There’s a town in Italy that has been selling houses for over $1. Although the sale comes with terms – the homes are in poor condition and buyers must renovate within three years of purchase – it has put a spotlight on overseas property investment.
South Africans are investing overseas to diversify their portfolios. So, which destinations are top of the list?
Perhaps it’s the Mediterranean lifestyle or its favourable climate, but the European country is sought after amongst South African property investors. According to experts, it has one of the most fastest growing property markets in the world and a stable economy. The type of investment that works well here is rental or vacation property. A quick Google image search and it’s easy to understand why.
For tourists, Portugal has risen as one of the top European destinations to visit which means, that it’s property market has been booming. Why? The popularity and convenience of Airbnb meant that visitors no longer wanted to be confined to a hotel but rather, live like the locals.
Lisbon and Comporta are popular cities with pristine beaches. Lisbon offers the best of the Mediterranean lifestyle while Comporta offers a quiet village lifestyle that is ideal for weekend getaways.
With over 700 000 residents, the island country is experiencing a surge in its property market. The key reason is citizenship. According to experts, with a €2 million investment you can obtain full European citizenship for life for you and your entire family up to the age of 28 years.
Citizenship benefit aside, the country is also constructing a large residential and yachting facilities, which aims to provide investors with luxurious lifestyle.
How to find the funds to invest
You don’t have to be a billionaire to invest overseas. Finding a home loan for foreign investment is possible but there’s a lot of grunt work that needs to be done. If you’re serious about property investment, then it will be worthwhile for you.
As mentioned, plenty of research needs to be done and a financial advisor on hand would be helpful. Things you need to look out for include interest rates, insurance policies, and how much deposit is needed. This is why sitting with a financial advisor is crucial – it helps you determine your budget, financial goals, etc.
We suggest you invest locally first before taking the next big step on the international stage. To find out how you can get started in the South African property market, book your seat at our FREE property investment seminar, where you’ll discover various funding strategies and property investment types.