A changing global economy has certainly given rise to some challenges across real estate markets this year, but it has also opened up a number of opportunities.
The strong dollar has made UK and European property an attractive venture for US buyers, whilst increasing mortgage rates in various countries have led to a decrease in the number of homebuyers and a larger-than-usual demand for rental properties.
With travel back on the menu, and people keen to make up for lost time when it comes to trips abroad, holiday lets are also proving a profitable investment opportunity.
With this in mind, we propose some key resolutions for those looking to make a real estate investment next year.
1. Review your finances
The first thing you’ll want to do is conduct a financial review, as this will help you determine your property budget for the coming year.
Your budget will likely determine which country or area you buy property in, the property type and size, alongside other factors such as buying costs, taxes, and cost of living.
Because of this, it’s best to get a good idea of how much you have to spend before making any other decisions.
2. Outline your investment goals
The purpose of your investment will influence a number of your decisions when selecting a property. Are you looking for a rental investment property, a holiday home or full-time residence?
If you’re looking for somewhere to rent out, it’s important to identify a location where there is high demand for either short or long-stay accommodation.
Those wanting to use the property as a “home from home” will need to consider how much time they’d like to spend there, and whether they need to acquire a visa or residence permit.
3. Identify your location
Whilst some of you will be in search of a holiday home by the sea, others will be looking for a city-centre property with high rental demand. Either way, when making a real estate investment you’ll want to find a location where house prices are on the up, so the property makes a solid long-term investment.
At Benoit Properties, our global real estate portfolio is geared around established cities within stable and growing economies, and we work daily to identify value within these markets.
4. Find your perfect property
Consider what features you’re looking for in a property—including bedrooms, amenities, specification, etc—as this will help you narrow down your search.
If you’re thinking of buying overseas, you might like to visit the property, although this is not essential. We partner with developers that have excellent track records for delivering successful projects, so much of your due diligence is already taken care of. That said, you might like to conduct your own research for peace of mind.
5. Calculate your costs
Non-cash-buyers will need to source out the best available mortgage options. You’ll also need to assess your tax situation and calculate your total taxable gains. Other expenses, such as stamp duty and closing costs, should be taken into consideration.
When buying property in any country, it is important that you have correct legal advice and appoint a representing lawyer.
We have built a team of professionals around the world who inform our clients of relevant property and tax laws, and help them make important financial decisions throughout the buying process.
6. Secure a good exchange rate
Fluctuations in global currencies are opening up lucrative opportunities for overseas buyers.
The strong US dollar, in particular, allows US investors to acquire property in the UK and across Europe for much lower prices than in previous years.
Wherever you choose to purchase property, our network of financial experts can help you secure the best exchange rate in your preferred location.
Making a real estate investment in the new year makes for a fantastic resolution—whether you’re hoping to purchase your first investment property or add another to your portfolio. By following these steps, you can achieve your investment goals and build wealth in the new year.
Contact us today to discover property investment opportunities around the world.
