In the early 1980s, real estate investors looked for local opportunities. Now, international ... [+]
Among many considerations, two should prevail for investors investing in residential real estate worldwide. The first is to choose the best locations. The second is to consider the country’s citizenship and residence offerings. Fortunately, there are resources available that can help the investor undertake both of these priority tasks.
Where To Invest In Real Estate
As to where to invest in residential real estate, there are many options. For high-end residential real estate, Forbes Global Properties might be a good choice. For those looking to buy something in one of the bigger metropolitan cities of the world, Baron and Cabot might be more suitable. Other options might be Live and Invest Overseas and Nomad Capitalist.
However, perhaps the best guide for investors can be found in the International Real Estate Index, which identifies, compares, and contrasts the top 20 global destinations for real estate investment in 2024. This report, compiled by real estate expert Ronan McMahon, founder of Real Estate Trend Alert (RETA), and his team, identifies markets offering a unique blend of value, growth potential, and quality of life. Each location has been carefully evaluated across ten categories, including relative value, income potential, quality of life, and international appeal.
Moreover, the Index pinpoints places that excel in at least two of the following three areas: 1. Value for money, that is, growth potential (and thus the potential to deliver strong capital appreciation); 2. Strong appeal to short-term and long-term renters from home and abroad (to deliver potential rental income); and 3. Excellent quality of life.”
Getting A Second Citizenship Or Residence
As for evaluating a location from a citizenship or residence point of view, some worthwhile guides are Henley and Partners, Nomad Capitalist, or even our own here at Pace Law Firm, where I am practising law called the Pace Passport Index. However, one of the best resources to check out is that of Arton Capital. Their citizenship and residence evaluations guide investors on the best place to live and which passport to acquire. Founder Armand Arton argues that, “investor immigration helps to change the destiny of individuals,” and he strongly “believes in promoting international mobility.”
Plan B - A Second Home And Passport
To be more specific in helping investors seeking to diversify and establish a Plan B, one can use the information from these resources to make it easier to choose which is best. For example, according to the International Real Estate Index, the top ten places in the world to invest in real estate are in this order:
1. Los Cabos, Mexico
2. Caminha, Portugal
3 (tie). Riviera Maya, Mexico
3 (tie). Rocha, Uruguay
3 (tie). Estepona, Spain
6. Panama City, Panama
7. Medellín, Colombia
8. Guanacaste, Costa Rica
9. Silver Coast, Portugal
10. Montpellier, France
Once an investor has chosen a real estate site like one of the above, the investor can refer to Arton, or one of the other citizenship and residence sites, for more details about citizenship and residence prospects there before deciding which to buy.
Other Considerations - Financing And Taxes
As for other considerations that need to be employed, one is whether or not the investor can access mortgage financing at the location chosen. Often, one has to finance a foreign purchase by leveraging local home assets, but several sources are available to potentially finance foreign purchases, including HSBC, Barclays, and other banks. Another is to consider the tax regime in the chosen location. Resort to a local tax adviser is best in this case.
Embarking on the adventure of finding a second home can be exhilarating. Being prepared for the unexpected in this way can be very useful when life does not go according to plan.
