Investing Beyond Borders: Is International Real Estate Investment a wise and realistic choice right now, specifically during the COVID-19 pandemic? -Part I
What is the central reason for considering expanding your financial horizons by adding new products to your investment portfolio? Ultimately, what are you seeking to accomplish?
The obvious answer is, to secure higher returns on your capital, undoubtedly. Though that is not all.
Another central component to any such move, which should certainly be considered, is increasing your sense of financial security. For yourself, your family and dependent ones, and the prospects of a brighter, more comfortable and financially secure future for everyone. Profit maximisation and increased financial security are therefore some of the main key driving forces when contemplating such a move.
The closest ally when it comes to increasing your profits, and your financial security in the face of local or less local turmoil of any kind, is diversifying your portfolio beyond your own borders. A choice taken by an ever-increasing number of avid -now international – investors. Such diversification can, more often than not, be successfully accomplished by investing overseas. One evades any local negative developments which may affect your investment and secures capital and profit in a different part of the world, in case things do not develop as positively as expected within the limits of your national borders.
As tapping into foreign markets generally is unavoidably entangled with regularly staying up to date with local news, developments and politics on a day-to-day basis – a fairly demanding and challenging task in its own right – the real estate market can present a more stable choice, involving potentially new, yet impressive opportunities for expansion, growth and profit.
So, who are the usual stakeholders of overseas Real Estate investment?
In fact, there is a wide diversification of the various profiles that constitute the ecosystem of newly engaged international investors. Many are high net worth individuals; some are business owners staked in international ventures or family men or women who encourage their offspring to pursue an international education. A fair number are professionals seeking diversification for various reasons, some of which we have briefly mentioned earlier. Some are all of the above.
As globalisation proceeds with ever-increasing momentum, however, the number of lay investors who are progressive and innovative enough in their thinking, and have a clear vision of the future forming ahead, join in. They have been doing so in steadily and dynamically increasing numbers for the past few years. Considering the new shape the world is reforming into, that should come as no surprise. This global ‘reshuffling of the cards, or the current ‘re-organisation’ if you prefer to call it that, on a number of levels from the geopolitical to the socioeconomic and beyond, can be perceived in different, often seemingly contrasting ways.
Global changes: A nuisance, or a blessing for overseas Real Estate investors? It really depends on the position of the observer.
Investors who were not prepared for this global initiative for change can perhaps be startled and even worried by these developments. Even more so, as the current COVID-19 pandemic seems to further accelerate and perhaps even augment the intensity and the spectrum of the aforementioned re-organisation globally. Also, while most countries internationally struggle in their effort to contain the coronavirus, a number of travel and other general restrictions and hindrances have consistently presented over the past year or so, further increasing doubts about the feasibility of overseas property investment.
All in all, what would seem like genuine reasons raising questions and casting doubt for some, on whether investing beyond one’s national borders is even currently possible. To those willing to take notice appropriately, however, those eager to do their research in order to approach these changes methodically and strategically while guided by the right agency through the process, they can mean only one thing: a sure and steady increase in profitable opportunities globally. Therefore, an opportunity for you to prosper accordingly is in sight and within your grasp. What you do with it, will make all the difference.
Investing beyond borders and tapping into lucrative overseas real estate markets possibly ripe with innovation and room for profit maximisation comes with several advantages, and potentially some issues to consider and manage wisely and effectively, in order for your investment to flourish. The points presented above, namely the reasons people are currently driven, often dynamically, to invest in Real Estate beyond their own national borders and the set of circumstances and issues in need of serious consideration on your end for an overseas Real Estate investment to flourish appropriately, are exactly what will be the topic of the second part of this article. Effectively, why more and more people seem to invest in property abroad to increase their profitability and the ways for you to do this most effectively in order to prosper. Stay tuned.
31 May 2021