There are a lot of reasons why investing in a second property overseas is a better choice than investing in one domestically. For starters, the cost of real estate abroad is often cheaper than it is in their home country. In addition, when the market for investment properties in an overseas location is booming, this makes it a great time to invest.
Finally, buying an investment property abroad comes with certain tax advantages that can save you money in the long run. Hence, if you’re thinking about investing in real estate, don’t overlook the benefits of doing it overseas.
Among the reasons to invest on second property overseas are:
1. It protects your assets from being affected by local economic turmoil.
People who intend to buy second property in Singapore have since been looking at other options overseas to further diversify their assets mainly because of this mindset: it’s never wise to put your eggs all in one basket.
Why stick with your home country when it comes to protecting your assets? The answer is simple: politics and local economic activities have an effect on currency exchange, and to a certain extent, property value.
This means that if you buy property overseas then the value of what’s purchased could increase due an improved local economy or changing political climate. Meanwhile, staying safely outside any heated markets where prices may be fluctuating too much.
2. Take advantage of tax exemptions.
Those who wish to buy a second property in Singapore know how taxes can eat up their funds, so investing property overseas can be a very good alternative.
You may be able to offset foreign income tax if you’re paying it overseas on your rental income or capital gains. What’s more, depending on the laws in place where that property will live and whether it is a primary residence for those days (or weeks/months), this could make sense as an option worth exploring.
3. It helps build your retirement plan.
Fretting over how you’ll afford retirement can be a thing of the past if you take advantage of overseas opportunities. Many people pay high fees and taxes just to live in another country, but those who move abroad will find that they are actually residing on their profit from owning property there.
A lot of people these days wish to retire from their jobs early so that they can explore the world and live on their own terms. The only thing that hinders them from doing this is that they don’t have any assets under their name yet. Of course, should you retire early, you will be spending your benefits to sustain your daily needs. If you choose to travel or do other leisurely activities, it’s only a matter of time before you realise there’s nothing left in your bank account.
Investing in property abroad is a means to safekeep your money for retirement. You not only have a home to live in, but you get to live in the place you like without worrying about running out of funds.
4. Qualify for a second passport.
Having property overseas can be the first step to acquiring a second passport. You may have to live in that country for at least two years in order to become a citizen, but that becomes a breeze since you already have a home to live in once you decide to relocate.
