The influx of real estate investments abroad

The influx of real estate investments abroad

The investment channel in real estate outside Israel is gaining momentum and it gains the attention of experienced investors as well as parts of the public who are interested to invest in global real estate industry. Few recent factors may provide a more comprehensive explanation of the investment trend in overseas real estate.

Stability – European real estate markets and the US market are characterized by higher stability, which is manifested at several levels related to investment in real estate. For example, economic stability and consistent growth in the standard of living in Europe and the United States are generating demand for real estate and at the same time rise the value of existing assets, as well as growth of yield. This is combined with the formal stability – streamlined and stable legislation and regulations, enabling long-term planning, contrary to what you can see in the Israeli market, which is undergoing some form of instability due to reforms by the ministry of finance both on legislation and taxation regulation.

Ease and simplicity of work in the real estate market abroad – the stability of markets coupled with a standardized and accessible system that regulates real estate activity – both for entrepreneurs and for investors – significantly shortens the time required to start investing in real estate. Effective planning, transparency in regulations and the absence of bureaucratic restrictions, facilitate work processes, improve yields and reduce risks during real estate projects.

Diversification – The sheer size of international markets provides greater range of options for investing in real estate: The ability to diversify investments between different types of assets, markets with different characteristics and a wide range of companies operating in this market makes it easier for investors to make informed decisions and reduce investment risk. This is the result of the large number of players in the market, offering investors a wide range of business models and methods of operation in the industry – residential investment, individual assets or housing clusters, income producing properties, various types of commercial and industrial properties, and investment in less standard real estate assets such as logistics and communications as well as various agrarian areas.

An opportunity to start with less capital for initial investment than in Israel – The initial capital for investing in real estate in Israel is significantly higher, while investors may start with smaller capital to invest through entrepreneurial companies, real estate funds or to purchase low priced properties abroad. Diversified markets and amount of available assets allow the investors investor with an initial capital of $ 50,000 or $ 100,000, to purchase property and enjoy a long-term yield.

Better conditions for investing abroad – Israeli investors currently enjoy better and easier means of making investments outside of the country – regulatory information, taxation and detailed and rich information on the state of the markets and real estate assets are available from a variety of sources. In addition, companies and commercial entities enable customers to work via online trading platforms and offer customers in Israel a range of professional services that can assist managing assets abroad, provide services and carrying effortlessly out due diligence before buying.

And, of course, higher yields. Israelis who channel capital for overseas real estate investments are given the opportunity to see higher returns than similar investment in Israel. Compared to domestic yields, after taxes and expenses, investment in real estate abroad may yield higher rates of return over time. A similar trend can be discerned in the return on investment in real estate funds that show consistent growth while giving dividends over time, even on relatively low investment amounts.

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