As Brexit day looms closer, more and more British investors are considering overseas property investments. Indeed, with only worst-case scenarios at hand, it’s impossible to predict how the British economy is going to react to the transition period out of the EU. However, one thing is for sure; there has no been a scenario in which the UK would gain from its exit. It’s hard to say how long it would take for the British economy to recover. Therefore, in the meantime, if you are considering a buy-to-let property, you might want to think not only outside the box but also outside the country. Indeed, investing in overseas property can give you an advantage in terms of audience reach. Even when you factor in taxes, exchange rates, and management cost, the right type of property can still prove hugely profitable. If you are unsure where to start, there are three main types of foreign property investments that will thrive and attract tenants or guests:
Everybody loves a holiday home
The first and most common type of overseas investment when it comes to property is to buy a holiday home in a popular destination. It’s a good idea to pick the hot destinations in the holiday market, preferably option for areas outside the European and Northern American regions. Thailand, for instance, appeals to foreign travellers for a variety of reasons, both business and holiday focused. Bangkok was the number-one visited city in the world in 2018, making it an excellent location for a holiday home for western visitors. Similarly, places such as Brazil are also favourite destinations, especially the coastal region which appeals to international and national tourists. In other words, do your research and identify the hot tourism spots for 2020.
An everyday rental for professionals
Is a long-term rental property a good idea as an overseas investor? With the support of a trustworthy management team, you can make the most of condo and apartment sales in busy cities around the world. Typically, your rental needs to be within easy distance from large business hubs so that you can promote your properties to business visitors – for conferences or work projects –, employees, and independent consultants who need to travel. It’s essential to offer a variety of services and facilities, from a fully equipped kitchen area to laundry, cleaning, and WiFi. Indeed, business visitors can’t afford to worry about managing their lifestyle and everyday needs when they are on the job. It’s your role to provide an apartment and service team that do all the hard work for them.
A dream house for romantic couple holidays
Last but not least, more and more couples are looking for a memorable experience to celebrate their relationship. Whether it’s an intimate honeymoon or a special anniversary, a romantic villa with all the comfort they can dream of makes an appealing property. What does a romantic villa consist in? Requirements vary a lot, but typically high-quality vintage decor, hot tub or swimming pool – depending on the location –, breathtaking view, and modern comfort are part of the deal. You can also consider added external services, such as a breakfast hamper with local delicatessens or a chauffeur.
Foreign property investments can come in a variety of shapes. However, considering rentals for holidaymakers, couples or professionals on the go is an excellent strategy to ensure a constant stream of clients. There is no denying that your success will depend a lot on your ability to find a management team with a knack for hospitality!
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