Commercial Real Estate for Millionaires
What are the best places for millionaires to invest in commercial real estate?
When you have a lot of money, but¬†the global economy is turbulent, it’s a good idea to store money in property. Commercial real estate investment is a great idea. Not only is the income from leasing out the property high, but if you choose the right place, the value of the property will rise substantially against inflation.¬†When it comes to commercial real estate there’s several factors you need to consider, not least how strong the local economy is. Here are some of the countries where millionaires invest in real estate.
Australia is still a fast growing country. The Australian Dollar has also taken something of a nose-dive recently, which has made real estate in Australia very attractive to those whose wealth is in other currencies that are stronger.¬†This bearish trend with the Australian Dollar will turn around; because the Australian economy is very strong.¬†
The retail sector is particularly strong; so purchasing shops to let is a great idea. Particularly as Australia’s cities are growing all the time. It’s still a very young country.¬†
Large state capitals like Perth and Sydney are a great idea, but also smaller emerging cities like Hobart and The Gold Coast.¬†
Monaco has long been a favourite with the world’s elite. Not only is it an absolutely fantastic place to live,¬†but the taxes are very low. There’s no personal tax (except for French nationals). Monaco is run on only property taxes, V.A.T and social security contributions.¬†
Corporation tax (for money earned within Monaco) is also non-existent. This means doing business in the principality is extremely attractive. So commercial property is very much sought after by the extremely rich. Also, with so many of the super-rich living in the principality; even small boutique shops can earn a great deal of money. So commercial rent is high.¬†
Singapore’s corporation tax rates have been slashed periodically since 1997. And now stands at 17%. Other taxes also make Singapore ideal for business. It’s a very low tax country.¬†
But low taxes is not the only reason that commercial property is an attractive purchase in Singapore. It’s more to do with the country being strategically located with the rest of Asia, but with strong Anglo-Saxon links with Britain, Australia, New Zealand and USA due to its status as a former British colony. This makes it an ideal international business hub. There’s also an amazing optimism around the place. Singapore is a country very much looking to the future, and you can feel it as you walk through its almost-space-age streets.¬†
Singapore’s locals are also affluent, with a high GDP per head. They have a lot of disposable income, even when compared with other first-world nations. So retail properties are very much desired and demand high rental fees.¬†
There are many other countries where wealthy individuals are investing¬†
to preserve their wealth and earn an income by investing in commercial¬†
real estate, and you can find them by doing a little research beforehand. Before actually investing your money, you should check a number of factors to ensure profitability.¬†
- The country is conducive to business. Meaning it’s a low tax country with a thriving local economy.¬†
- ¬†The country is politically stable. Where war and high-tax, anti-business regimes are a low probability.
- The properties in the country have a good chance of increasing in¬†value, or at least not depreciating against the rate of inflation.¬†
- You have a good real estate agent and a local property lawyer, who are¬†working to provide you the best value for your money, and to ensure¬†everything is above board.
- And finally, when buying commercial properties; look for countries where the money earned through rental income can exceed the initial cost of the asset in a relatively short period of time.