Who wouldn’t want to be able to travel abroad at the drop of a hat – especially nowadays – and escape to a new destination to get some much-needed rest. Virtually anyone would enjoy the luxury of easy travel and access to perfect accommodations at our fingertips, but it’s generally difficult to attain. However, if you are one of the lucky few able to travel and invest in a vacation home somewhere calm and sunny, then this is a proposition you should carefully consider. Buying property is always a good move, especially when you can afford it in a foreign currency.
If you’re mulling over whether or not to purchase a vacation property overseas, then read on for more information.
Own a “Getaway” Home
A vacation house is basically your home away from home. You can go there to decompress, but still have a sense of ownership over the space since it belongs to you – a very different feel than staying at a hotel. While you can always purchase a beach house nearby, sometimes owning your dream property is more feasible abroad, given the favorable currency exchange rates and the fact that your dollar can stretch farther in other countries. Besides, visiting a different location entirely is a wonderful experience and one that you are bound to enjoy for many years to come.
Investment Diversity
A diverse financial portfolio is a key to long term fiscal health. As any financial advisor will tell you, not keeping all your eggs in one basket, so to speak, is an important factor to consider when you’re saving or investing money. Buying property is an excellent way to invest and, eventually, get many returns on that investment. For one, you will be enjoying a beautiful place at least once a year, in a space that you can truly call home. Second, you will have provided yourself and your family what is considered to be the security of a tangible, “hard” asset. In these strange times, real estate is considered a hard asset and one in which it would behoove people to invest as soon as they can to better protect their portfolios.
Earn Income
Since you don’t plan to be at your vacation rental all year round, it would make sense for you to find alternative ways to earn income on the space. For example, you can rent out the apartment or home during most of the year, and save the money in that country without having to send it back to the US to be taxed. This money can be saved to help pay for your daily expenses when you are vacationing there, or simply stowed away till the funds are needed at a later date. In all cases, buying a vacation property can be monetized in more ways than one.
Look Into Getting Residency
Purchasing property overseas can be the first step in obtaining residency or even the nationality of said country. Having another country to call your own might be beneficial in numerous ways. For sure, you will develop a stronger bond with the country and its locals, which will make living there a part of the time much easier. Furthermore, you can probably take advantage of different tax breaks only available to locals, which would also be a smart way of handling your investment.
Explore a Different culture
Owning a home overseas will eventually lead you to become a real local, thus enhancing the cultural experience. You will dive in more readily to learn the language, local customs, eat and drink representing the region, become more familiar with the country’s arts and entertainment scene, and so on. This is an invaluable learning experience all around for everyone.
Receive Tax Deductions
Traveling abroad to maintain a property that you own might qualify you for a tax cut. Check with your accountant or financial advisor first, but the norm is to receive a tax cut for property maintenance, which, of course, is an added boon for you as an investor.
Cost of Living
If you do your research and purchase property in a relatively affordable country, this will help you in many ways in the long run. It is advisable to find a locale that is amenable to the currency you possess in hand and generally provides you with the best value for your buck.
There are quite a few positives to purchasing property abroad. You will have a dreamy place to visit and perhaps retire. It will take the form of a solid asset that can be liquidated in case of any emergency, rather than dipping into any cash reserves, and it can be kept in your family for generations to enjoy. If you have the means, then there’s no reason for you to not consider purchasing a home overseas soon.