What Are The Best Real Estate Investment Opportunities?
Are you looking for real estate investment opportunities? It’s no secret that the global economy is in a deep recession right now. The COVID-19 pandemic hit every industry hard, and the economic fallout of it all but crushed many countries.
In these circumstances, the real estate market tends to crash alongside others, and prices go down. However, the pandemic-related crisis is unique, and so is its impact on real estate. Instead of crashing, housing prices are off the charts in some areas. The growth of the property market and some additional factors borne out of this crisis created a stellar opportunity for real estate investing in 2021.
One of the other most important factors that affect property markets today is the fear of inflation. It’s a reasonable fear because inflation cannot be avoided due to the rising debt and economic recession.
Real estate has always been one of the safer investment opportunities. But now the situation is unique in that you can purchase properties abroad that will appreciate rapidly. However, you’ll have to look beyond the US borders to get the best deals.
If you want to succeed in real estate investing, you need to follow the most recent news and trends to understand where the best market opportunities lie. Then, you’ll be able to explore markets that can offer higher ROI. Also, you’ll be able to avoid the high costs of global real estate investing with the help of online money transfer platforms.
Global Real Estate Market Analysis: Best Investment Opportunities for Spring 2021
The global real estate market is robust even though the economy is in a recession. Some countries are indeed struggling, and properties there do lose value fast.
However, there are many places where the circumstances (growing demand and lower interest rates) make prices soar. And there is still more room for growth that a global real estate investor could explore. Top countries among those for the spring of 2021 are:
Despite the global economic situation, Turkey is doing quite well and attracts a lot of attention from global investors. This is definitely why the real estate sector is extremely hot here.
Istanbul, in particular, has the highest price growth globally today, and it’s expected that within ten years, housing prices there will increase by over 220%.
Therefore, buying a property in Turkey now presents you with an exceptional opportunity for capital appreciation. The country’s location at a crossroad of major trade routes is extremely advantageous.
It’s a link between Europe and Asia, and it seems that the country’s economic strength and relevance on the global macroeconomic scene are growing with every year.
New Zealand’s real estate market is currently one of the strongest in the world. It has been doing quite well even before the coronavirus crisis. However, the country’s response to the pandemic propelled it forward.
It’s safe to say that New Zealand dealt with the crisis in an exemplary manner, which earned the country global admiration. More importantly, it reduced the economic impact of the crisis on a country that mostly relies on export and tourism, both deeply affected by the pandemic restrictions.
The median house prices in the country went up by 16.77% over 2020 compared to 10.28% in 2019. They keep growing as the market is getting stronger. This trend is sure to continue as the country’s economic recovery progresses steadily.
The UAE, real estate market is notoriously volatile. However, no one can deny that this country isn’t lacking in wealth. It’s currently one of the fastest-growing economies and therefore a great investment. In fact, as a prospective buyer of property in the UAE, you should know that prices there have actually fallen a bit. However, this only makes this investment more attractive.
This real estate market offers a rather high yield by default. Also, there is guaranteed capital appreciation over time as the country is going from strength to strength despite the global recession. And most importantly, the nation offers a range of tax benefits to real estate investors.
Germany isn’t the flashiest of European countries, but it’s your safest bet for real estate investing. That’s because the country is one of the top five economies in the world. Germany is a powerhouse, and the local real estate market is notorious for its stability and growth. The country also has a reasonably low cost of living for the EU and has low taxes.
Gradual price growth on the German housing market has been going strong all throughout 2020, and it continues the same. The migration crisis currently plaguing Europe only boosts the market along by increasing the demand.
How to Cut the Cost of International Real Estate Investing Through Foreign Exchange
There is no denying the fact that real estate investing can be a very lucrative business. However, it’s also true that investing in property abroad can be prohibitively expensive. This is especially true in America as domestic banks make large international transfers costly.
But today, there is a way to make this more affordable so that even small real estate investors can enter the global market. You can do this by using one of the money transfer companies servicing USA clients. These companies cut the cost of foreign currency exchange and usually have very low or no international transfer fees.
The result is that you can save over 1% on every transaction. This will end up being a large amount as any property deal will involve high-volume transfers. Sensing an international bank wire transfer can cost you over 3% of the transfer amount.
The transaction will be even more expensive if the exchange involves exotic currency. In these cases, it may go over 5% of the transfer volume. This is because the foreign currency exchange margin used by banks is always high. However, you cannot avoid exchanging currency when making an international transfer, especially if you aim to purchase property abroad legally.
The main difference between money transfer companies and banks is that they allow you to convert currencies using the interbank exchange rate or have a meager FX margin. This is the lowest possible rate, which means that they always offer a better deal than a traditional bank.
In essence, online money transfer companies are currency wholesalers. That’s why the majority of them charge lower fees and offer better exchange rates for high-volume transfers.
Depending on the company and currency pair, the cost of such transfer can be under 1%. These companies also offer services like currency hedging, which can help you save even more money in the long term.
Is This a Once-in-a-Lifetime Chance for Global Real Estate Investment?
Even if you’ve never thought about becoming an international real estate investor before, now is the time to consider saving up for a property abroad. The global economic situation is very complex due to the coronavirus crisis and the recession it triggered. However, the real estate markets do not react to this by crashing as they usually do in a downturn.
In fact, many of them are growing rapidly and offering great investment opportunities. As current interest rates are some of the lowest in recent history, this indeed seems like a great chance. And with the help of money transfer companies, even small investors can purchase more affordable properties abroad. Spreading your portfolio worldwide offers more security and more opportunities for higher yields.
About the author: The above article on real estate investment opportunities was written by Jane Koval. Jane is a freelance writer. Her interests range from the latest e-Commerce trends to traditional folk culture and adventurous traveling. She always stays open to new ideas and expertise to make her writings handy and captivating for the readers.