5 ways to benefit from buying property overseas

Buying property overseas is considered as a long-term planned investment. If buying property overseas is done in a well-planned manner after research, it can result in substantially more benefits than investing in the local real estate. However, buying real estate abroad can involve complex processes. Also, the legal rights and obligations related to buying a property overseas play a vital role. So, it should be done under the able guidance and support from experts in this niche.

1. Portfolio diversification

Every economy undergoes business cycles. But, even at times of global economic crisis or slowdown in the US, other economies make keep growing steadily. If you invest only in your home market, you put all the eggs in one basket. Buying property overseas provides you with a diverse portfolio. The losses suffered in the US markets may be compensated by the gains made by investing in property overseas.

2. Retire abroad

By buying property overseas, you can think of retiring abroad. The developing countries have a super low cost of living as compared to the nations of the western hemisphere. The property rates are also much lower. Therefore, buying property overseas provides you a chance to enjoy a luxurious life in the old age with the pension. You can have the beach house that you dream about by buying property overseas. It can be attained at far lower prices in Latvia, India, Brazil and other such countries, and fit in your budget.

3. Benefit from the financial crisis

The US property buyers took the advantage of the financial crisis in European countries and bought property overseas. The Iberian Peninsula, Italy and coastal France have emerged as popular destinations. The US buyers rode on the double advantage of falling property prices and a change in exchange rates. In the starting months of 2018, 1 US dollar cost around 0.79 Euro. By the middle of the year, 1 US dollar has become equivalent to about 0.87 Euro. The amount required to buy the same property in US Dollars has decreased due to the change in the exchange rate over a short span of time. Therefore, it becomes important to utilize favorable currency exchange rates while buying property overseas.

4. Earn income abroad by buying property overseas

Buying property overseas provides an excellent chance to earn rental income from abroad. The occupancy rates are high in densely populated cities in the developing countries. Acquiring properties at such places provide a steady cash flow to the investor. The cash flow is independent of the US economic conditions. The cost of buying property overseas at these locations is low while the total income generated by the property after deducting the maintenance costs can be higher in the percentage of investment than those of the US real estate investments.

5. Licensing

Licensing is the safest way of making money on an overseas property. It may not involve buying property overseas. But it is an important aspect of the international nature of real estate. The US President, Donald Trump, made millions in India by doing brand-licensing agreements with the local developers. Trump Organization didn’t invest a single penny in buying property overseas in India or making equity investments in Indian real estate. It merely cashed the brand value of the Trump Organization. The Trump Towers in Mumbai and Pune have achieved substantial price premiums of around 33% to 60% over the neighboring projects.
If you are interested in buying property overseas, please have a good research on the foreign ownership laws, tax liabilities, financing, etc., to ensure that you go with the right deal.