Navigation

All categories

Archives

Monthly Wrap: The benefits of investing in an international property

Currencies Direct November 9th 2023 - 3 minute read

Thinking of buying property abroad? A holiday home is a great investment. Buying property abroad can be financially rewarding as well as providing you with a great base from which to explore a new part of the world.

The perks of owning a holiday home are abundant; from extra rental income whilst you reside in your country of domicile, to cheap and easy holidays for your family and friends, owning property overseas can completely transform your lifestyle.

In this article we will be looking at some of the ways you can benefit from investing in an international property.

Extra rental income

Long term ownership of a second home can provide you with a steady stream of income. Better yet, that income will be a passive one, requiring minimal effort from you to see a healthy return.

Whether you decide to let your property long term, or seasonally in your absence, renting out the empty space could be financially beneficial to you. If renting your property seasonally, the average weekly cost of a holiday home far exceeds that of a long term let, leaving you with a higher income on a shorter basis.

Property value appreciation

As time passes, property value tends to appreciate. Though this isn’t guaranteed, and shouldn’t be the focus of your investment, it’s worth considering the potential benefits. For example, the average property value in Spain has soared by 20% in the last ten years, allowing those who invested in Spanish property to make long term gains through their purchase.

Buying a property abroad now could provide you with a safety net for the future should house prices in your selected country increase.

Broadening your assets

Buying property abroad is also a great way to diversify your assets. With your investments spread far and wide you’ll be maximising your range of financial income. It’s good investment practise to avoid keeping all your eggs in one basket, as this can mitigate factors such as market risk, exchange rate risk and liability risk from negatively impacting one lump sum investment.

Be wary of fluctuating interest rates, economic movements and global circumstances when considering your purchase though, as these can impact your overall return.

Upgrade your holidays

Your trips abroad could be cheap, easy and stress free, knowing you have a secure and rent-free nest to enjoy your holiday from. The added bonus of being able to stay as long as you like is another great aspect of owning property overseas.

Without needing to worry about booking in advance, a holiday home could even add an element of spontaneity and excitement to your trips abroad. Whisking yourself away whenever you like to a home away from home could be a great stress reliever, providing significant personal use for you and your loved ones.

A property overseas might also amplify your retirement plan. With an increasing number of people choosing to move abroad permanently to enjoy their post-working years, you could begin expanding your retirement options. Today’s investments could become tomorrow’s permanent retirement plan, saving you hassle and extra costs in later years.

Personal retreat

You can choose where to purchase your special hideaway. By a sunny stretch of coasts, with year-round hot weather? Or maybe tucked away on a snowy mountain, the perfect base for an alpine explorer. No matter what your dream location is, the opportunity to create a personal and magical home away from home is what seals the deal for many holiday homeowners.

With the potential to make endless memories for you and your kin, as well as a bit of extra cash on the side, buying property abroad could be an all-round positive investment for your future.

Save money when investing in an international property with Currencies Direct:

You’ll more than likely be transferring large sums of money overseas when purchasing international property. Here at Currencies Direct, we specialise in overseas transfers. We offer excellent exchange rates, with no transfer fees, allowing you to start saving money immediately.

We also offer a range of additional services which can help to protect your money from currency volatility.

For instance with a Forward Contract you can fix an exchange rate for up to a year. While locking in a rate in this way would mean you’d miss out if the exchange rate strengthened, your future transfer would be protected from any negative market movements.

To find out how much you could save, get in contact with one of our friendly currency experts via phone at +44 (0) 20 7847 9400 or by email at customer.s@currenciesdirect.com.

Written by
Currencies Direct

Select a topic: