Top Reasons to Buy Real Estate Overseas
Buying a piece of real estate overseas makes economic sense considering the state of the U.S. economy, high unemployment rates, and job insecurity. If you already own real estate in this country and have a good property management company looking after things here, the next logical step is to expand your real estate portfolio to other areas of the world. Here are some of the top reasons to buy your next property overseas:
- Second home in the sun: Considering that you can buy property for pennies on the dollar, it makes sense to buy a vacation home in, say, Puerto Rico, rather than in Florida. For many people, buying a vacation home wouldn’t even be possible if it weren’t overseas.
- Retire abroad: You have the option of renting the property until it’s time for you to retire; then you can enjoy a much less cost of living than if you stay in the U.S. While this doesn’t appeal to everyone, it is worth considering, at least for part of the year.
- Enjoy investment diversity: When you buy overseas, you don’t have to completely rely on the U.S. economy because you’re collecting rent in a foreign currency. If all of your real estate is in the States, then you have all of your eggs in one basket, so to speak.
- Deduct travel costs from your taxes: The cost of every trip you take to inspect and manage your property can be tax deductible.
While it’s true that you’ll need to hire a third party management company for your long-distance property, it’s worth the effort of finding one you trust. Your local management company may have suggestions for you as well, as they often network with other companies overseas.
Before you invest in a property abroad, think about where you’d like to invest and do some research on the country’s economy, demographics, major industries, etc. Talk to other investors and landlords who have purchased real estate overseas to get some advice can tips on which locations and areas are best. If you truly want to retire overseas then you want to be extra-careful about where you choose to buy.
Talk with your accountant to find out what is tax deductible and what isn’t. Amassing private wealth is one of the benefits of investing overseas, but you want to make sure that it makes sense come tax time as well. Be aware of your ‘adopted’ country’s laws and regulations regarding foreign investments.
Also, if you rent the property, you won’t be able to stay there when you visit, so make sure you have lodging accommodations close by.
Before you purchase anything abroad, you may want to purchase here first so you can have first-hand experience at what it’s like to be a landlord and what sort of issues you may run into. Even if you hire a professional company (and it’s highly recommended that you do so!) you will have to go through the buying process, have the final say in selecting your tenants and choose what sort of improvements you want done on the property, if any. Once you’ve had experience in domestic real estate investments, you can start looking abroad.
Benefit National Property Management Services can help you with all of your property management needs. Visit the website today for more information.