Expatriates and the Case for RentingAugust 10th, 2013 by The JetSetter Team | Comments Off on Expatriates and the Case for Renting
The decision to abandon life in the United States and move abroad permanently is no small one—often, would-be expatriates are overwhelmed and overburdened. Many abandon the task completely. But for those with a will, there is a way.
Expats find themselves in countries all over the world, and while some choose to buy homes abroad, there is a strong case for renting. In countries where home invasion is a concern, many expatriates take comfort in knowing that there is added security in rental homes. In apartment complexes, there are often several passageways for entrance—a locked gate, a keyed building entry, and an individual apartment key. Guards also frequently stand watch over these establishments. For those renting houses or other stand-alone structures, there are generally alarm systems provided by property managers. Occasionally, these places also have paid guards.
In addition to security measures, rentals also provide new expatriates the ability to keep their cash flow liquid. By avoiding a sometimes rare, hard to qualify for, and expensive mortgage, expatriates have more freedom in their new lives. This is especially important in cases where travelers may be uncertain of the country or (more likely) city they’ve chosen as a new home.
Rentals provide an appealing alternative to home ownership because of the generally low price of rentals (especially in the developing world) as compared to higher home prices. Often, these renters will be short-term—waiting a year or two for new homes to be built to specifications or for the sake of price savings.
These ideal renter conditions actually make property investment an alluring option for expats living comfortably in a country, likely those who have settled in with no intention of relocating. First, there is a potential influx of responsible renters looking for semi-permanent housing. In combination with generally low property taxes, this allows investors to maximize their earning potential with relatively low risk.
The Jason Hartman team believes that all real estate is local, even that outside of one’s home country. What this means for you as an investor is simple—you should be familiar enough with the property you’re buying to relay local buying, selling, and renting conditions.
With the right knowledge, expatriates possess the ability to successfully invest in a country of their choosing. Through research, education, and the desire to broaden your investment portfolio, a rewarding real estate career awaits you. (photo credit: infomatique via photopin cc)
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