Home Vs Overseas – Which is the best investment?
The key to a successful investment strategy is the diversification of your property portfolio. By choosing to invest in different asset classes, locations and countries, you can safeguard your investment against micro and macro-economic forces.
We take a look at the benefits and pitfalls of purchasing at home or overseas to help you to make an informed choice about what is right for you.
Benefits of buying in the UK
The UK market is well established, and despite recent political upheaval thanks to Brexit, in terms of the purchase process, it’s still very much a safe location in which to purchase property.
For many UK investors, staying within a known and familiar market is comfortable. You are accustomed to the conveyancing process, legal system, taxes, and tenancy laws.
It’s also more likely that you will be familiar with the area in which you are seeking to acquire property, and even if seeking to enter into a new location, a knowledge of what drives demand in the UK market can make your research a little easier.
However, while a home bias is completely understandable, it can mean that you miss out on excellent opportunities to add assets in countries with more scope for growth, and better rental yield opportunities.
With ‘uncertainty’ somewhat of a watchword when it comes to the UK property market at the moment, adding overseas investments to your portfolio can be a great way to guard against the risks of fluctuating UK property values.
For many, their first overseas investment may come about as a result of wishing to acquire a holiday home, or investing in a property with the objective of moving there at retirement. Often in this case it quickly becomes clear that there are further opportunities afforded in the chosen location.
Favourable currency rates can also be a benefit when looking to diversify into new locations, and helps to insure your portfolio against fluctuations within specific markets.
With many established locations such as London, New York and Hong Kong currently in a period of price stagnation/correction more investors are turning to emerging markets.
Benefits of investing in newer markets include an opportunity for quicker price growth and a relatively low entry rates in prime locations.
As with any investment, the key to ensuring the success is to property research your chosen location. Does the infrastructure allow for growth, are projects underway which are likely to drive employment in the area, are tourism figures high?
Home or Overseas? – We Can Help
Whatever your investment objectives, preferences and risk type – at Benoit Properties we can assist you to build a portfolio that suits you needs. All of our investment locations are carefully researched for growth potential, rental demand, and rental yield.
We work with all of our clients to really understand their short, medium and long term goals, providing advice and strategic information.
Working around the globe, we help you to build a solid, structured portfolio.