One of the few things you can count on in life is change. This is especially true when finances are involved. However, these days investing in international property and real estate can be a solid way to protect your money, with the added bonus of giving you that beachfront villa you’ve always wanted.
In terms of land, Jim Rogers the famous investor put it best: “They ain’t making any more of it.” This means that the sooner you can start acquiring some of it, the better. Especially with the recession of the past few years, international real estate and land prices are at an all time low, which could add up to stellar appreciation in years to come.
Investing in property allows you to put your capital into something tangible that has a purpose, even if it doesn’t have structures on it. Not ready to build yet? Not a problem. In the meantime, the land can be used for agriculture while you wait for the area to develop to your liking.
Purchasing international real estate also allows you to diversify your portfolio into other currencies and economies. This is your best hedge against the recessions and finance bubbles that have run rampant in recent times. No matter what happens, you’ll always have access to something that you can use and that will retain some sort of intrinsic value (unlike playing the stock market).
Where should you be looking to buy? Anywhere that people are flocking. One popular trend to follow is to invest in overseas retirement havens. Countries like Costa Rica and Malaysia are becoming more and more accommodating to retirees, which means that they are developing quickly. With Baby Boomers coming into full retirement age and looking to make their nest egg stretch as far as possible, this is sure to be a very active market in coming years.
Of course, before jumping in head first you’ll want to do you due diligence for any investment, but this is particularly true for real estate. That pristine beachfront property online could be a hurricane raveled disaster now. But more than just understanding property value fluctuations for the area, as a foreigner, what can affect you more when buying property internationally are factors like taxes, property ownership laws, and selling stipulations. For instance, some countries will make it simple to invest and then nearly impossible for you to sell, which takes money out of the local economy.
All-in-all, while there are risks with any investment, buying international property investments abroad can be a fantastic way to have your cake and eat it too when looking to take your assets international.
