{"id":13972,"date":"2017-09-12T03:25:00","date_gmt":"2017-09-12T07:25:00","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=13972"},"modified":"2020-09-21T01:51:40","modified_gmt":"2020-09-21T06:51:40","slug":"real-estate-good-choice-retirement-income-live-abroad","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/real-estate-good-choice-retirement-income-live-abroad\/","title":{"rendered":"Real Estate \u2013 Is it a Good Choice for Retirement Income if You Live Abroad?"},"content":{"rendered":"

Retiring abroad is something of a trend now<\/span><\/i>. According to CBS, about <\/span>400,000 American retirees are now living abroad<\/span><\/a> because they want to find a place they can afford to live in off their Social Security income. The situation is similar across the Atlantic; for example, about <\/span>72,000 British pensioners made Spain<\/span><\/a> their retirement place of choice for reasons such as a warmer climate. <\/span><\/p>\n

So, many people prefer to retire abroad and still collect Social Security benefits from their home country. But what if you have an opportunity to amass sufficient retirement savings to move somewhere warmer, should you invest in rental property? Could it be a reliable source of steady income?<\/span><\/p>\n

Let\u2019s answer this question.<\/span><\/p>\n

In general, international real estate<\/a> is one of the best investments you can ever make. Of course, the return depends on the country, the quality of housing, and the area, but you still can make a good profit in both the short and long term.<\/span><\/p>\n

So, let\u2019s suppose you live abroad and consider investing in rental properties to make sure you have enough money when you retire. If you possess a sufficient amount of funds to invest, it is highly recommended you do it.<\/span><\/p>\n

Why? There are several reasons.<\/span><\/p>\n

Reason #1: Strong, Guaranteed Income Every Month<\/b><\/p>\n

A well-located house or apartment can produce an extra $200 to $1,000 per month after expenses. The tenants are likely to pay you in cash, so that\u2019s a wonderful opportunity to generate a steady and a strong income on a consistent basis. Isn\u2019t that what a retired person needs?<\/span><\/p>\n

Reason #2: Rising Cost of Rent<\/b><\/p>\n

The cost of renting a house or an apartment rises in almost every country in the world. For example, <\/span>The Guardian reported<\/span><\/a> that the average rent outside London rose by 5.1 percent in 2016 and hit \u00a3764 a month, while tenants in the capital experienced a 7.7 percent increase to \u00a31,543.<\/span><\/p>\n

A similar situation is observed in the U.S. The median rent there grows at 3.3 percent annually, according to the <\/span>2016 Zillow Rent Index<\/span><\/a>. That\u2019s $1,381 per month.<\/span><\/p>\n

\"Real<\/p>\n

Image Credit: <\/span>Zillow<\/span><\/a><\/p>\n

Reason #3: A Low Risk of Depreciation<\/b><\/p>\n

Investing in real estate is much less risky compared to investing in stocks and bonds. \u201cRents are always going to go up; the value of your property is almost always going to go up and most of your costs are going to stay the same,\u201d suggest Andrew McLean, a former casino executive and now an author of <\/span>numerous books on investing in real estate<\/span><\/a>. <\/span><\/p>\n

According to McLean, the owner of the property may make a little in the beginning, but the income will climb over the years. The main reason for this is a low risk of depreciation. The data represented in the Zillow Rent Index also supports this: even if economic crisis presents some risks to rental appreciation, rent will keep increasing. <\/span><\/p>\n

What to Look for When Selecting a Home to Buy<\/b><\/p>\n

There are a number of factors you must consider before choosing to buy rental property, says McLean. According to him, the home should have enough land for future renovations because many tenants prefer to have a room for additions. Also, a large share of tenants are looking for single-family homes in a district with good schools. <\/span><\/p>\n

\u201cWhen I was working as a professor at a university abroad, most of the foreign students I provided <\/span>assignment help<\/span><\/a> to rented houses in a close proximity to the campus area,\u201d says Dina Wallbridge, an employee of an Australian university. <\/span><\/p>\n

Another important factor to consider is the proximity to your home. For example, it is not recommended to invest in rental property in areas distant from where you live. If you are a retired person who does not wish to travel long distances on an occasional basis to visit the property, it\u2019s better to purchase a place close to your house. <\/span><\/p>\n

So, let\u2019s recap the elements of a great purchase of rental property abroad:<\/span><\/p>\n