Overseas property investments can be highly lucrative dependent on the location, expected rental income and growth of the surrounding sector. However, even when not accounting for these factors, investments abroad can be beneficial for many investors. Some of the main benefits are:

Rental Income

Dependent on location, investors may be able to set a higher letting value than with standard residential units based in the investors home country. Choosing a popular holiday destination can be greatly increase your capital growth.

Capital Growth

Holiday homes usually hold their values and can greatly appreciate in value over time. Although it may be difficult to exit, the resale value will most likely be higher than the purchase price.

Knowledge

Investing in overseas property will require specific industry knowledge, so it is expected that investors are seasoned. Whether an investor is not well-educated in this specific field or not, it is expected that investors partake in due diligence to mitigate as many potential risks as they may be able to.

Management

Thankfully, these ventures can be hands-off if the property is let through a management company.

Exit Strategy / Liquidity

It is expected that investors looking into overseas property come with a long-term plan, and an understanding that liquidity of their asset is based on that countries housing market. This sector can be arduous but contains great returns.

Location Example: Brazil

With 210 million inhabitants living in Brazil, it is no wonder that there are 72.4 million private residential units, of which 10.3 million are apartments, this creates an exciting opportunity when combined with Brazil’s successful home-grown tourism, as both holiday and rental opportunities are in demand. This also coincides with the 6.5 million yearly tourists. Both international and national investors find that Brazil’s strong tourist economy is an excellent opportunity to gain a strong capital return.

By taking time research and delve into the various location you may be interested to invest in, there is a potential to gain a significant capital when investing overseas.