Many of us dream of owning a little getaway somewhere exotic and sunny, either serving as a permanent home or a secondary vacation property. There are many different reasons why you may be tempted to purchase real estate in a foreign land. Real estate prices may be lower, giving you more for your money than you would get at home. Or you may be seeking a holiday home to escape to each summer with your family, creating warm memories to last a lifetime. Foreign properties can be rented out in your absence, providing a secondary source of income. It’s worth taking a closer look at these potential reasons to buy property overseas, to see if that dream could be turned into a reality.
1. Low Prices
Housing markets differ between countries, so while a beach house in Miami or a London flat could be prohibitively expensive, houses for sale Perth might seem like a steal in comparison. Locations in Southeast Asia and Latin America are picking up steam from foreign investors, due to beachfront properties at relatively low prices. Other popular locations include Spain, Poland, and Australia. Australia’s housing market has remained stable while others have fluctuated, making this a less risky destination to get more for your money. It’s important to watch both housing and currency prices to find the best deal, along with the cost of living in your chosen destination. In many countries all three will be lower than at home, making it possible to retire in greater comfort or live a higher quality of life abroad.
2. High Potential Returns
Another reason to purchase real estate abroad is for its investment potential. As prices appreciate in many countries, you can buy low and sell high in a few years. There’s no guarantee that prices will continue to grow in an area exhibiting current growth, but if you do your research and choose an area with long-term growth potential, you may reap a significant reward. Investors can also rent out their property from abroad, using a local management company. Real estate can be leased on a long-term basis or as a holiday let to visitors.
3. Holiday or Retirement Potential
If you’re thinking about buying a second home to serve as a vacation or retirement property, you might want to look at overseas locations. You can often get more for your money, and benefit from new and exciting tourist attractions to explore compare to those at home. You’ll want to spend plenty of time in the location you’re thinking about, throughout all seasons to see if it’s really somewhere you could imagine yourself visiting regularly or even living in on a permanent basis.
Tips to Keep in Mind
Like any investment, there is some aspect of risk when purchasing overseas property. You’ll need to research each country’s laws of ownership carefully, enlisting a legal advisor to help you complete paperwork. Bear in mind that if you rent your property, you must declare any foreign rental income on your taxes at home. To maximise your profits, you’ll want to choose a location with long-term potential that will be attractive both to buyers and renters. Property in close proximity to urban areas or in resort communities will always be in high demand. By taking the time to research your options, you may find that buying real estate abroad can be more than a pipe dream.