Want to escape the hustle and bustle of the city? These days, you can find amazing properties to purchase popping up in plenty of enviable locations, many just a short flight from the east coast of the US.
Most people indulge in a vacation property abroad just for a specific location they love, to either share or spend in retirement. The property is entirely yours to visit when it's not being rented out and can potentially make a great rental. Here are some other key benefits of buying a property abroad to rent out.
- Your Own Piece of Paradise
- Is Yours to Enjoy Whenever & Can Also Be Rented Out
- Can Potentially Benefit Your Tax Strategy
Your Own Piece of Paradise
The hectic city life can be exciting but it is also tiring - frequent escapes to somewhere a little more relaxed become an essential luxury. Whether it’s a change in climate or culture you’re looking for, you can have your very own paradise getaway with a property abroad.
You might have fallen in love with a location you visited or want somewhere similar to home, but a bit more exotic. For example, Bermuda is a combination of many different cultures and customs, taking heavy inspiration from both British and American heritage. It is also a “first world” country with a highly developed infrastructure including a state-of-the-art hospital. You’ll find it strikes the right balance between familiarity and laidback island life, meaning you can settle in rather quickly. You can even use US dollars there - no need to exchange!
How fantastic would it be to jet off to your dream destination whenever you felt like it? What’s even more impressive is if you purchase in a condo hotel model, your property is maintained while you’re away. So you just turn up and enjoy a professionally decorated abode with everything spotless - even after accommodating guests.
This convenience and low maintenance style of ownership are what more and more prospective owners of property abroad are looking for. It means you don’t have to keep up-to-date with rental laws and regulations as the on-site management takes care of everything. You just bypass all the hassle and continue to reap the benefits of a property in an amazing location.
Is Yours to Enjoy Whenever & Can Also Be Rented Out
If you purchase a property abroad, it’s likely you love the destination enough to establish a foothold there. It might seem obvious, but the main benefit is you get to vacation there whenever you like. It’s your second home, somewhere you can continue to experience new things and people.
You not only save money on vacations, but you also get to return to a place you love time and time again. You’ll find yourself very popular with your friends and family when word gets out you’ve bought a property abroad, especially in a spectacular destination. All they need is a flight and their sense of adventure.
Airbnb might be how you manage your property, but there are great benefits to buying a condo in a resort branded under one of the big hotel names such as Hilton, rather than a single-family home, for example. The rental operation featured in these properties get to utilize the brand's worldwide reservation system and can access its loyalty members. These factors boost demand for the hotel, improving rental occupancy and at a good room rate.
For instance, Bermudiana Beach Resort is set to open Spring 2021 as part of the Tapestry Collection by Hilton. Situated in Bermuda, a cluster of mostly-interconnected small sub-tropical islands, this sought-after destination has become a second home for many on the east coast of North America. With whole ownership of a condo at Bermudiana Beach Resort, you get 90 days available for personal use each year and the remaining 275 days are available for rental.
Condo hotels often have upscale amenities to keep guests occupied and encourage them to return. They’re all yours to experience and enjoy when you’re at the property, from pools to bars and restaurants.
Can Potentially Benefit Your Tax Strategy
Owning international real estate can also enhance your tax strategy regardless of your country of citizenship. If you’re a US citizen, then you likely know just how hard it is to reduce your tax burden legally. Between citizenship-based taxation and laws like FATCA, it’s incredibly difficult to lighten your tax load.
However, there are two types of overseas assets you legally don’t need to report to the IRS: precious metals stored overseas in private vaults and international real estate.
This means you can put your money in a foreign real estate investment without paying any taxes. However, you should keep in mind that your international real estate's tax-exempt status doesn't fully apply if you rent or sell the property.
Please note, it’s always best to obtain tax related advice from your tax advisor.
With all the considerations and costs, the decision to purchase a vacation home requires extended preparation. You need to ask yourself questions before taking the plunge on buying a property abroad to rent out, but we hope you'll consider a condo for your next vacation home.
That’s why we’ve made it that much easier to put it at the top of your list.
Get the Ball Rolling and Purchase Your Property Abroad...
Buying overseas property opens up an exciting world of opportunity but it’s also a world of risk if you’re unsure of the process. Don’t worry, we’ve got just the guide. We’ve put together a resource that will help you get better acquainted with condo buying laws and guide you through the buying process.