Best Ways to Grow Your Real Estate Investment Portfolio in an Uncertain Economy

No matter how you feel about the economy, you probably want to make investment choices that benefit you financially and support your income.

Real estate remains a favourite when it comes to building a sustainable investment portfolio. Why? The answer is simple. Real estate is a tangible asset that will always be in demand. People need housing, so 70% of rental properties are owned by individual investors. Don’t want to buy a UK rental? Here are unexpected ways to grow your real estate investment portfolio in an uncertain economy so you’ll be more prepared than ever if you need to make some changes in the future.

Look for Countries with More Beneficial Investment Systems

If you’re looking to grow your real estate investment portfolio in an uncertain economy, consider countries with more beneficial investment systems. For example, one of the best is a self-managed super fund (SMSF) in Australia. This type of account can be used for both property and shares and offers potential tax savings. It’s also easy to set up and administer, with no minimum investment amount or ongoing administration costs. You can also contact a professional accountant, such as Mobbs and Company, for assistance with self-managed superannuation taxes.

Unfortunately, SMSF investment potential is not accessible to non-residents. However, if you are in the process of looking for new opportunities outside the UK, moving to Australia could be just the breath of fresh taxing air you need!

Consider Overseas Mortgage Options

Many Britons are looking for ways to grow their investment portfolio as the cost of living continues to rise. One option for people who want to buy a second property with a specialist UK overseas mortgage. An overseas mortgage will typically require a 20 to 25% down payment upfront and must be paid back within the agreed term. This can give you the opportunity to invest your money elsewhere while still having a property on foreign soil that’s appreciating in value.

Targeting the EU territory, a holiday rental in France, Spain, Italy, or Portugal can prove profitable in many ways. Firstly, you might be pleased to find that some properties will be more affordable abroad than in the UK. Additionally, some locations are also encouraging investors to come and create attractive prices and policies.

Airbnb A Room in Your Property

It might seem like a crazy idea, but renting out a room in your primary property on Airbnb can be a great way of generating extra income. You could even free up budget to prepare a room for Airbnb by refinancing your existing mortgage, which can create sufficient financial breathing room. And now that the real estate market is getting more uncertain by the day what better time than now to start diversifying your investment portfolio without actually increasing your asset risks? Here are some tips for making sure everything goes smoothly:

  • Be mindful of tax laws. You will need to declare your capital gains.
  • Make sure that you have insurance coverage before renting out your place on Airbnb.
  • Create a separate and self-sufficient entrance and room(s) for your guests, including bedroom, bathroom, and a small kitchenette area.

Do you need to buy a typical UK property to create a profitable real estate portfolio? Of course, not. You can make your investment an integral part of your career relocation and even consider overseas opportunities by moving or buying abroad. Besides, even with a limited budget, you can leverage your primary home as an investment strategy via Airbnb room rental.

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