7 Reasons You Should Buy a House Overseas

What would make you purchase a home in another country? Perhaps you were inspired by the $1 Italian villas that made headlines, or the lavish lifestyle that you could afford in Costa Rica and other tropical destinations.

No matter what piqued your interest in buying abroad, the reality is that it might not be a far-fetched dream. Buying a house overseas can be more affordable than you think and may allow you to live in a way that you could not in the United States.

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Here are seven reasons you may want to consider buying a house overseas.

Affordability

Buying a house abroad may have once felt like a pipe dream that was only for the rich and famous, but today, there are many destinations that offer affordable properties. Whether you are looking to retire overseas or just want a vacation home, the options are endless.

As noted by Forbes, some of the most reasonable places to live are Costa Rica, Portugal, Mexico, and Panama. Each of these offers coastal living that rivals nearly any port in the U.S.

You can join a growing number of expatriates, or expats, who have relocated to more cost-effective regions of the world. It is always a good idea to tap into these expat communities before making a permanent move so that you know what you are getting yourself into.

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Tax Incentives

Another reason to invest in a house abroad is that there may be considerable tax advantages. According to City National Bank, property taxes are lower in many other countries than in the U.S.

It is important, however, to consult with an attorney about any tax implications when purchasing a property overseas. As explained in the article, you may need to take into account transfer tax or stamp duty.

Rentability

If you do buy a home in a destination country, you might be able to make significant income by renting it out to vacationers.

Some properties can fetch a considerable amount of rental income simply because of where they are located. It is essential that you work with a local property management company to ensure that your home is being maintained, particularly if you are not living nearby, to check on your investment.

Cost of Living

Not only is housing more affordable in some countries outside the United States, but the cost of living is generally more economical.

As reported by Investment Visa, “Many EU countries have an affordable cost of living, offering a high quality of life.”

You can save even more by opting for a local spot that is not a traditional tourist destination or near a trendy area.

Change of Pace

Buying a home abroad can also help you indulge in a change of pace. Many people can get caught up in the rat race of life, working well beyond their 9-to-5 job in an effort to keep up with ever-increasing costs.

Changing scenery to a more peaceful location can help you adopt a more relaxed lifestyle and may just alter how you think about needs versus wants.

Diversification

Another important benefit of purchasing a property overseas is that it may help you diversify your portfolio.

An article written for the international services division of HSBC explained, “An internationally diversified portfolio can be one of the biggest perks of buying overseas property.”

Having an investment property abroad can help ensure that if the U.S. markets take a downturn, you still have an asset that may be protected. Economic instability is not always global. It can be regional, meaning that having your money spread across other areas may help despite hardships in one area.

Residency Benefits

Finally, Investment Visa advocated securing a property abroad to take advantage of citizenship and residency benefits.

The company said buying overseas may give you certain perks such as “access to world-class healthcare, visa-free travel, the opportunity for your children to engage in world-renown schools and universities, and safe environments.”

Other countries often do not have the strict requirements for citizenship and residency that the U.S. has, meaning a path to these opportunities is easier than you might realize.

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This article originally appeared on GOBankingRates.com: 7 Reasons You Should Buy a House Overseas