Why buy an apartment abroad?

Maybe you are a real estate investor and you are looking for new ways to expand your investment strategy. You don't want to limit yourself to a single market, but want to explore emerging cities where high returns can still be found.

Often, real estate investors who do not have international experience find that one of the risks to buying an apartment abroad is the lack of knowledge of the language, the lack of legal certainty and, of course, those doubts and uncertainty that can arise when we are looking for new opportunities.

Let us show you some reasons why, despite all this, it is worth buying a home abroad if you choose excellent locations, such as the Dominican Republic, a country with which you share language, has a large influx of tourists and is the main center of interest in the Caribbean for real estate investments in the Spanish-speaking world.

Reasons to buy an apartment abroad

There are multiple reasons why as an investor you should not be afraid to expand your investments to other markets. The sooner you do it, in fact, the better to diversify your income and avoid the risks of being subject to a single real estate market, which may have serious structural problems that prevent you from growing.

Tax savings

Don't just look at the price of the property, the size, or the publication. Look at the taxes, which can substantially increase the cost of your investment. When real estate taxes are high, we indirectly think that the price of the house is more expensive, but in reality the payment of taxes does not represent any benefit for the investor.

There are real estate markets abroad that would allow you to execute the same type of operation, paying much less tax, or even an exemption for 15 years, if the property meets certain characteristics, as is the case of the Dominican Republic with the Confotur Law.

2. You need to diversify your real estate portfolio.

Owning real estate in a single country subjects you to the legal vagaries and unique characteristics of the real estate market. If that scenario is also prone to increased regulations on the rental market, or taxes are frequently increased, the lack of predictability puts your long-term investments at risk.

Lack of fun can be a problem if you find yourself in a market with a lack of legal certainty. Different situations may arise that lead you to see your profitability diminished and not achieve the objectives you had planned at the beginning.

3. You wish to have a second residence abroad

Perhaps you are buying an apartment abroad because you would like to have a second home. You want to buy an apartment as a second home, which is in a vacation location, where you can retreat to rest, but still provide you with certain amenities, and is relatively close to other places you might travel to.

Dominican Republic is the perfect place for investors of this profile, where you can also easily obtain residency by investment. Not only because it is a short flight away from the USA and Latin America, but also because it is a country that receives more than 11 million tourists a year, and has excellent beaches to enjoy an excellent experience.

4. You don't want to assume the opportunity costs of investing in a single market.

If the market in which you have invested in housing is expensive, or presents serious difficulties in accessing properties at an attractive price, you are assuming opportunity costs that you may not be aware of. Because the same amount you invest in a property in the United States or Spain would give you access to apartments of much higher quality, with more affordable prices, and a greater potential for long-term profitability.

This would allow you to grow faster and see results sooner, as you would enter the luxury apartment market, a much more stable type of investment in the long term, whereas the other way can often be more difficult to find buyers, or you may find yourself in distressed situations if a real estate crisis occurs.

Dominican Republic, the ideal destination for real estate investments abroad

Thinking of buying your first home abroad? Whether you are a professional investor, or simply want to enjoy a home of your own in the Caribbean, the Dominican market represents just what you might be looking for right now.

A Spanish-speaking market, with legal security and a continuous flow of tourists throughout the year thanks to its warm climate, which can be a perfect option for tourist rentals. We are talking about a market where you can find apartments with temporary tax exemption, in the heart of Punta Cana, and with yields that can exceed 10 or even 15% per year.

Would you like to receive more information? Are you an investor looking for opportunities abroad? Talk to us here.