The ultimate goal of every investor is to accumulate huge wealth to secure an early retirement plan and gain financial freedom in future.
Investment in Real estate in today’s age can be a profitable decision. Returns are also good in real estate. It takes long time and dedication to build Real Estate Empire. When you are thinking about expanding your investment portfolio by investing in overseas property, it is important that you should be aware of the rewards as well as the risk involved in it.
Overseas property investing is often demonized in the media, which paints the picture of tax evading investors who are investing their black money in the international market. Overseas property investment offers you benefits but it also offers some risk involved in it.
1. Relieve tax requirement:
Many countries are known as tax heaven. It is not a secret that certain international investment opportunities offer tax incentives. Many small countries offer tax incentives to foreign investors as it stimulates the flow of foreign currency which helps their domestic economy.
2. Expanding your real estate network:
With the help of global edge, awareness about the market can be achieved. You can broaden your knowledge in micro as well as macro real estate market (local and international). As a result of overseas real estate investing you can gain expertise when and where to invest.
3.Diversify your asset:
Overseas property investment allows you to diversify your portfolio, which domestic market may not. From this comes the expertise that your property will be protected even if economy badly strikes you in the domestic market.
4.Accumulate greater wealth:
Investing in the overseas real estate can provide you greater financial rewards. Because you are not restricting yourself to one investment. The international real estate market can provide you with the opportunity to expand profits in case of a downtrend in the domestic market. This is because international markets do not move in the same direction.
1. Political and economic risk:
Some countries have a very high risk of political and economic instability, which could affect investment in such market.
E.g. Syria, Gulf countries
2. Currency Risk:
Currency Risk is another big risk for investment in the overseas real estate. Change in currency exchange rates between Indian Rupees and other foreign currency are unpredictable and volatile.
E.g. Venezuela currency crunch
3. Real estate laws:
We all in the era of globalization, but still each country have its own set of laws. We have to adhere such laws. Such laws can be complex and different from laws in the domestic country.
Investment in an overseas real estate can become beneficial if such investment is done with proper analysis of overseas market and the foreign country. The investor should also ensure the timing and location of investment to gain more and more benefits.