Investing in luxury real estate properties in foreign countries could yield considerable advantages. You have an entire world to choose from, with the most attractive places having their respective merits and benefits. There’s London, which is a dream destination for luxury lovers and one of the most high-end cities in the world. And, of course, the famous Gulf Cooperation Council (GCC) states that include upscale countries including United Arab Emirates (UAE,) Qatar, Oman, Saudi Arabia, Kuwait, and Bahrain.
Buying properties is a good investment, but owning luxury apartments overseas is even better. That’s because your choices are vast since there are 195 countries in the world. A lot of countries don’t fall short when it comes to grandeur, making them the most desirable places in the world to buy luxury homes and apartments. What’s more, your chance of buying a luxury property that may be within your budget is higher. But, the benefits of owning a luxury apartment abroad don’t stop there. Continue reading to learn more about them.
What Is Luxury Real Estate?
Luxury real estate means properties that high-end buyers are willing to buy or rent at a much higher rate. That’s because such properties are strategically located in areas with luxury activities, like high-end arts, dining, shopping, or are close to other luxury properties. But, some luxury renters want total seclusion or ones with extra security and privacy. Some also want apartments that have mountainside or countryside views, and others seek a waterfront location.
High-end tenants are also willing to pay high-priced rental fees as long as your apartment is on a grander scale. This means that your apartment’s structure must have opulent finishes, over-the-top attention to detail, and custom architecture, making the property beautiful inside and out.
While location and structure are essential, high-end renters also want top-of-the-line amenities. These include temperature-controlled wine cellars, car lifts, motion detectors, home automation, suite, luxury pool, and the like. Thus, they want to experience the same luxury they get when living in their home mansions or properties.
Benefits Of Owning Luxury Apartments Overseas
With all the attributes to describe a luxury apartment, the price of such property may seem too expensive. However, the benefits may outweigh the upfront fees of buying a luxury apartment. Since your target market is high-end tenants, your earnings can also be high if you plan to rent it out. If not, there are other advantages below that you may want to consider:
1- Upgrade Your Lifestyle
If you want a new experience, then buying an apartment overseas, like in Brighton, can give you a different taste of life. By buying Athena Apartments from Gunther Constructions and other real estate construction companies in Brighton, you can experience how to become a ‘local’ Brighton. You can become familiarised with the local culture, which can help you learn other people’s way of living. And, you can carry this experience anywhere you go and share it with others so that they can also understand other cultures.
Since you get first-hand experience of a foreign place, you can have an option to obtain a residency visa. And, with that, you can have more than one place to go to whenever you feel like going away from your original home. Imagine how an upscale apartment in Dubai, for example, can give you splendid access to high-end shopping and ritzy skyscrapers you can adore at any given time.
2- Earn Extra Income
As mentioned, you can rent out your luxury apartment to generate an extra income. This reason alone is why most real estate enthusiasts prefer investing in properties abroad: to earn passive income.
Aside from that, you can list your property in Airbnb and other property listings for vacation rentals. This is especially effective if you use your apartment overseas from time to time. For instance, you lease it out for half of the year and live on it for the rest of the year. That way, you can profit from it instead of just letting it sit there being unused.
And, if you purchase luxury apartments in emerging markets, their value will appreciate over the years. Not only can you earn extra bucks at present, but you can gain more as the value could increase in the future. If that happens, you can sell them to triple your investment if the properties are in the sellable category. A great example is having an expensive beach villa in Palm Jumeirah, UAE, that you can possibly sell for double or triple the price should you decide to liquidate your investment.
3- Free Accommodations
Again, owning a luxury apartment overseas gives you free accommodations whenever you’re in that place. Renting out apartments or vacation rentals are getting more expensive as times go by; thus, having your own property eliminates these extra expenses during vacations.
Especially if you travel to that country for business purposes, your own apartment can provide you with free shelter anytime you need it. If your business plans happen at peak seasons in that country, you may find it challenging to find accommodations. Worse, you may find expensive ones that might not be worth their price.
But, when you own a luxury apartment, you can use it as your second home. And, this is utterly beneficial on your part because some countries can deduct your mortgage interest on property taxes that are labelled as second homes. As a result, you could decrease your tax bill while bringing in extra income through rental and making it your vacation home.
Most importantly, you can focus on doing your business instead of getting caught up with searching and checking in with hotels. Upon arrival, you can directly go to your apartment to rest before doing your business instead of still scouring for a place to stay.
4- Benefit From Other Currencies
When you invest in a property abroad, you’re also investing your money in their currency. Doing so lets you gain the currency benefits in that country as well. Thus, you don’t depend on only one currency, but you have other currency investments, too.
What makes it more beneficial is that you’ll have an economic hedge against inflation in your home country. For instance, your country’s currency may weaken if it generates inflation. If you’ve invested in only one currency, then your investment portfolio value could decrease. But, if you allocated some of your money to other currencies, like buying apartments abroad, you could balance your portfolio. You still have a stream of income that can save you from the other currency’s inflation.
5- Diversify Your Investment Portfolio
Owning a luxury apartment abroad is also a way to diversify your investment portfolio. Aside from protecting your money from currency inflation, you’re also protecting your real estate investment portfolio by having other markets. In case one market drops, you still have other properties that may be doing well. As a result, you can mitigate your investment risks associated with the real estate market.
Buying a luxury apartment overseas isn’t only for vacation purposes, but you can use it to grow your investment. When done right, you can earn from it and have a continuous source of income. Moreover, you can use it to hedge against your home country’s inflation, which can happen at any time. What’s important is to buy one that’s feasible to produce income, whether in the short or long term.