One of the most lucrative investments out there is in property, and it’s long been lauded as one of the best places for investors to stash their cash. Putting money into bricks and mortar has always been seen as a good option for a long-term retirement plan, as opposed to the riskier money makers like precious metals or shares. There were initial concerns about the UK tax laws changing but there is still a good return to be made in investing in property in the UK. Property investment overseas is also a fantastic investment for your portfolio, so if you’re sick of the cold weather where you are, it could be worth looking further afield for your next portfolio addition.
Some people invest in their own country as part of the inheritance that their children may receive some day, whereas others are busy using a home loan calculator 2018 for property overseas because a holiday home seems like a great idea! And those people would be right; investing in property abroad could change everything for your financial future, but only if you do it right and pay attention to the pros and cons of doing so. Growing your nest egg can mean choosing to go beyond the borders and investing further afield. The thing is, investing in any property comes with a level of risk, and as long as you understand the risks, you can minimize them and maximise your profit.
Below, we’re going to take you through the pros and cons of investing in property so that you can make a solid decision about your investment future.
Cons
From the moment you decide to invest in property, you already know you will need a considerable sum of cash behind you to access the market of your choice — whether this is at home or abroad. You should consider any uncertainties in the housing market you’ve chosen, because there are rarely any options for a quick get-out of the contract. Unlike cars, property generally takes longer and is more complicated to sell, so it may not be for you if you’re going to need fast access to your cash.
Another consideration to make is that most investors don’t add the hidden costs into their purchase price, which means that they can really escalate when you haven’t thought about it — meaning you spend more. Property prices fluctuate depending on the market movement, so it can be pricey to buy in your chosen country.
If you do want to go abroad rather than stay in the UK, you may have to consider that the process to evict bad tenants is much longer than at home, and if your house ends up standing empty for a while, there won’t be an income from it.
Pros
With everything mentioned above, you shouldn’t be discouraged. Knowledge of the investment market and expert professional knowledge can help you to mitigate and overcome the above risks. Property is an investment that is a solid one, and if your investment forms a part of your portfolio rather than being the entire thing, you’re going to have a good balance.
Property is one of the markets that is less volatile than other investment options out there. For example, the stock market changes and moves far quicker, whereas property stays pretty steady. The other positive about property is that people will always need an option for housing, so you’re almost certain to end up with tenants, if you rent it out, or buyers, should you choose to sell. There’s also the fact that in general, property is in demand and when you decide to go abroad for yours, you’re investing in something that will never be less than an excellent asset.
The biggest pro of owning property? The bonus you get in retirement. Investments mean that you can claim inheritance tax when you choose to leave your property to the kid, and if you do it before you die, it’s a gift that won’t be taxed (assuming you stay on the property less than 7 years after giving it, of course).
Knowing all the risks as well as the rewards when it comes to property investment is a good place to jump off, and if you are truly serious about putting your money into investing abroad, you need to know everything there is to know about your chosen location and market — it’s just good sense! Investment in property is largely positive, so do your research and make it happen.
