What are the advantages of diversifying assets across borders and why has this investment model become a trend in recent years? Without a doubt, savvy investors are always on the lookout for low-risk opportunities that allow them to maximize their returns through disruptive investment vehicles. In the real estate sector in particular, investing in properties outside the country of origin is a methodology that has rapidly gained ground, mainly in European countries with good projections such as Spain.
What is cross border real estate investment?
Cross-border real estate investing means the purchase of properties in foreign countries by investors who are not residents of those countries. This strategy allows investors to access international real estate markets, diversify their portfolio and seek attractive yield opportunities in different regions of the world.
In general, this type of investment is carried out by a specialist in this type of investment, since prior knowledge of the regulations of each country is necessary in order to experience a frictionless and successful process.
Why the growing interest in cross-border investment in Europe by Latin American investors?
Factors such as public safety, the strong changes and lack of continuity with the different governments, as well as the facilities for investment in real estate abroad, have made Latin American investors look to new places to shelter their wealth. For example, according to one of Forbes’ most recent investigations, in the northern part of the American continent, it is known that 50% of total foreign investment in the United States is made by Latin Americans, and of that total, 28% comes from Mexico alone. Undoubtedly, due to its proximity, the United States is an attractive option for investing in real estate and other types of assets. Spain is where thousands of investors have found a gold mine not only to obtain attractive returns, but also to improve their quality of life. Businessmen such as Carlos Slim and Diez Morado are just some of the most prominent Mexican personalities with assets in Spain.
Madrid: an undiscovered real estate treasure in Spain
Undoubtedly, Madrid is a magnet for real estate investment in Spain due to a combination of cultural, economic and legal factors. First, the cultural affinity between Mexico and Madrid creates a natural attraction for Mexican investors, who find in the Spanish capital a sense of home thanks to cultural similarities and shared traditions. In addition, the perception of security and freedom in Madrid is a crucial factor, allowing investors to enjoy a wide range of activities within a stable legal and civic environment.
From an economic standpoint, Madrid offers relatively affordable real estate prices compared to other European capitals, which increases the potential for return on investment. In addition, programs such as the Golden Visa program (which is still in place) offer foreign investors the opportunity to obtain residency in Spain in exchange for a property investment, which attracts those seeking a base in Europe.
As for the variety of investment options, Madrid offers diverse alternatives adapted to different levels of risk. From the purchase of properties in low-value areas for subsequent renovation and sale with high potential profits, to the acquisition of homes in high-value areas with a constant demand, there are options for all investor profiles.
The satisfaction of foreign investors in Madrid is evident, highlighting their role as ambassadors by recommending the city and its real estate services to others. A trend that has become very evident during the last couple of years mainly in social networks and in closed and exclusive communities.
Madrid stands out as a real estate investment destination due to its unique combination of cultural, economic and legal factors that offer a favorable environment for national and international investors.
What are the opportunities for investing in Spain from LATAM?
Spain is one of the most attractive destinations for real estate investment in Europe. With an enviable climate most of the year, a rich history and a solid infrastructure, the country offers a wide range of investment opportunities for Latin American investors, the country offers a wide range of investment opportunities for Latin American investors.
Investment modalities in the Spanish market:
- Flipping: This strategy involves buying properties with the objective of renovating them and selling them quickly at a higher price. While it can generate substantial gains in a short period of time, it also carries risks associated with market volatility and renovation costs.
- Turnkey: In this approach, investors acquire fully renovated and ready-to-rent properties. This approach offers a stable source of rental income, but may require a higher initial investment compared to other strategies.
- Real estate investment funds: Real estate investment funds allow investors to participate in the real estate market through collective investment vehicles. These funds offer instant diversification and professional management, but may have minimum investment requirements and associated costs.
At Nolab we have a team of highly experienced specialists in Cross Border real estate investments in Europe,contact us and get all the information you need right away!
