options for this Pacific Ocean retreat that are well within their budget as long as they are willing to rent them out themselves for the time they are not there.

Honorable Mentions

Panama City, Panama; Samana Peninsula, Dominican Republic; Abruzzo, Italy; Medellin, Colombia; and Istanbul, Turkey are all good options for property investors as well for a variety of different reasons. All someone has to do is their research and they are sure to find some excellent overseas property investment options!

3 Advantages of Investing in International Real Estate Markets

3 Advantages of Investing in International Real Estate Markets

The optimum goal of any investor is to accumulate enormous wealth before retirement. Real estate is among the lucrative sectors investors are eyeing. Passive income is quite alluring, but real estate can’t be considered to be one. To build a prominent real estate sector, hard work, determination, and patience are needed. When it comes to international real estate, investors need to be wary of the risk involved. However, if an investor undertakes extensive research, investing in foreign real estate can be quite rewarding.

Why Consider International Real Estate Investment?

To Stretch Your Real Estate Networks and Dexterity

Investing internationally does not only earn investors high returns but also helps them to expand their network and gain more experience. By broadening their horizons, they grasp more knowledge and learn a thing or two about international markets. It allows them to have a look at real estate from a different angle. In case there is an expected boom in the local market, such investors can always diversify to international markets. International exposure makes them more confident, enabling them to tap any opportunity, be it locally or internationally.

Globalization

Technology has revolutionized the way people communicate, conduct business, and live their lives. It has made it easier for the human race to share ideas and access markets in a click of a button. Tech-savvy investors acquire knowledge, information, and stay connected with investors from overseas. Leveraging on technology, you can identify a profitable market without spending a dime. Sage investors utilize technology to reap higher returns beyond their wildest dreams.

Exceptional Diversification

Experienced investors spread their investments to minimize risks. Local investors are likely to lose all their money in case the unexpected happens. The real estate sector is far from stable, and a small change in the economy can lead to drastic effects. Investing overseas is a credible way of diversifying a portfolio with a global edge. It allows investors to spread their risks all over the world.

Mitigate Risks and Gain Enormous Wealth

As said earlier, spreading investment around the world creates room for exceptional financial rewards. International markets allow real estate investors to make a kill from both floundering and expanding markets. Markets do not move in one direction, therefore, if one market is experiencing challenges, an investor can take advantage of a flourishing market. In addition, investors are likely to enjoy more tax advantages by investing intentionally.

Tips for Investing in International Real Estate

Tips for Investing in International Real Estate

Investing in international real estate requires more planning and understanding than investing in real estate domestically. Anyone considering adding international properties to their investment portfolio should keep these six tips in mind.

Understand Financing and Funding Sources

Getting the proper funding in place comes with a few challenges when dealing with foreign areas. International laws need to be learned and followed. Financing must be secured in local currency. It’s typically challenging to obtain a mortgage as a foreign investor. A person looking to invest internationally should consult with a local professional.

Think Through Tax Liabilities

Each country has its own unique tax laws. Some countries require an investor to pay inheritance tax, stamp duty, or title transfer tax at the point of purchase. Others require the payment of land tax. All of these factors must be considered. U.S. investors need to understand IRS tax deductions when investing internationally.

Confirm Title and Ownership

Proceed with caution when dealing with title and ownership issues. This is especially necessary when it comes to debts on the property. For example, a developer may not have repaid borrowed money. The new owner might be made liable for this debt after the completion of the sale.

Is it Legal to Invest in the Desired Location?

Some countries don’t allow non-citizens to invest in real estate. Other countries regulate where foreign investors may buy properties or restrict the type of property that can be purchased. The best way for any international investor to learn the legal specifics is to hire a local accountant and attorney.

Consider Liquidity Needs

For the most part, foreign investments are non-liquid assets. This must be considered so that the investor doesn’t lock up cash that may be needed in the short term.

Consider Who Will Manage the Property

An international investor must hire someone to manage the property. There needs to be a system in place to handle contractors, repairs, or even language barriers. Security is required to protect against trespassers or burglars. A management company should be hired to maintain an international investment property.

Investing in international real estate can be lucrative if done correctly. Investors should follow these tips and also build a local team to become successful.