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A diversified investment portfolio is the tried and tested mantra of professional investment and wealth management specialists everywhere. But one area of investment strategy that is sometimes overlooked, is that of investing in international property.
Investing in property in one of a growing number of attractive international markets can add significant value to one’s investment strategy and portfolio. This is according to Anthony Palmer of Cape Town-based Carrick Wealth, leaders in wealth and capital management.
Diversifying one’s portfolio lowers exposure to investment risk by spreading it across different asset classes, and in different jurisdictions, currencies and industries. These asset classes tend to perform differently from each other under different market conditions or in different jurisdictions. The main asset classes are equities (stocks), fixed income (bonds), cash equivalents (money market instruments), property, infrastructure, commodities and private equity.
The attractiveness of international property
For most people conventional wisdom has always held that it’s good to invest in property. But investing offshore in international property goes far beyond just that. It unlocks significant opportunities in terms of investment benefits, risk exposure, returns and perhaps most importantly, the level of reliability of such investments because they are often less impacted by prevailing economic forces and political conditions. This of course depends on the market in which one invests, which is why it’s always best to solicit the services and advice of an expert in the field.
The UK, for example, has always been considered a stable real estate market for international property investors. But in recent years certain European countries have also excelled in the real estate opportunities they offer, as well as many other countries across the globe.
Depending on one’s goal with investing in international property – for personal use or purely for investment returns – it can be utilised for generating income and capital growth, tax planning, education funding and retirement planning.
If the focus is on investment returns, it should be viewed as a long-term investment. In this case the primary determinants will be factors such as capital appreciation, the property’s marketability, rental income, maintenances costs, management fees and combining quality builds with excellent local market potential.
Another key consideration would be to invest in property in cities with strong local economic performance. If you are purchasing such property with a view to letting it as an income generator, its location should be attractive to potential tenants. It should be close to good public transport and infrastructure, commercial hubs, amenities, and universities or colleges, allowing tenants to easily and conveniently commute to places of work and study, or to shops and businesses.
Let specialists alleviate red tape and stress
As with all investments across asset classes, investors should always seek the services of a professional advisory firm, which will be necessary when analysing and understanding the primary determinants.
Purchasing, financing and managing an international property portfolio may often seem like a daunting task full of potential pitfalls, red tape and stress. To overcome this when investing across jurisdictions and in different markets with which the investor is often unfamiliar, it therefore makes sense to engage the services of a property investment consultant who is qualified, experienced and has a proven track record.
Not only will this alleviate the red tape, paper work and stress involved, but it will ensure that the best investment decisions are made that will help you grow your wealth safely and securely. A specialist adviser will help you to identify and access the best property investment opportunities around the world, from sourcing to purchasing, management and beyond. The extensive experience and services offered by international property investment advisers goes far above and beyond the traditional functions of a broker or real estate agent.
As an investment advisory firm Carrick and its global partner network provides end-to-end international property investment services: from sourcing and identifying high-quality property opportunities, to obtaining all relevant information; doing initial analysis; securing international mortgages and financing; providing assistance with international currency transactions; offering support with process requirements; providing ongoing management; providing tax planning; setting up structures to hold the property; and finally, securing the desired timing and level of returns for our clients from high-quality property developments around the world.
Globally, property mortgaging models are based on securing the property asset against itself, a powerful financial leveraging tool not available in other asset classes. Through our strong and exclusive global partner’s network, Carrick will connect investors with leading international finance providers for the most competitive mortgages in key markets, whether you are purchasing or refinancing an existing property.
Together with Carrick’s carefully selected global partners, we have sound experience in unlocking the investment potential of the world’s real estate markets and making international property investment a successful part of our clients’ wealth strategies. If you are interested in diversifying your portfolio and investing in international property, and require considered, expert investment advice and access to high-quality investment opportunities, contact Carrick today at [email protected]
- Carrick Wealth is a registered South African financial services provider specialising in South African and international financial planning. Carrick is also licensed in Zimbabwe, Botswana and Malawi, and holds three global licences in Mauritius. Carrick at all times maintains its independence with regard to product providers and asset managers, providing bespoke risk assessment, financial planning and other services to high net worth individuals (HNWI). Through our own qualified and experienced wealth specialists, as well as through partnerships with industry leaders in the fields of foreign exchange, tax, international property, offshore bank accounts, trusts, wills and estate planning, Carrick is able to provide the highest levels of service for your financial planning and investment requirements, both offshore and domestic. This communication is intended solely for information purposes for the use of designated recipients and is not an offer, recommendation or solicitation to transact. While it is based on information available to the public and from sources believed to be reliable, Carrick makes no representation that it is accurate or complete or that any returns indicated will be achieved.