If you have fallen in love with a destination overseas, you may have wondered what it would be like to live there. You’re not ready to take the leap and move abroad full time? Then the thought of investing in a vacation home or using it as an investment opportunity may be appealing. Here we’ve explored some beautiful destinations that are well worth the investment and what you need to think about before you begin your exciting property journey overseas.
Before you buy a property abroad
We’re sure the number one question is how to finance your property abroad. We recommend talking to an expert in this field. Whether you are buying the property outright or looking to secure an overseas mortgage, be aware of any language barriers that come alongside signing and looking through legal documents. Employing the help of an international property specialist and a translator can help make this part of the investment process easier.
Once you have your finances and destination in mind, consider how you are going to transfer funds if you aren’t physically in the destination. Research a convenient way to send money abroad and use a trusted company that offers a favorable rate. Western Union allows you to send up to €50,000 in one single transaction, which makes paying and financing your overseas destination a more seamless experience.
How to find your overseas propertyAre you looking for a way to invest your money or simply somewhere to escape to during the summer or winter months? How often you are going to be staying in your property and what you expect from it are all questions you’ll want to think about. If you need inspiration from a German overseas property expert, then check out Immonet to begin your search.
Investing in the European property marketHere are our top five destinations for vacation homes that are not only great places to live but also fantastic investment opportunities.
1. Zagreb, CroatiaCroatia's capital has seen prices for condos increased by 20% in 2018 compared to 8.5% for the rest of Croatia. Demand for Airbnb properties is also on the rise with a 30% increase in homes listed for rent in Zagreb; a great indicator of investment potential.
3. Costa Rica
Rental Yield: 7.48%
Effective Rental Income Tax: 5.16%
Due to its declining property prices and growing tourist numbers, Costa Rica is a great option. In San Jose, the country’s capital, the average listing price of houses fell by 2.2% in 2018 according to encuentra24.com with average prices for a one-bedroom apartment costing €476,000.
2. United Arab Emirates
Rental Yield: 5.19%
Effective Rental Income Tax: 5%
In a bid to secure high net worth individuals, recent visa reforms make the UAE very attractive if you plan to live and invest overseas. If budget isn’t a concern, you can secure a five-year residence visa if you invest at least €1.2m in property. In Dubai, average property prices stand at €200,000 for a studio, €290,000 for a one-bedroom and €293,000 for a two-bedroom apartment.
Rental Yield: 6.13%
Effective Rental Income Tax: 4.06%
Property prices in Manila have risen by 10.6% this year, making the Philippines the number one choice for real estate investors. Property for sale in the capital costs €190,000 for a small condo on average. The only limit is that the total number of foreign-owned units in a single building is not allowed to exceed 40%. Low tax rates and an impressive rental yield make the Philippines a strong investment potential.