This increase in interest is due to several factors, including the appreciation of capital, high rental yields in comparison to India, tax-free expenditures, the availability of completely freehold properties, first-rate infrastructure, appreciation of the rupee, and advantageous immigration laws. Purchasing properties in Dubai is also more about the satisfaction of being a property owner in a major world city than it is about investing.
Plan B for HNIs and UHNIs includes the current pattern of Indians buying up real estate around the world. An open, globalized, networked world free from national borders is what India's rising class of wealthy families aspires to.
Along with the benefits of regional and currency diversification, international diversification lowers the overall risk of the portfolio. In addition to funds that invest across many locations and provide access to a variety of real estate domains such as commercial, residential, parcels of land, warehouses, etc., investors should also take into account possibilities such as REITs and InvITs when making real estate investments.
After selecting the portion of their portfolio to be allocated to international real estate, investors should consider the demand and supply dynamics of the area, the likelihood of profits, and the trajectory of interest rates, which will eventually support real estate due to their gradual decline.
When making an overseas real estate investment, investors want to find out if their wealth administration has local relationships in other markets. Investors can benefit from a partnership with a local partner in the future in several ways, including advice, execution, monitoring, and reselling.
This is because, once purchased, the property requires a lot of hand-holding for upkeep, and when it comes time to sell, elements like tax rules, impact costs, and exit costs become crucial.
Additionally, local teams would be rather knowledgeable about how to lease out the business space if it were a commercial property. All of the financial and legislative due diligence needed to acquire, maintain, and resell the property will, in essence, be completed by the local partner.
In summary, purchasing real estate overseas is a wise choice, particularly for those who wish to have a backup plan—Plan B—that they can always turn into Plan A. When considering alternate residency or citizenship, HNIs and UHNIs most frequently choose the USA, the nation of Portugal, Canada as well, and the UK.
Therefore, investors who are interested in purchasing homes abroad should work with a wealth advisor. With their insightful counsel and familiarity with local markets, advisors can streamline and expedite the investing process, enabling clients to meet their objectives for global mobility.
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