Is it worth investing in real estate abroad?

Allocating some capital to real estate investment is a very common practice, and is considered mostly by people who want to increase their income through steady returns or, in the case of a sale, through one-shot transactions.

However, the world of real estate is not all the same, and in countries such as Italy the market fluctuation does not always allow you to operate safely (and above all with the certainty of an adequate return on investment).

Real estate investment in Europe: a legacy of the past

Until the end of the last century, investing in real estate in Europe, net of normal segment fluctuations, was a sensible and, in most cases, lucrative choice.

However, the crisis of the 2000s and the subsequent ups and downs in European real estate have completely changed the game: investing in real estate in Europe today is no longer so attractive for a number of reasons.

•     Taxation – Despite the tax benefits on first homes, which tend to vary, the tax burden on second properties and on rents in general in Europe is particularly high. This means that the variable of fixed costs is an obstacle to an adequate return on investment, which must be taken into account.
•     Loss of value – It is estimated that European real estate has lost around 15% of its value over the last 25 years. Anyone who has invested in this sector in recent years is therefore unlikely to be able to protect their investment.
• The Tourism Factor – Recent studies confirm that in a highly volatile market like European real estate, the highest yielding areas that manage to partially offset the decrease in value are only those with a high tourist flow. This narrows the field substantially and means that a factor such as tourism, which, especially today, is no longer reliable, is decisive.

Investing in the foreign property market

Currently, the best real estate market to invest in is the US. Purchasing real estate in the USA is an objective advantage due to many factors, from taxes to income generation.

The potential of the US housing market

Certain specific areas of the USA today represent the best assessable real estate investment opportunity, especially – as proven by statistics – in the Miami area and Florida in general.

There are several reasons

•     US taxation of real estate transactions is lower than the European average
•     Real estate in Florida has had a constant coefficient of return with an upward trend for years, both in Rental (purchase and income) and sale transactions.
•     The US bureaucratic apparatus is much leaner than in Europe, which means operations that are much faster and much less complex in terms of implementation.
•     The real estate offer is broad and level, so with the help of a competent operator it is possible to identify different properties that can potentially be purchased, depending on the capital you intend to invest and the return on investment you wish to obtain.

Do you want to invest in a property in Florida? Here’s how to do it

Although there is no “magic recipe for wealth”, investing in the American real estate market can be an excellent opportunity, provided that you rely on an intermediary with undisputed professional expertise in the sector and knowledge of the area in which the transactions take place.

Remida Properties has been carrying out real estate transactions in the USA for years, supporting investors at all stages of the process.

Following the initial consultations, to determine the client’s needs, the budget to be allocated to the operation and the realisation that is to be achieved, Remida takes care of structuring the operation through the creation of a company, registered in the investor’s name, which will manage the investment in all its phases.

Setting up a company in the USA is an essential step, as it allows you to operate directly there, in full compliance with the regulations in force and enjoying the tax benefits provided for US companies in the real estate sector.

Once a decision has been made on the type of capitalisation required (buy to rent, buy to sell, etc), Remida Properties will make a selection of the best properties according to the purpose and investment available.

Following the acquisition, the property is renovated – if necessary – and moved to the final stage, return on investment (i.e. it is put up for sale or rent).

The return on the property can be managed independently or you can take advantage of Remida’s expertise. In all cases, the investor will be able to count on dedicated support and constant coaching at all stages of the operations.