The Main Benefits of Investing in Foreign Real Estate
As the global economy continues to expand, more and more people are looking for ways to diversify their investments. One way that you can do this is by investing in foreign real estate. This blog post will explore the benefits of investing in foreign real estate and why it’s a good idea right now.
Tax Benefits
Many tax benefits come with investing in foreign real estate, including the ability to deduct mortgage interest and property taxes. If you’re looking to reduce your taxable income and lower the amount of taxes that you owe, investing in foreign real estate can help. As a foreign investor, one of your most viable options is to take a look into the Portugal Golden Visa program.
If you are keen on conducting any investment activities in the Portugal territory, then this program will prove to be beneficial because the country doesn’t charge tax on worldwide income. There are also different tax benefits depending on where you live. For example, Australia doesn’t have a capital gains tax or any form of death duties, which makes it an attractive place for Americans to invest in as well.
Capital Gains and Appreciation
Another reason why investing in foreign real estate is a good idea right now is because of the capital gains and appreciation that you will see on your investment over time. One example is to look at Toronto, which saw its average price per square foot increase by 11% between May 2015-16.
This means that if you had purchased a Toronto condo for $500,000 in May 2015 and sold it for $550,000 by the next year, your capital gain would be roughly $50,000. This is why many investors are choosing to purchase property outside of their country. If you look at Portugal right now as well as other European countries such as Spain, you’ll notice a lot of capital appreciation.
Safety and Security of Investment
Another benefit to investing in foreign real estate is that the safety and security of your investment increase as well. When you invest abroad, there are many options available for those who want to diversify their portfolios with investments from other countries.
This can be done through buying property in foreign countries or by investing in funds that invest in different areas around the world. By doing this, you will be able to protect yourself and your family from any potential economic downturns and other financial hardships that may come up over time.
Liquidity and Flexibility
Investing abroad can also provide liquidity and flexibility when it comes to your investment. When you invest in foreign real estate, the first thing that you will notice is how much more liquid these investments are compared to domestic ones. This means that if there’s ever an emergency or unforeseen event and you need money quickly, then selling off some of your property abroad can give you quick liquidity for whatever you need.
This is especially useful when it comes to being able to move quickly in case you have a job opportunity or other reason that requires moving across the country or even around the world.
You can also be more flexible with your location choices and still get great returns on investments when you invest in foreign real estate. For example, if you wanted to look for a high-end apartment that was located on the beachfront or had other valuable amenities that would further increase its value, then these types of properties are usually found abroad. You just have to make sure that you are looking in the right locations and countries.
Affordability of Investment and Cash Flow
Not only is investing abroad becoming more popular, but it’s also an affordable option when compared to buying properties domestically. If you compare certain real estate markets around the world, then what may seem like a luxury apartment for $500,000 here in the U.S., may only cost $200,000 abroad depending on where you look to purchase it.
This is another reason why many people are starting to invest more of their money outside of their country’s borders since there are so many options available that have a great return rate over time as well as are very affordable compared to other opportunities.
Low-Risk Investment
Foreign investment can be a good alternative for people who are looking for low-risk investments. There are many different types of investments that come with low-risk, and foreign real estate is one of them.
One reason for this is because when you invest in a country such as Canada or Australia, both countries have strong economies which mean less risk compared to investing somewhere like Greece where the economy has been struggling over recent years. It’s important to remember that the economy is constantly fluctuating, so it’s always good to invest in low-risk options.
It’s an International Market
The international market has been growing rapidly over the last few decades, making it an excellent time to invest in foreign real estate before prices rise even more. There are many different countries that you can invest in such as Canada, Australia, and Spain.
All of these markets have been growing over recent years with the potential to grow even more into the future which is why it’s a great option for those who want to diversify their investment portfolios and make things easier when investing abroad.
Easy To Do
Investing in foreign properties doesn’t have to take up all of your time, and can be done as a hobby or side business if you’re interested in passive income and want something different than stocks or bonds. It’s as easy as finding a local real estate agent that you can trust to help guide you through the process, and then simply choosing from the different types of properties that are available.
You don’t have to be an expert or know much about real estate either. This is one reason why it makes for such a good investment option since anyone can get started right away.
In conclusion, investing in foreign real estate is a good way to diversify your portfolio and get better returns on your money. It’s an excellent low-risk investment that also comes with many tax benefits. You can do it as a hobby or invest professionally, either way, there will always be experts there to help you find the best property for you.
