Invest in real estate abroad? Real estate abroad, an Eldorado to yield. It can be a solution to avoid being 100% exposed on your local real estate rate. Apart from the rental risk where rules are to be mastered by a country, how can one access this type of investment?
Invest in real estate abroad, it can be an excellent choice and the best time now. Moreover in this generalized context of rising real estate prices.
Savers want security and that's legitimate. The tangible active stone responds to this protection. Whatever the prices may be today, unlike stock market investments, the investor will always have his property.
Nowadays, real estate is considered one of the safest investments.
Now, as we see on this chart proprietary rates in Europe:
Europeans are overexposed on their local market because they are owners for often high percentages (70% on average).
2/3 of English owners have real estate in the UK, can we really talk about diversification?
Do you have profitability when you know that in big cities London, Manchester, we rarely exceed on average 2% to 3% net per year with prices up to more than 15,000 euros per square meter in London or even more of 4000 euros in Manchester?
In terms of taxation, 17.2% social security levies on property income, property tax, housing tax, inheritance tax, taxation on capital gains or even IFI ultimately weigh somewhat on the profitability of its investment?
Real estate and price
In the end, whatever the price, the taxes, this sector will always be in demand because everyone must lodge. And that will always remain so.
This market remains relatively stable, and from year to year, prices will continue to increase over the long term. This makes this investment a good way to make money "passively".
If you are an owner, renting your real estate will allow you to have a source of additional income. You can even live on it if you know how to do it. And since rents are subject to price indexation, your cash inflows are protected against inflation. Finally, real estate is the best way to prepare for retirement. All of this means that if you want to find a good area to invest in, you can get into real estate.
Of course, you will have to take into account several aspects such as market trends, urban development or the economy. For example in France, taxation is "heavy" and Paris, for example, is among the most expensive cities in the world. Taxes continue to rise and real estate prices explode (close to 10,000 euros/sqm at the time of writing this article).
It is an over-exposure of investors in their local markets,
Property prices too high in France and in many European countries (France, Belgium, Switzerland, Luxembourg ...),
Various taxes and various come gradually weigh on the profitability.
In UK or France, you will still find +/- 4% net on the non-professional furnished rental on service residences and after?
Diversify investment with real estate abroad (and with real estate in general)
If you invest abroad, you have the opportunity to find cheaper and much more affordable goods. The returns will then be higher than if you invest in your own country. You will also enjoy the strength of the Euro and play on the exchange rate.
Then imagine that the tax on your property income, capital gains or inheritance tax is lower.
It would, therefore, be wiser to invest to diversify in real estate abroad, but it remains to know which destination to privilege, how and when?
If you want to diversify your already existing Real Estate Portfolio we encourage you to have a look at this list
, and get some Stocks/CFDs in the mix!!