Whatever your interests or goals are, traveling can help you become a better real estate investor. Here’s how.
If you’ve ever been interested in real estate investing, you should know that traveling regularly can make you a better-informed investor. Real estate investing is used in a variety of ways; some people focus on rental properties so they can collect rent from tenants and generate monthly revenue, while others focus on long-term investments or property flipping. Some focus on commercial real estate, while others prefer residential.
Whatever your interests or goals are, traveling can help you become a better real estate investor. Here’s how.
Exposure to different neighborhoods
First and foremost, you’ll get exposure to different types of neighborhoods all around the world. One of the most important factors for your success as a real estate investor is being able to sniff out the best neighborhoods; good neighborhoods tend to offer lots of value to the people living there. They offer things like low crime rates, great school districts, and amenities that all homeowners enjoy. They also offer homes at relatively low prices; you can enter a neighborhood as it begins to grow and develop, then capitalize on the rise in property values that follows.
However, the qualities that make a neighborhood “good” are different in the eyes of different property owners, and overseas, you’ll find very different clusters of neighborhoods that you can find in the states. In time, you’ll learn more about the nature of property value, and you’ll develop a keener eye for up-and-coming neighborhoods in your local area.
Introduction to new investing opportunities
Of course, venturing to other countries (or even other states) can also introduce you to new investing opportunities. You’ll see a wide variety of available properties, some of which will inevitably be listed for sale. And some of those listed properties will present you with a valuable opportunity; it may be the perfect property for generating monthly rental income, or it may reside in a neighborhood with a ton of long-term potential.
If you’re planning on living elsewhere, you can hire a property management company to handle most of the day-to-day responsibilities. They’ll take care of things like collecting rent, handling repairs, and dealing with evictions (if you ever need to pursue one). In exchange, you’ll only have to pay a small percentage of your gross rental income.
Investing in many different neighborhoods in many different locations is a great strategy to protect you from local market fluctuations and volatility. If one neighborhood declines in value, or if an entire country experiences economic hardship, you’ll have a balanced portfolio that can help you weather the storm.
Tax deductions
You should also be aware that traveling for real estate purposes could be used as a tax deduction. For example, let’s say you own a dedicated real estate investing business and you’re specifically looking for properties in other areas; to find them, you have to visit the area and research properties in person. In this scenario, many of the expenses you face—including airfare and accommodations—may be tax deductible.
Stress relief and relaxation
If you’re a frequent traveler, you’re familiar with the concept that travel can help you relax and relieve stress. Being a property investor can be stressful; you’ll need to carefully manage your finances, deal with maintenance and repairs, and sometimes contend with legal issues. Over time, it can interfere with your mental and physical health. Taking occasional time to visit new places and relax can refresh your perspective, and help you return to your property investing goals with a healthier mind state.
Excuses for future travel
If you love the idea of traveling, you should know that investing in property in another area gives you the perfect excuse to visit that area in the future. If you’re not concerned with ongoing cash flow, you could invest in a vacation property in another country. If you purchase a rental property there, you’ll have a good reason to visit whenever a tenant leaves or whenever a repair needs made.
Obviously, this shouldn’t be your only reason for buying property in another area; otherwise, this would turn into an expensive habit fast.
Making even better use of your travels
If you’re traveling regularly, seeing new neighborhoods and looking for valuable properties in which to invest, you can generate more revenue for property investing by monetizing those travels. For example, you could start a travel blog and write about the valuable investing opportunities you see in each area; if you can attract a big enough audience, you can monetize your traffic with the help of advertising, affiliate links, and other tactics.
In any case, traveling regularly can improve your prospects as a property investor. Go out of your way to see the world, and you’ll walk away with much more knowledge and experience.
