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International Land For Sale
Purchasing an international property in another country is a good strategy for diversifying your investment portfolio. An investment in foreign real estate requires active and ongoing management and administration, including property visits and establishing an infrastructure of support on the ground in the place where the property is located. While you’re diversifying your portfolio and possibly increasing your net worth, you’re also reinventing your life. That is the real upside to foreign real estate as an investment class.
According to U.S. News, there are 12 benefits of owning international property which are as follows:
- Own a second home in the sun. If you’re in the market for a vacation or second home, taking your search overseas can mean spending $80,000 for a house on the beach in Brazil rather than $500,000 for a home on the beach in New Jersey. For many, buying abroad is what makes it possible to afford a second home at all.
- Retire abroad for pennies on the dollar. As a retiree with a home of your own in the overseas retirement locale of your choosing, you can take advantage of a super low cost of living, as little as $1,000 per month or less.
- Enjoy a rich cultural experience. Owning a home of your own overseas makes you truly a local, meaning a richer cultural experience.
- Achieve true investment diversity. If you have a “diverse” portfolio that’s all invested in U.S. markets, then your eggs are, in fact, still in one basket.
- Benefit from currency diversity. Just as having all your money in U.S. markets means you’re at the mercy of a single economy, having 100 percent of your investments in U.S. dollars means your investment future is fully dependent on the fate of the U.S. dollar.
- Earn an income abroad. Rental investment in another country can generate an income stream that’s independent of the U.S. economy and often denominated in another currency, as well. For example, the cost of buying in Medellin, Colombia is low, and returns can surpass 10 percent annually. Further, the currency of Colombia is the Colombian peso, making this a non-U.S. and non-U.S.-dollar income stream.
- Deduct travel costs from your taxes. The cost of every trip you take to visit and manage your investment properties overseas can be tax-deductible.
- Enjoy the security of a hard asset. In the current climate, hard assets are a sensible investment class for securely storing value. As real estate investors are fond of saying, the value of your property can’t go to zero, unlike your stock in Pan Am, Enron or eToys.com.
- Profit from the world’s agriculture boom. Some of the most solid investments over the past few years have been agricultural. The world’s population is exploding, while the amount of available farmland is shrinking. Expanding demand and limited supply add up to a smart play that’s only going to get smarter.
- Store your wealth privately. Real estate overseas is a tax-efficient investment, meaning this is an opportunity for you to store and grow wealth privately.
- Take advantage of international asset protection. Having assets offshore makes it harder to get to. A deliveryman who trips on your sidewalk can probably get his hands on your bank accounts if he sues, but it’ll be much more difficult for him to lay claim to your condo on the beach in Panama.
- Open the door to foreign residency. Owning property overseas can give you a “foot in the door” to the country where the property is located. It’s another place where you can hang your hat. And in many countries, owning real estate locally qualifies you for a residency visa.
LandHub.com is here to help you every step of the way during the process of purchasing an international property. We are pleased that you have chosen our platform to bring your vision to life.
International Property for Sale
There are tons of reasons why one might be interested in buying international land. Maybe you found a cool place to vacation, or you want to spend your days after retirement in a place that gives you warmth and peace. Either way, acquiring international land will be a different experience than buying conventional land in your country. There is a myriad of factors that one must consider before buying foreign land. So, it is better to educate yourself before you buy an Italian villa or a French château.
Many high-end investors are keen on getting a piece of land in a foreign country and are watching the international markets closely. High rental returns have attracted plenty of people as they generate an inflow of cash and also help in repaying the mortgage.
How do I finance my purchase of International land?
Often financing proves to be the trickiest of all. If you plan on approaching a foreign bank for a mortgage, get ready to pay a heavy down payment and a potentially high rate of interest. You may also be asked to buy a life insurance policy. This is done so that if anything happens to you, your mortgage can be recovered. If you do not want such a hassle, you can pay for the purchase in cash. The home equity line of credit can also be used as a cash source.
Which country is the best to invest in?
If you want to buy foreign land as your nest egg for the future, you must ensure that you study the financial systems closely. Other countries might work differently than in your home country. However, there are several countries that tend to give high yields. Indonesia is one such country that comes to mind since it has abundant natural resources and its economy is performing excellently. With a successful domestic market, Indonesia may be one of the best countries for investment in real estate. The country’s population is dense so you can easily find people to rent your place. Renting your property seems more logical as you get stable and higher profits. The government of Indonesia is trying to get a system that would increase investments in real estate from overseas.
How should I begin looking for an international property?
One can hire an agency that specializes in overseas properties or hire an agent who has experience in dealing with foreign investors. This prevents terrible mistakes and illegal transactions. One can also buy overseas property directly if he has done his homework. There are several websites that operate in different countries. Visiting the popular real estate website of the country of interest will be beneficial. In the USA, Zillow is a famous website that provides valuable information. Besides this, one must hire a local attorney who would help you navigate through the legal matters.
What are some other factors that need to be considered?
The cost of living is one very important factor that needs due attention. If you plan on staying in the house that you buy, then this factor is very crucial. Places that have a high cost of living may not be suitable in terms of affordability. Proper research should be done in order to come to a conclusion. Food, healthcare, and transportation should be taken into consideration to evaluate the cost of living. There are ownership restrictions too in some countries. Investors are not allowed to buy coastal properties in Mexico. Many countries have such restrictions. It is better to do your research and contact the locals to get the best deal.