Buying real estate overseas is a popular investment opportunity and is one that has many benefits. While the pandemic did put the real estate industry on a short pause, we are now slowly seeing a return in property investors overseas.
Related: Hawaii tops list of global property destinations for luxury buyers
If you are considering buying some real estate overseas and need just a little bit more convincing, then keep reading for our five reasons as to why you should go ahead.
Always have somewhere to stay when abroad
If you spend some time abroad in a specific country, then you could consider buying a property in the region to save money on renting. You might have to work there for part of the year, or you might have family in the region. Whatever your reason, if you keep visiting a specific region, buying a property could save you money on hotels. Initially, you can rent a room to scope out the area and work out if you’re going to enjoy spending time there in the long run.
Once you know you’re happy, you can explore the options to purchase a property in your chosen region. Companies such as PropertyGuru offer both rental options and purchasing services in countries such as Malaysia, so you can find the perfect property for you. You can rent it for the short term to see that you like the area, then take the time to find the perfect property that you want to buy to save you money in the long term and give you a unique space in the country you work and spend time in.
Earn an extra income
Another reason to buy real estate overseas is that it is a great investment opportunity and an excellent way to earn an extra income. Once you own the property, take the time to do it up and refurbish it with luxuries you know people will want to pay for. Things like a deep pool, rainfall showers, and outside bars can all increase the value of your property, which means you can charge more for people to stay. When people go on holiday, hotels are not always the first choice, and many people would prefer to stay in a villa or Airbnb type of accommodation.
These are often more private and give people are more stylish and luxurious living space than the standard hotel. Renting your overseas property out can be a continuous stream of income, particularly through the summer months, as you only need a short turnover period between each guest visit. You just need to make sure you have a cleaning crew on standby so they can make sure the property is ready for new guests.
Somewhere to retire too
We all get to a stage in our lives where we need to start thinking about a retirement plan and where we want to be after we finally stop working. It is very important to have a retirement plan in place, so when we do retire, there is less stress and things to deal with. Owning real estate overseas could make your retirement plan a little easier as it provides you with a great place to escape to. Owning your own place in the sun opens up so many opportunities for you and can provide you with a happier and more stress-free retirement.
While some people may choose to sell their home and move into their overseas property permanently, that is not your only option out there. If you have a lot of attachments to your family home, you could always just split your time between both properties instead, so you aren’t missing out. In the periods where you are living abroad, your family back at home could look after your house so you know it is in good hands.
Diversify your property portfolio
If you are an investor who is interested in diversifying your property portfolio, then buying real estate overseas could be the perfect opportunity for you. Being a successful investor, especially in real estate, is all about diversifying your portfolio so that you don’t have all your eggs in one basket.
The real estate market is volatile, and there is always the risk of one project falling through. If this does happen, having a diverse portfolio will help you balance your losses as you have other investments in different areas. If you are unsure how to diversify your portfolio, this article gives an informative breakdown.
Get to experience a different culture
The final reason you should buy real estate overseas is that it allows you to experience a different culture more deeply. Having your own property means you can visit and stay in the country for as long as you like, which gives you a longer period to embrace the country’s culture. Additionally, staying for a longer period will make it easier for you to make friends and learn the local language, which is always a good thing when being in a country that is not your own.
I am a 50-something Torontonian who loves everything about my city. It’s been my home, my playground, for my entire life. I went to school here. I met my wife here. I own real estate here. I love writing about the transformation of my city on the world stage, which hasn’t been anything short of dramatic. That continues on, as I write this. I write on the real estate scene. I write on travel and fashion. I like following the world of luxury watches.
But I love writing about cars – check that, luxury cars, a level of superior, engineering sophistication, high performance and style, that transports you not just from one destination to another but also out of whatever you are going through on a particular day, whatever mood you are in, all to another head space. It’s complete and total exhilaration, head to toe.
Check out my stories, and email me direct at mkeast@regardingluxury.com
