Are you looking for opportunities to invest in real estate abroad, but you do not have sufficient knowledge on the subject?
Together, we will see the most important features of international real estate investment, and learn about the basic information that will serve us in the search for the best investment …
What is the concept of international real estate investment?
This concept can be explained simply as the purchase of real estate as a piece of land, buildings, infrastructure and the like of property, on an international scale (i.e. located in countries other than your country of origin) for the purpose of generating material income.
This concept is considered relatively new, which started in the eighties, and is in line with globalization today.
What are the benefits of international real estate investing?
Global diversification in investing = less risk and more profit!
Economists repeat to our ears the famous sentence “Do not put all eggs in one basket”, and this is exactly what you benefit from when you invest in real estate in foreign markets, it is known that the real estate market is far from stable and affected by economic conditions, and when you seek to diversify your investment portfolio with real estate International, this means that you face these risks by taking advantage of the movement of international real estate markets with different or sometimes opposite directions, which provides you with greater opportunities for achieving and growing profit.
Greater opportunities with technology
The globe, now via the internet, has turned into a small village. Today, you can access any information you want in a matter of minutes while you are sitting in your home. Do you realize the meaning of using that to increase your investments ?!
Technology has now provided rapid access to international real estate markets, as you can view the types of real estate, their location, price, legal status and other information with the click of a button, and therefore whoever uses technology to his advantage as a real estate investor will reap financial rewards beyond his dreams.
A network of international relations and new experiences
As the real estate investment department expands, the investment relations and experience increase, for sure.
When international real estate investment, you find yourself studying various foreign market conditions, which each have advantages and disadvantages, so that with time you will be able to determine which of them is best for investment, and profits increase accordingly, in addition to expanding the network of real estate knowledge, which of course helps to understand the details more (having someone you know Within the country in which you invest is definitely a big gain), and as a result this leads to gaining more confidence when and where to invest globally without limiting your investment opportunities anywhere.
Take advantage of lower taxes and costs
When you invest in real estate in a country with a low standard of living, you automatically make a profit, and also when you invest in countries with low tax rates, you can increase your investment more than if you invested the same amounts locally.
Selectivity in choosing real estate, which means a higher profit rate
You can carefully select the properties you want according to three elements (location – price – market), which means your opportunity to invest in untapped markets after they become higher, and you can achieve greater returns when you choose these properties and launch their market.
What are the negatives of international real estate investing?
Remote administration
There is a difficulty in managing your real estate in another country, you are obligated to review its conditions and manage it via the internet, and you may have to travel from time to time to review its status, so it may be better to hire someone in the investment country to help you, and to develop an effective plan to manage your remote properties.
Insufficient familiarity with the target investment country and culture
One of the biggest mistakes that you are likely to make is that you are not familiar with the market in which you invest, you must study it carefully in order to achieve the largest amount of profits, and this study includes attention to the local environment with its customs, traditions, nature, and the seasons in which the market moves (for example, some countries are active in rents during a period. A certain year of the year, or it has a low income level that makes people unable to buy, or its currency is weak, which enables you to buy real estate at cheap prices, and so on …).
Risks in foreign markets
Some countries are going through a period of social and economic instability, which makes the risks of investing in them greater. Therefore, the investment portfolio must be diversified so as to guard against any negative change in any market that may lead to all of your invested money.
How can you invest in real estate internationally?
International real estate investment is a profitable long-term project, but investors make mistakes as a result of not sufficiently studying the points that affect foreign investment such as the environment, culture, market conditions and currencies, and here are the most important rules for investment experts that must be followed when investing real estate abroad:
Familiarize yourself with the culture of the investment country
It is not a good idea to invest in a particular country without understanding anything about the geography, culture and customs in that country, so experts recommend spending some time in the area in which they want to buy to learn what drives local life and study the profitability of investing in it in the long term by seeing the possibilities of development and improvement in it. In the future.
Follow the laws
You must understand the legal guidelines in the area in which you want to invest, the property rules and conditions, and whether there are restrictions on the type or location of the property you buy, and if you need permission to buy real estate located on a specific area, in addition to knowing the terms of real estate insurance.
Buy the stakes smartly
Start investing in small amounts. Even if you make mistakes the results are not dramatic. Making a smaller investment is a good way to test the situation.
If the initial investment was successful, making a bigger investment is the next step, so remember to keep asset allocation in perspective to avoid losing big when making mistakes.
Beware narrow vision!
We mentioned before the importance of diversification when making international real estate investment, so focusing on one country or region limits your vision of the real estate cycle.
Avoid unnecessary risks, especially from unforeseen natural or political conditions, and investing in multiple geographies rather than focusing on one country can help mitigate bumps in real estate and global economic cycles.
Team up
Buying real estate abroad to invest in is a complex process and experts agree that it is better not to do it alone, you need to get guidance from a credible, well-reviewed local real estate professional who has done business in the area that interests you, and it is also beneficial to hire contractors and foreclosure experts. Real estate and property managers are familiar with the area in which the property is located.
See also:
How do you choose the best real estate marketer for you?What are the best countries for (international real estate investment)?
What are the best countries for (international real estate investment)?
UAE
A country with reasonable taxes, and no income tax laws in it, which means that investors are exempt from paying taxes on accumulated rent. The rental yield of 5.19% is among the highest, which means that you can get it is a safe bet for investors looking for opportunities in the European real estate market, a great power with a booming economy and great financial capacity, and the low cost of living and income tax rate makes it an ideal choice for real estate investment.
Indonesia
A country with a strong rental movement, and rental yields of 8.61% with an average cost of $ 1,200 per square meter in the city center.
Morocco, West, sunset
The country offers affordable real estate options and a high standard of living.
With a good banking system, foreign investors can be confident that their interests are protected. The tax system is friendly towards foreigners who are not subject to double taxation, and the rental income tax in Morocco is 10.7%, making the rental yield around 5.52%.
Get the most out of your investment.
Germany
Thus, we see that despite the difficulties of international real estate investment and the many challenges associated with it, especially after the spread of the Corona epidemic and the constant change of oil prices, it remains one of the very profitable and worthy investment methods.
References
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