Investing in real estate is not an investment channel that requires many introductions. It is one of the most popular and stable ways to leverage your savings and enjoy a stable income for years. For years, real estate investments have been the preferred investment channel by investors around the world. The possession of a physical asset that can be seen with the eyes and put to a wide variety of uses, provides security and above all – a long-term and diverse benefit. The threshold for entering this market is lower than ever and many can enter this market even with very little prior knowledge. In recent years, more and more investors are turning their gaze towards Europe. If you too have become interested in the opportunities that await you in the European Union in recent years, these are some effective tips for choosing investments in Europe.
Know the local legislation thoroughly
One of the first challenges we will face when we come to make real estate investments will be in the legal field. Each country has its own regulations when it comes to foreign investments. In addition, it is very likely that the legislation surrounding the purchase, marketing and rental process will be quite different from what we have known so far. Different countries may limit the The amount of rent we can rent, placing many barriers to evicting non-paying tenants and reducing our options when it comes to property benefits and renovations. It is important that we take a deep look at all these aspects and get to know them well. If we do extensive enough research, we will find that there are quite a few countries in Europe that are very investor friendly foreigners, while others make active efforts to prevent investment in Europe from outside the country.
overcome language and cultural barriers
It is impossible to enter into an investment without knowing the local climate. Familiarity with all the elements that influence the consumer’s decision-making will allow you to make the most of your investment property. Therefore, it is recommended to visit the destination country for investment and make sure that we do manage to assimilate into the culture. It is also an opportunity to get to know the market directly, talk to tenants and examine what is the optimal living experience for them.
examine all the factors that affect demand
Many European countries, such as Germany or Spain, are still recovering from the subprime crisis that shook the world in 2008. This means that many citizens are looking for properties to rent, but the demand for purchase is low. This is probably the reason why it is now possible to purchase Real estate in Berlin at very reasonable prices and enter a market with the highest demand. In this type of market, we can enjoy a large number of potential tenants and a fairly wide margin when it comes to the rent we can charge.
What financing solutions will the destination country offer you?
Most of the time, real estate investments require financing. Therefore, in many cases, it is very possible that we can get a profitable and much more convenient financing solution precisely in the destination country. Many countries in the Union offer foreign investors particularly profitable programs, especially when the amount is intended for investments in Europe. It is time to find out what the countries’ banks The target offers, what are the different mortgage routes and whether real estate investments invite unique benefits.
What is the taxation policy in the destination country?
Another advantage in a country like Germany is that Israel shares a tax treaty with it. This is true for many European countries and it is important that we make sure before we enter into any investment that we can enjoy this benefit. A tax treaty will allow you to avoid double taxation and pay purchase tax to only one country. Many states will give you many other tax benefits that can save you capital throughout the years of holding your property. Getting to know the taxation policy up front will allow you to build a long-term path for your investment. This, in the end, is the key to prosperity over the years.