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Guide to Investing in Foreign Real Estate in 2019

The foreign real estate market is stronger than ever. The rise in global connectivity has increased the possibility for individuals to own property outside their home countries, as well as invest in commercial real estate. With the recent global economic fluctuations, power is no longer concentrated in the hands of sellers, and buyers have now gained the advantage when it comes to property-related transactions.

Whether it is a strategic move for your company, a shift for your portfolio or the desire to own a second home in a booming metropolitan hub, Foreign real estate today can be one of the most promising means to invest your money.

Why invest in properties overseas?

Expansion of Portfolio – An investor’s strongest suit is their portfolio; the more diverse their dealings, the more likely they’re able to grow their wealth successfully. Making smart choices is important, and foreign real estate has proved to be one repeatedly. Dealing with overseas market gives investors ample opportunities including easier access to rental income in a foreign currency and opening overseas financial accounts.
Tax Implications – A growing number of individuals and institutions invest their money in overseas properties as a way to store it and waive off the tax levied otherwise. This is, of course, a benefit depending purely on the country and its policies. But, many countries are now on the lookout to diversify their culture and help their economy move forward, which leads them to provide tax benefits to overseas investors.
Safety Net – Life is uncertain, as is the economy of a single country. When you put your money in a foreign real estate market, it provides you a net to fall back on, regardless of the economic climate in your own country. It also adds an extra layer of protection as the legal handlings of real estate is different in each country and keeps your investment overseas separate from your country’s legal jurisdiction.
A broader market – When you start diversifying your portfolio, investing overseas gives you a broader range of options to choose from. Every country is affected by political and economic events being experienced, giving each market its own appeal. With more options, the foreign market also carries the advantage of being less competitive and gives you a chance to increase your network and your expertise in the field.
Long term benefits –  People today are on the lookout for opportunities everywhere, especially for the future of their children. Such dreams, though, can become very exorbitant when they are realized. To be safe from such burdens, a number of caregivers today look to invest in countries that can prove to be a good place for their children to settle down in.

Considerations to look out for when investing overseas

  1. Global Standing – With the growing connectivity between countries, major companies are looking to expand into foreign markets. With big multinational corporations setting up shop in various cities throughout the world, their chosen destinations are high up in the ranks of the global index and gaining momentum. These places also become attractive as they offer job opportunities and high standards of living
  2. Business Opportunities – A country’s economy directly affects the growth of its companies. But when you have more than one economic wave to surf on, you get an array of opportunities for both personal and commercial expansion. Depending upon your professional objectives, a country’s industrial opportunities can be exactly what helps your business boom.
  3. Transportation and conveyance – A well-connected city is a haven. No matter where you go, you’re bound to travel in the future, both within the country, you live in and outside. A growing network of public transport, as well as frequent flights and train options, are a bonus any investor should look out for.
  4. Government – The government of the country you choose to invest in not only decides upon your economic growth but also sets the standards for giving citizenships to overseas investors. According to a recent report, a grand total of 26% of the global Ultra-High-Net-Worth-Individuals will begin to plan for emigration this year, which will prompt a large number of countries and their government to offer them citizenships and residencies through investment schemes.
  5. Infrastructure – The infrastructure of a place is like its backbone. A flourishing country will have always have well-developed infrastructures. Roads, hospitals, schools along with others are necessary for a peaceful and hassle-free life. The better the infrastructure, the more likely it is that the country will attract investments in the future.
  6. Culture and lifestyle – The culture of a place impacts every aspect, from the way people live to the food they eat. The cultural diversity offered by the population is also a key factor affecting the likelihood of your acceptance and comfort. Every country, with its own culture, offers a unique lifestyle which is essential to the growth of you and your family.

Some of the hottest property markets in 2019

Expanding to an overseas market can seem daunting for a novice investor, here are three booming markets for you to consider:

The United Kingdom – The United Kingdom has a fast-growing population, being one of the most densely populated countries in Europe. Each census sees a jump in the number of households in the UK, making it a smart investment which guarantees rental yields, economic stability and long term financial returns. Whether the UK proceeds with Brexit or not, it’s capital London is still going to be the world’s leading wealth centre in 2019.

Abu Dhabi, UAE – As the capital of the United Arab Emirates, Abu Dhabi is the largest of the seven emirates. It makes up two-thirds of the UAE’s economy and is a major commercial and industrial hub. With oil prices fluctuating, Abu Dhabi’s properties are currently on the lower scale, predicted to stabilize in the near future. 2019 is the perfect time to invest in the UAE before the real estate market catches up again.

Malaysia – Malaysia is considered to be a paradise by many, but it seems to be a great option for real estate investors looking to expand their portfolio overseas. Malaysia has seen a steady gross domestic product (GDP) growth through the years, making it one of the best markets for Indian investors looking to start somewhere close to home. Malaysia offers a variety of property options ranging from luxury sea-facing properties to newly constructed estates. The country also makes overseas investors quite comfortable with its tax reforms and financial incentives.

Interested in learning more about investing in property overseas? Get in touch with us at info@kryptonglobalinvetments.com for a free consultation on the best foreign real estate market for your investment.

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