5 Benefits of International Real Estate Investing
International real estate investing has a variety of advantages. Investors can benefit from consistent cash flow, good returns, tax advantages, portfolio diversification, and even foreign citizenship with carefully picked assets, and it’s also possible to use real estate to increase wealth. Furthermore, you have the added benefit of owning a property in a foreign country which you can use when traveling and conducting business abroad. At Royal Blue Istanbul, we recognized a gap in the market and a tremendous opportunity to design a unique real estate investment offer open to national and international investors alike. Our serviced luxury villas provide high-quality accommodation that can be leased for short-term, medium-term, or long-term contracts and attract a higher customer profile due to their luxury service package.
Are you contemplating an international real estate investment? Here’s everything you need to know about the advantages of real estate and why it’s a wise investment.
Earn Higher Rental Returns
Cash flow effectively profits, rendering it the benefits investors love most. Real estate investing is one of the best ways for investors to earn cash flow. Rental property revenue can help investors recoup their costs and put money in their wallets by providing a consistent monthly income. The initial investment’s cost is repaid over time, and a profit is realized. The primary advantage of real estate investing may be cash flow.
Once operational costs and mortgage payments are made, the remaining cash flow is a real estate investment’s net income. Cash flow generation is a fundamental advantage of investing in real estate. In many situations, as you pay your mortgage and increase your equity, your cash flow will only get stronger over time.
Investing in a high-profile property such as a serviced villa like the ones we have crafted at Royal Blue Istanbul can offer a higher return on rentals when compared to traditional residential real estate. The rate of return can be significantly higher than it is for other forms of residential property because many serviced property agreements offer a fixed price to the property owner. According to the current CoreLogic Hedonic Home Value Index, the gross rental income for all combined capital cities is 3%. Serviced properties, in contrast, provide a net rental investment return of more than 6%.
Great for Your Portfolio
Real estate investing offers the possibility of portfolio diversification. This is because real estate’s correlation with other main asset groups is low and occasionally even hostile. So, using real estate in a portfolio of diversified assets can reduce portfolio volatility and optimize return on risk.
Equity—an asset that is a component of your net worth—is built as a result of mortgage payments on real estate. Additionally, you may buy more properties as you increase your equity, further boosting your net worth and cash flow. With increased equity, you have the opportunity to expand your portfolio.
Real estate responds proportionately to inflation, in contrast to virtually every other type of investment. For example, rents and housing values rise along with inflation, so real estate is an inflationary hedge.
Various tax benefits are available to real estate investors, resulting in financial savings during tax season. For instance, the reasonable expenses of owning, running, and managing a property are often deductible.
The exemption from Turkey’s value-added tax that applies to foreign investors who do not reside in Turkey is one of the amenities that the Turkish government continues to offer to attract more foreign investment to the nation.
Due to this exemption, foreign investors can take advantage of Turkey’s tax exemption and save a significant sum of money when investing in real estate there. It is well known that Turkey’s value-added tax ranges from 1% to 18% of real estate sales.
In Turkey, tax exemptions are regarded as a powerful instrument in the hands of economic decision-makers to revive the domestic economy and function as a lure for bringing in international investments. These cuts included several measures explicitly targeting the Turkish real estate market, which actively and favorably promoted foreign investors to buy more real estate, helped pump new life into this vital industry, and helped revive the real estate market.
Due to its potential to appreciate over time, real estate is a fantastic investment prospect. Real estate owners can purchase and resell properties for a profit thanks to a process known as appreciation. Owning rental homes has the additional benefit of increasing in value. The longer you own the house, its value will rise, and so will rental prices, which typically rise over time. Due to this, real estate is a lucrative long-term investment asset.
The placement of our serviced villas on the outskirts of Istanbul means that demand for high-end accommodation will continuously grow. Subsequently, your property will benefit from a higher rate of appreciation.
A second home in a foreign country
If you invest in real estate in Istanbul, you will gain the advantage of owning a property in one of the world’s most vibrant and culturally rich cities. Being a villa owner also allows you to become a Turkish citizen, giving you access to additional privileges overseas. Turkey’s tourism is booming, encouraging visitors from across the globe and the lifestyle that comes with the Mediterranean climate and Turkish hospitality is second to none.
The Bottom Line
Investing in international real estate opens many doors for investors, personally and practically. Investors can use their property at Royal Blue Istanbul to meet their travel needs, and we will take the work out of generating high revenue from rentals for the rest of the time. Serviced Villas in Istanbul are the answer if you want to invest but don’t want to bother with tenant eviction and property administration. At Royal Blue Istanbul, we have developed a unique investment strategy that offers over 50% more profits than real estate for homes. In addition, you won’t have to worry about finding trustworthy tenants since we will promote your property using our strong connections. Get more detailed expert advice by joining our webinar series or contact us for an in-depth consultation with one of our advisors.
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