Foreign real estate investments in thriving markets.
Diversification is the key to any successful portfolio. Seeking an offshore investment is one of the best ways to tap into markets that do will not correlate with domestic markets. Investors all over the globe are finding that an international real estate investment not only plays a major role in the diversification of their portfolio but also is often a gateway to living a happy life overseas.
In this guide to offshore real estate, we will not only tell you which markets are the best for an offshore real estate investment and why an investment of this kind plays a major role in any portfolio, but we want to give you the proper guidance.
Continue reading this two-part series on the 10 best European destinations for your foreign real estate investment.
Why Invest in Offshore Real Estate
Before jumping right into the list, we will cover the benefits of making an offshore real estate investment.
An offshore investment can lead to residency and, in rare cases, immediate citizenship is offered after a high enough investment in real estate. This is perfect for those looking to expatriate or those who want to earn a second passport as a backup plan or visa-free travel. This could be a great gateway to a international retirement or years of stress-free travel.
Tax benefits are another leading factor in choosing offshore real estate. It is one of the few ways that some investors can legally keep some of their money offshore privately. When the asset is held in an investor’s name, as opposed to in a trust or LLC, the investment is not reportable.
Keeping wealth abroad is the main reason investors choose to One of the most important reasons investors choose to buy real estate internationally is to save their wealth abroad. By owning foreign real estate, an investor can keep their money outside of the reach of their local government. There are also greater returns in the real estate markets of other countries.
Are you ready to branch out and diversify your portfolio with an investment in foreign markets?
European Real Estate Markets
Currently, Europe is a popular place for foreign investors, especially retirees, thanks to low interest rates. This, paired with asset class diversification, high income return, geographic diversification, and to hedge against inflation, buyers are flocking markets all over Europe.
European real estate has benefits for investors of all kinds. Some investors are looking for a solid return while others are hoping to make the new investment their home. Whichever kind of investor you are, there is an investment out there waiting for you.
Below are the 10 best European destinations for you offshore real estate investment.
Germany has one of the biggest economy in Europe and was nearly unaffected by the housing crash that hit most of Europe in the 2000s, making an investment in property a stable investment idea. A recent interest in people buying property has caused an increase in prices with a 5.8% increase in 2015 and 8% increase in 2016. The market is mostly affected by local forces like availability of housing stock and changing demographics.
Today, German real estate is thriving. This real estate cycle has brought upon a rise in prices in residential properties in popular cities throughout the country. The growing real estate market is paired with strong population and employment growth as well as declining unemployment. In 2017, employment went up roughly 4% in Berlin.
Since construction rates are low, there is a lot of data showing that demand is high and supply is not able to catch up. In fact, in the popular city of Munich, there’s a vacancy rate of nearly zero. Other cities to note with high demand are Hamburg, Dusseldorf, Stuttgart, and Frankfurt.
Malta is a very beautiful island country with top of the line scenery and real estate. Most of the population speaks English and the economy is backed by a thriving tourism sector.
Real estate is attractive in Malta since prices are relatively low. If bought in the right location, a real estate investment can mean immediate cash flow due to renting and tourism. On a personal level, a home in Malta could be the perfect spot for a family vacation.
Italy’s economy is backed by small and medium businesses. A large fraction of these are in the manufacturing or service sectors. There has been steady growth in the country in the last few years and investment flow has increased to $30 billion USD (€ 26.5 billion) in 2016. That made Italy the 15th largest foreign direct investment recipient in the world. In 2017, Italy was named the 3rd largest Eurozone economy. A lot of this is thanks to foreign investors.
Italy is a picturesque country with great food and culture, and some of the most attractive real estate prices in Europe. According to a report at the end of 2018, transactions are increasing and prices continue to go down.
Currently, the Portuguese real estate market is performing well. The strength of the market is fueled by a demand that is rising due to improved economic conditions. In November of 2017, it was recorded that the property prices have risen by 4.84% from the year before to around 1,144 euro per square meter.
Luckily, there are no restrictions on foreign property ownership in the country and transaction fees are moderate.
Begin the Journey with Alpen Partners
If you are ready to take the leap and make a foreign real estate investment, contact us below!
Read the rest of our list and how Alpen Partners can make your offshore investment goals come true in Part Two!