8 Reasons to Buy Overseas Real Estate Luigi Wewege President, Caye International Bank

 

8 Reasons to Buy Overseas Real Estate  Luigi Wewege  President, Caye International Bank    There was an upturn of 3.2% in the GDP figures in the third quarter of 2022, but the change is unremarkable.  Despite indications of growth in some economic activities, most economists suggest the economy will continue to slow for at least the next few months.  Financial markets and other investments in the US, including property markets, remain unpredictable, creating a demand for more tangible assets and the diversification provided by overseas real estate.  The Bureau of Economic Analysis readings for the third quarter showed a +3.2% change in the US GDP in the third quarter, compared to -0.6% in the second quarter. Despite growth in some economic activities like industrial production, retail sales, and job growth, many economists still fear the possibility of a lurking recession.  Investors tend to turn to hard assets at times like these, and since the US property market faces a price slump, they look for overseas property opportunities.  “There are many reasons why investors turn to overseas real estate,” says Luigi Wewege from Caye International Bank, “but one of the major reasons is seeking a haven from the type of economic volatility we currently face.”         Here are eight reasons to buy overseas real estate right now    1. Discounts Due to Currency Advantages  When buying with USD or another strong currency, you can buy much more property in a market abroad with a weaker currency. Currently, the USD is at historic highs, meaning enhanced spending power.    The current surge in the value of the US dollar is producing unexpected opportunities for property investors holding the currency in many overseas real estate markets. It’s at historic highs against the euro, the pound, and other key currencies.         2. Currency Diversification  Buying a house overseas allows you to gain the benefits of diversifying into another currency. Currency diversification through property enables you to gain the benefits of earning an income or equity gain of the property in that country’s money.    Buying with the current strong conversion rate for the USD can also mean that even if the property value does not increase in local currency, you will have appreciation if the exchange rates return to historical averages.         3. Cheaper Properties  Besides the advantage of currency savings, properties in many overseas countries are highly affordable compared to properties in many US beach towns. “Caye International Bank facilitates real estate loans in five currencies and low-interest rates, with negotiable amortizations and terms,” says Wewege.         4. Earn an Income  Whether you buy a second home or have your eye on investing some money, overseas real estate can generate an income that can help pay for the property running costs and create a nest egg in the local currency. Even if you plan to holiday at your overseas property, you can rent it out short term to others.  Remember that most European countries have lower rental net yields for long-term rentals, but these increase with short-term rentals, especially in the coastal areas of the Mediterranean.         5. Privacy And Tax Advantages  Americans don’t have to report their personal or rental overseas property to the IRS. Therefore, your foreign property remains out of reach to lawsuits, your ex, and the US taxman.  There are also some US tax advantages when you rent out the property. For example, the interest paid on your mortgage is deductible from your taxable US income, as is the cost of trips to check on your asset.         6. Diversify Your Portfolio  Investing some money on overseas real estate diversifies your investment risk because it’s in another market. But, as we said earlier, you also diversify your exchange rate risk and avoid liability risks.         7. Brings Residency Perks  If you want to fast-track residency to countries like Greece, Spain, and Portugal to access the Schengen Area, you can purchase a property as part of their Golden Visa Programs. In addition, some countries like Northern Cyprus and Montenegro don’t have a price limit on how much you can spend to receive residency.         8. Low-Cost Vacations  Besides investing your money wisely, buying overseas real estate means you can choose a place to holiday without adding expensive hotel stays. As a result, you can enjoy the benefits of holidaying (or even retiring) somewhere with a lower cost of living, and you can escape the cold winters of the US.         Final Take  As you can see, buying overseas real estate makes perfect sense right now, especially if you want to diversify your investments and create an income in another country. In addition, your investment can provide you with a dream holiday destination and a financially secure retirement. For more information on investing offshore and in Belize real estate contact RE/MAX Belize!

Comments

Post a Comment

Popular posts from this blog

Wheeldon v Burrows(easement case)

Wheeldon v Burrows Easements; implied easements Wheeldon v Burrows (1879) LR 12 Ch D 31 is an English property law case on the implying of grant easements. The case established one of the three current methods by which an easement can be acquired by implied grant, and has effectively been put into statutory force by Section 62 of the Law of Property Act 1925 of England. Facts Mr Allen owned a piece of land and a workshop in Derby, which had windows overlooking and receiving light from the first piece of land. He sold the workshop to Mr Wheeldon, and the piece of land to Mr Burrows. Mr Burrows built on the property, and it obstructed light into the workshop, which had only skylights. Judgement Thesiger LJ held that because the seller had not reserved the right of access of light to the windows, no such right passed to the purchaser of the workshop. So the buyer of the land could obstruct the workshop windows with building. He said the following.[1] “ We have had a considerable...
Read more

Abbey National Building Society v Cann

Abbey National Building Society v Cann [1990] UKHL 3 is an English land law case concerning the right of a person with an equitable interest in a home to remain in actual occupation, if a bank has a charge and is seeking repossession. A controversial decision, it held that "actual occupation" entails some degree of permanence, and that if someone buys a property with a mortgage, the bank's charge is to be treated as having priority over any equitable interest. Facts George Cann lived with his mother, Daisy, in Island Road, Mitcham. She had contributed to the purchase price, and so George held the house on trust for himself and her, even though it was solely registered in her name. They moved to a smaller house that cost £4000 more in South Lodge Avenue. To buy it they used the proceeds of selling the Island Road home and got a mortgage from the Abbey National. Daisy knew this was necessary. She did not know that George had also taken another mortgage for £25,000. La...
Read more

Dyer v Dyer

Dyer v Dyer [1788] EWHC Exch J8, (1788) 2 Cox Eq Cas 92 is an English trusts law case which held that where property is purchased by one person in the name of another there is the presumption of a resulting trust. Facts A person provided money to purchase a legal estate in land in the name of another person, and there was no evidence that the purchaser intended to advance a loan or make a gift. It was therefore assumed that the legal title holder holds the property on resulting trust for the person who provided the funds. Judgment Eyre CB stated "the trust of a legal estate, whether freehold, copyhold, or leasehold; whether taken in the names of the purchasers and other jointly, or in the names of others without that of the purchaser; whether in the one name or several; whether jointly or successive - results to the man who advances the purchase-money".
Read more