International real estate investing can help diversify a portfolio and access prospects in emerging regions.
– A retirement or holiday home. – Safeguarding your money against inflation – Creating a revenue stream in a different currency
- Property ownership regulations and potential restrictions differ per country - You can also come into restrictions that allow you to purchase real estate but make it challenging to sell it and get your money out of the county.
If you want to diversify your portfolio but aren’t ready to buy and adequately manage real estate yet, international REITs could be a good option. It will still provide you with exposure to other nations’ development potential while also reducing the danger of a downturn in your primary property market.
REITs hold and operate commercial real estate that generates income. Some REITs also make loans and other debt obligations backed by real estate.
Real estate is frequently seen as an inflation hedge because, despite secular currency devaluation, it tends to increase in value over time. Despite their benefits, investing in overseas REITs carries several dangers. In many nations where real estate is less developed than in the United States, land rights and taxation can be contentious political concerns.
When looking at overseas real estate, growth and industry should be top priorities. These will provide a solid foundation for long-term capital gains and asset stability.
Tax consequences are also a significant consideration when purchasing overseas real estate as an investment. Consult your accountant to determine the consequences and the best method to structure your acquisition, any income, and the eventual sale of the property.