Things to consider when investing in international real estate

Real estate is always a solid investment. Land is finite, so those in control of the supply will always see benefits. Because it is always in demand, the returns can be very good. It is no surprise that we have seen a rise in international real estate investment as new markets open up and demand increases around the world. Here is why you should also be looking to invest.

More options

If you stick to investing in just the UK, then you are limiting your investment opportunities to a very small and relatively expensive slice of the world. There are so many countries and regions all over the world that are cheap to invest in and are growing in popularity. For example, Montenegro has been independent for over a decade now and has reinvented itself as a place of natural beauty as well as a holiday destination. Tourism is growing into a significant part of this Balkan state’s GDP. Montenegro is also very cheap to invest in, so why not get in on the ground floor and start investing in international real estate.

‘Gain citizenship by investing’ schemes

Several countries offer a scheme where you can gain citizenship in a country by investing in government-approved real estate. Some countries, such as in the Caribbean, will let you do it relatively cheaply – the Dominican Republic, for example, will grant citizenship if you invest $200,000 in government-approved real estate. Gaining citizenship in another country offers you certain advantages, such as having access to the social services of both countries and being able to vote in both countries. In an uncertain world, having more options for where you can live is never a bad thing.

It’s not just about tourism

Real estate you buy abroad can be used for a variety of things. Tourism is an obvious draw for international real estate investors, but it’s not the only thing going on in the world. Depending on the industries in the region, you could use that land for agriculture – in China and Brazil, meat consumption is increasing, so animal farming is a great option in a growing industry.

Currency values

Relative currency value has an enormous impact on where you should invest. Currencies can fall in value for a variety of reasons, but when they do, investments in that country become more attractive since you can buy more of their currency with the same amount of GBP. However, due to the uncertainty over Brexit, GBP is weaker at the moment than it has been in recent years. That’s why you shouldn’t wait for GBP to get lower before you start investing. If you need international money transfer services, then look into money transfer companies in Birmingham and elsewhere in the UK.

Conclusion

Before you do any foreign investment, get in touch with a reputable financial adviser. They will be able to show you various investment opportunities and spell out the potential risks and rewards of going ahead with them.

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