For the average Australian, investing overseas is a foreign concept (pardon the pun). For many the idea is tossed in the ‘too-hard-basket’ or dismissed as a viable opportunity due to widespread misinformation and outdated beliefs. But what if we told you there are so many greater benefits to overseas investment that you never thought possible and that you might be missing out on!
Knowledge is power, so we’ve put together this list of what we believe to be the Top 5 Advantages of Investing in Overseas Property to break down those outdated beliefs and help you make a more informed decision when looking at your next investment property.
1. Lower entrance point
When buying a propety overseas you can potentially save thousands of dollars by taking advantage of lower upfront costs and more lenient eligibility criteria to qualify for a loan. Particularly for younger investors, looking to buy property overseas can provide a giant leg-up when starting their portfolio as they will require less of a deposit and less income.
Most Australians don’t even bother looking at overseas property prices to compare value because let’s be honest here, it is challenging. Theres a language barrier, the debacle of currency conversion and how will you research the local area? We get it. So you might be shocked to learn that many overseas properties are priced considerably lower than the sky-high Australian market we are used to. There are many cheap properties that young investors or less risk-averse investors can take advantage of and get far more bang for their buck.
3. Higher rental return and strong capital growth
The average rental return on an overseas property is around 10% and can be up to 17%. Most properties are cash flow positive and have a stable rental return with higher capital growth. Finding these two factors can be a challenge locally in Australia with the current market.
Buying a property overseas could help you build an international portfolio. Having properties abroad can help you minimise investment risk, especially if you do your research well and you partner with a good property management company. You can also save on tax because these locations have different tax brackets and you might fall into a smaller income bracket in other countries.
5. Excuse for a holiday
Investing overseas makes holidays that much easier when you can just stay in your own property. Feeling in need of a European holiday? No problem, schedule a getaway to your very own holiday home.
Comparing local to international markets may seem challenging, unless you seek assistance from a business that specialises in this area. Enter, Premium Property Group. (That’s us!)
The team at Premium Property Group are experts in international property investment and have done all the hard work in finding the perfect investment opportunity so that you don’t have to. With years of international market research and first-hand travel knowledge our consultants are the reliable choice for first time investors or buyers wanting to get that extra edge with an international property.
Contact us today at email@example.com.