International Short-term Rental Calculator
Maximize Your Returns with Expat Money’s International Short-term Rental Calculator
WHY REAL ESTATE?
Real estate is one of the strongest asset classes in the world, outcompeting others like stocks, bonds and options. It has stood the test of time, acting as a solid hedge against inflation and offering stability in times of uncertainty.
In today’s world, international real estate has become even more important as the Western real estate market faces challenges like stringent regulations, burdensome taxation and even threats of confiscation. At Expat Money, we believe that international real estate is the future and the best choice for you to protect and multiply your wealth.
That’s why we have designed this International Short-term Rental Calculator to showcase what your real estate returns will be, based upon the country of your choice and all the costs you need to take into account.
Why Invest Internationally?
With property prices going up in legacy Western countries like Canada and the US, investing abroad offers cheaper, more accessible options to diversify your portfolio and financial returns.
Here are four reasons why investing in international real estate is an excellent choice:
Diversification
The saying goes, “Don’t put your eggs in one basket.” Yet, many stick to their home countries for everything and face the consequences of events like the 2007–2008 financial crisis. Going all-in for a single country can decimate the value of your investments, but if you invest internationally, you’re not relying on a single country’s financial future.
Access to Emerging Markets
Emerging markets are characterized by high growth potential. In a matter of years, your investments can drastically increase in value. Think of timber plantations in Paraguay or beachfront properties in Brazil. Emerging economies offer substantial returns and untapped potential that many investors overlook.
Potential for Lower Property Prices
When you look beyond the confines of your home country, it’s easy to find lower property prices compared to domestic markets. International real estate provides entry points favourable for investors who want good value for their money. For under $300,000 USD, in countries like Uruguay, you can purchase a beautiful 130-square-meter house with four bedrooms, four bathrooms, and a parking space on top of other amenities.
Tap into Less Saturated Markets
While thousands of investors want to compete in domestic markets, others are savvy enough to depart and find better deals outside their place of birth. In less saturated markets, your investment will be more affordable and of higher quality.
Discover Expat Money’s International Short-term Rental Calculator
At Expat Money, we believe transparency is vital, so we want to show you all that purchasing property overseas entails. Our International free Short-term Rental Calculator provides a thorough breakdown of all the costs, allowing you to see what you’d put into your pockets.
- Occupancy rate: explore your expected returns by customizing the occupancy rate to reflect real-world scenarios;
- Cost per Night: choose the price of a night in your property;
- Total Revenue: see the impact of varying occupancy rates and nightly costs on your returns.
Then, we find the “fixed fees” section, allowing you to include all the expenses:
- Purchase Price: input the actual cost of your investment;
- Closing Costs: include the various fees and expenses associated with the final stages of the transaction;
- Furniture, Appliance, and Electronics Packages: customize the amount of money you would spend to renovate the house;
- Air-Conditioning Units: enter the costs for essential property amenities.
The “Monthly Expenses” section comes next:
- HOA/Condo Fees: costs to maintain amenities like a pool or shared areas;
- Internet, Water & Gas, Electricity: monthly expenses handled by the owner's side on a short-term rental basis;
- Property Management Percent: input the cost of property management services.
Finally, we encounter the “Annual Expenses” section:
- Property taxes: depending on the country of your choice, the calculator will show you the money you would pay in property taxes;
- Property Insurance: otherwise known as homeowner's insurance, used to protect your property.
After introducing this data, the calculator computes the sum of fixed fees and annual expenses and then shows you the net profit (total revenue – total costs).
As you can see, this is an all-encompassing tool. We want you to see it all, including the costs that come with the property of your choice and the taxes you would pay according to the country you choose to purchase property in.
Getting actual information on how much you would earn investing in international real estate is simple with our calculator.
Examples of Attractive Countries
So now that you have seen international real estate's potential, what countries should you consider? We have studied jurisdictions all over the world, and after extensive research, we concluded that the following countries are the best for our clients:
Panama
Panama is an excellent place to protect and multiply your wealth for various reasons, including its enticing tax incentives. When considering real estate, taxes are extremely low, with a top rate of 1% for properties worth $500,001 USD or more. Also, the country boasts a stable political environment and steady economic growth, offering peace of mind to investors.
Brazil
As a vast country, Brazil’s real estate opportunities are numerous. Whether you want a beachfront property or a mountain retreat, Brazil has it all for pennies on the dollar. It is the largest economy in Latin America and a robust economy with lots of potential whether you want to purchase an investment property or even your own house.
Nicaragua
Nicaragua is an underrated country, so it should definitely be on your radar. With cheap property prices, low taxes, and great value for money, you can find big houses, apartments, beachfront, and lakeside properties.
Paraguay
Paraguay boasts a low cost of living and investor-friendly policies, creating an environment for investors looking for growth and affordability. Whether you want a countryside retreat or a modern apartment with multiple bedrooms, Paraguay has you covered.
Colombia
As a country with a low cost of living and diverse landscapes, you can easily find a property to your liking. From beachfront properties to mountain retreats and everything in between, Colombia has options for every investor. Also, its proximity to the equator makes it an appealing place for year-round pleasant weather.
Turkey
Turkey’s strategic location, rich culture and vastness make it a tempting country in which to invest. The country’s main metropolis, Istanbul, and the various cities in the interior and the coast offer choices for every investor. The country attracts multiple tourists every year, so you can expect high returns.
Portugal
Located in Southern Europe, Portugal’s good weather and gastronomy attract visitors every single year. Therefore, the potential for high returns is immense. Also, its property prices are among the lowest in the EU, allowing you to acquire large houses for a fraction of the price you would get in other countries.
Uruguay
Uruguay is a hidden gem with a small population of around 3.5 million people, lots of greenery and high-quality, affordable real estate. You would be surprised at the price points of property, even in coastal areas. Plus, the country boasts a favourable tax regime, a stable political environment and safety, providing investors with tranquillity.
Relevant Posts
Conclusion
International real estate stands out as a strong hedge against inflation and the uncertainty we’re witnessing in other countries. With our calculator, you will be able to break down the costs and returns to make informed decisions before investing abroad. Use Expat Money’s International Short-term Rental Calculator and find out today what your returns would be.