Real estate investments abroad? Here's where to go

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Despite covid recent years have seen a great increase in real estate investments abroad, in fact, if we analyze some data, we can see that compared to 2007 housing bubble, investments in foreign real estate have increased by 75% and even 200% compared to 1998.

Where is it best to invest to maximize profits and minimize losses?

What factors do you need to take into account before investing abroad?

Among the countries most coveted by real estate investors currently there are:

SPAIN:

Because Spain, you may be wondering, simple! The economic crisis that has brought all of Europe to its knees has caused incalculable damage to the Spanish real estate sector, with the collapse of the average house price up to 45% and consequently the bankruptcy of the major builders.

If you decide to invest in Spain you can benefit from the effects of the economic recovery and therefore from a revaluation of the property purchased.

We can divide Spain into 2 areas:

·         Mainland Spain: investments are basically developed in 3 cities, Madrid where an expense of at least 4,000 euros per square meter must be taken into account, Valencia the most "economical" around 3,400 euros per square meter and the most coveted by Italian investors, Barcelona, it concentrates about 15% of real estate investments and requires an average of 3,700 euros per square meter.

·         Islands of Spain: it is the area where you can do the best deals, characterized by a strong tourist impact thanks to the mild temperatures all year round where, especially in the Canaries and Formentera you can buy houses with 1,500 euros per square meter and as I wrote in this article, take advantage of the short-term rental business.

USA:

The stars and stripes real estate is growing exponentially and consequently represents a magnet for real estate investments.

Tourist destinations are obviously the most popular with New York in first place.

Doing real estate business in the Big Apple is not easy due to US laws and usually prohibitive prices, an average investment can reach up to 2,000,000 euros, but if this country fascinates you and you can bear a large expense, the most attractive areas they are close to Central Park and in the heart of Manhattan.

Besides New York, you can also invest profitably in Miami or Dallas, as in other cities in Texas where you can easily find homes at 20% discount that, according to experts' forecasts, will be subject to revaluation in the coming years.

UK:

Despite the very high prices especially in London, it can reach up to 20,000 euros per square meter, the English capital continues to attract many out of state real estate investors, since according to sector experts by 2021 house prices will increase by 25%.

Another type of business that is certainly cheaper, but at the same time profitable, is the investment in university cities such as Oxford, Cambridge or Bristol.

SOUTH AMERICA:

In South America it is easier to carry out a good real estate investment, not only for the decidedly lower prices, but also for the numerous tax advantages enjoyed by real estate purchase transactions.

It is not located in South America, but one of the most sought-after cities by real estate investors is Sydney in Australia, for its affordable prices and expected real estate revaluation of around 10% since the end of 2019.

What you need to do before investing abroad:

·         Know the laws in force in the place where you want to invest

·         For the purchase of a property abroad, it is cheaper to pay with an international bank transfer rather than opening a foreign account

·         Rely on local agencies, they know the regulations and are able to advise you in case of any extra expenses

·         Always visit the property in person, to avoid nasty surprises

·         Ask your neighbors or those who live nearby to find out if you are investing well

·         Always show attention to ads, they could hide pitfalls

In conclusion, home buyers should know that an investment abroad must be carried out with extreme attention, without haste, analyzing every detail and without neglecting taxation which can be very different from ours.