Real Estate Investment
What’s International Real Estate?
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International real estate is an avenue of investment that connects investors to the international real estate market through property investment.
The international real estate market includes both residential and commercial properties.
Investing in international real estate enables diversification of your assets.
So…what are you waiting for?
Stay with us as we unpack all you need to know as you prepare to take this step toward increased global mobility and growth…
How Do I Invest in Real Estate in Another Country?
There are a few ways to invest in real estate in another country.
The most popular real estate investment route tends to be residency by investment programs and citizenship by investment programs.
These investment programs allow you to purchase real estate in the country of your choice and – in return – you gain residency or citizenship in that country.
Which Are the Best Countries for International Real Estate Investment?
Several countries offer excellent real estate possibilities for interested investors.
For your convenience, our dedicated team has compiled a list of countries to consider in your real estate investment due diligence process.
The following countries offer enticing real estate investment opportunities:
How Do I Compare Global Real Estate Prices?
The best way to compare global real estate prices is to analyze the ‘Dollar Cost Per Square Meter’ of the property.
Many countries use USD prices to sell international real estate, because of its stability when making large purchases on the market.
Alternatively, you can also consult sources such as the International Monetary Fund’s Global Housing Watch, which presents recent comparative information on property prices globally.
What Are the Risks of Investing in International Real Estate?
The risks of international real estate investment include unpredictable real estate markets, changes in government policies, and booms and busts in emerging markets, amongst other things.
Investing in international real estate can be a lucrative journey, but like any investment, it comes with its fair share of risk.
Although not all risks can necessarily be foreseen, interested real estate investors are advised to carefully evaluate factors such as the country’s financial market and the availability of attractive investment alternatives.
Is Commercial or Residential Real Estate Better for Investment?
When it comes to purchasing international real estate, you have 2 primary options to consider – commercial real estate and residential real estate.
Commercial real estate encompasses properties used for business purposes, such as office buildings, warehouses, retail stores, and restaurants.
Investors who consider this option often have a dual-purpose agenda: to acquire a valuable asset that generates income, and to obtain residency or citizenship.
The benefits of commercial properties include, amongst other things, higher income potential through rent or lease payments. They also present an opportunity to tap into the local economy and business sector.
Whereas
Residential real estate includes properties such as houses, apartments, condos, and townhouses.
The benefits of residential properties include a more direct path to residency or citizenship, a potential steady income stream through rent, and simpler management compared to commercial properties.
However, the return on investment (ROI) might be lower than on commercial properties.
What Are Real Estate Investment Trusts (REITs)?
Real estate investment trusts (REITs) are companies that hold or finance income-producing or real estate investment trusts.
To qualify as REITs, these real estate firms must fulfil several standards. Most REITs trade on significant stock exchanges and provide investors with several advantages.
Although all investments come with some risk, REITs can be a good idea.
Here’s why…
Common Questions About Real Estate
Here’s a list of popularly asked questions about real estate:
You can apply for a home loan in another country by ivisiting your local bank to arrange for an offshore mortgage or by applying for a mortgage from a reputable overseas lender.
We recommend that you seek professional advice in this regard.
Yes, you can get permanent residency in some countries by investing in real estate.
Many residency by investment programs accept real estate investment as an entrance criterion for residency.
The most profitable type of real estate investment is rental units.
The income these units earn often contributes to the home loan taken out for the property or is pocketed profit.
Yes, you can invest in business commercial real estate.
Commercial real estate is generally profitable, as it’ll generate income and/or investment appreciation.
No, often you don’t have to reside in the estate that you invest in.
It depends on the country you invest in, though.
Yes, investing in international real estate can be a good way to get citizenship in certain countries.
Many citizenship by investment programs accept real estate investment as an entrance criterion for residency.
Yes, it’s still possible to invest in Montenegro real estate.
However, as of 2023, Montenegro’s citizenship by investment program is no longer open.
No, you won’t get a passport if you invest in UAE real estate.
You’ll get citizenship if you meet the minimum investment requirements, but you won’t get a United Arab Emirates passport.
After 100 years, the property will revert to government ownership. This means that your descendants won’t inherit it.
You can manage your overseas property by employing a property management agency or firm.
The fastest-growing real estate markets in Europe currently include Sweden, Germany, and Portugal.
A real estate holding period generally refers to a minimum period of time you’re required to keep your purchased property before reselling it.
Real estate holding periods are often mandated in investment through real estate programs.
Yes, we advise that you use a reputable real estate agent to invest in international real estate.
Unless you have in-depth knowledge of the country in which you’ll be investing, estate agents can help you make informed purchasing decisions.
In Conclusion
International real estate can be a very profitable investment if you make the right choices.
It can also be a good pathway to residency or citizenship in another country.
It’s crucial that you take the time to research the investment you plan on making.
If you have more questions about international real estate, please contact us; an expert consultant will gladly help you.
