How can I profitably invest €150,000 in real estate abroad?

Investments in Turkey

In our company, which focuses on protecting the interests of investors in Turkey, especially in the real estate sector, the issue of investments is particularly relevant. If we receive a request for an amount of €150,000, we can offer two different options, each with its own characteristics and advantages.

First option: purchasing at the initial stage of construction

The first approach involves purchasing a property at the initial construction stage in a quality residential complex, with the intention of reselling it in 18-24 months. In the Alanya area, this strategy can yield a profit of around 20-25%.

• By investing €150,000 and waiting for the construction to be completed, one can expect an income exceeding €35,000.
• This will amount to approximately €1560 per month.
• It is important to mention that all profits will only be available after the sale of the property.

Second option: passive income from rental.

The second option is of interest to those who prefer to receive a stable income immediately. In this case, we are talking about passive income from rental properties. With this budget, we can offer clients the purchase of one apartment in a prestigious complex in Alanya.

• We have options in our portfolio that offer a guaranteed income of 10% per year for a term of up to three years, with the possibility of extension.
• This will provide stable income at the level of €1250 per month.
• Although this amount is slightly below the expected €1500, in this case, the guarantees are clearer and more reliable.

The possibility of acquiring multiple properties

With a budget of €150,000, it is also possible to purchase two or three liquid real estate properties that can be quickly sold if necessary. These are apartments located in good areas, close to the sea and in complexes with developed infrastructure, such as swimming pools.

• They can also be rented out.
• In the summer, the income from such properties can reach around €2000.
• In the off-season, this figure can be around €1000 per month.

Investments in Spain

Now let's turn our attention to Spain. Alexander Dashevsky, representing the company Espana Tour, points out that our clients are quite often interested in investments ranging from €100,000 to €150,000.

Comparison of rental income

What opportunities are opening up for them and what profits can they expect? It is important to note that many clients want to compare the potential rental income from real estate with what is offered in their home countries, such as Russia, Ukraine, or Belarus.

• In large cities, incomes can reach 10% or more in foreign currency.
• However, the instability of exchange rates makes these investments less attractive for long-term investments, especially when it comes to transferring funds in euros.

The situation in the market before the crisis

Before the crisis, we managed our clients' real estate, achieving gross return rates in the range of 10-12%.

• From these amounts, expenses for maintaining the facilities, advertising, and taxes were deducted, which together could account for 48% to 50% of the total income.
• As a result, property owners received about 5% net profit.
• To achieve a monthly income of around €1500, it was necessary to invest at least €300,000.

Current situation in the market

Today, the market situation has undergone significant changes. The number of offers for the sale of apartments has increased, but there is a clear shortage of rental listings for houses or townhouses.

Conclusion

In conclusion, it is important to emphasize that wisely chosen real estate investments can provide stable income and security if approached thoughtfully and carefully.

Investing in townhouses in Spain

In the current realities, I suggest my clients consider the possibility of investing in townhouses with a budget in the range of €150,000 to €180,000. For this amount, one can purchase a nearly new home in a pleasant area in Spain. Such properties can provide a return of around5-6%clean.

Most clients prefer to take out a mortgage with Spanish financial institutions, where interest rates fluctuate within3-4%per year. Rental income often fully covers the loan obligations. For example, if you invest50%Use your own funds and take the remaining half as a loan; the interest payments can be covered by rental income.

Short-term rental before the pandemic

Before the pandemic, one could expect income from short-term rentals in the resorts of Spain to be within10-12%However, it is important to have up-to-date information on investment returns, immigration, and purchasing real estate abroad, not taking into account additional expenses.

In this context, it is useful to turn to Italian experts, such as Yulia Titova from Rentsale, who claims that in Italy, as in other European countries, such high levels of investment returns are...10%missing.

Average performance indicators

The typical return is around7-8%before tax obligations. When it comes to net returns, it is unlikely to achieve more than3%after paying all taxes and related expenses.

Prospects for real estate rental

From a theoretical standpoint, in Europe, one can expect a yield of around10%on investments in rental property that was purchased using a loan. However, if this amount covers the loan expenses, that would already be a good result.

In Spain, you can make a deposit.50%the cost of the apartment with my own funds, and take the second half as a loan, while the rental income will be used to cover the interest. In aboutten yearsAfter fully paying off the mortgage, the investments can completely pay off, which will open new horizons for generating income from renting or selling the property.

Difficulties in Italy

In Italy, this strategy doesn't work as effectively because it's extremely difficult for foreigners to obtain a mortgage. At the European level, in countries like Portugal and others, high levels of returns are also not a common practice.

• Average yieldin Portugal is about4-6%before tax payment.
• After taxes, the net yield varies within the range of3-4%.
• More favorable conditions may be offered to residents of the country.
• If this is the owner's only source of income, they may be able to avoid tax obligations.

Rental of residential and commercial real estate

Currently, residential property valued at around €150,000 can be rented for an amount starting from€750to€850per month. Commercial real estate showed a more impressive return during the pre-crisis period.

Nevertheless, predicting the future for the commercial real estate sector is quite challenging. Currently, the country is under strict lockdown, many commercial enterprises have suspended their operations, and there is a risk that some of them may not reopen, especially offices that have shifted to remote work.

Here’s what you can buy abroad for 150,000 euros. First, let’s consider an interesting option in Greece: for 140,000 €, you can become the owner of a cozy maisonette in picturesque Rafina.

This apartment has an area of 55 square meters and is located on the third floor. It includes:

• One room for sleeping;
• Spacious living room with kitchen area;
• Bathroom.

The panoramic windows offer stunning views of the sea, which adds special value to this property. Inside, there isfireplaceandair conditionerAlso, all the furniture will remain after the sale. There is an elevator in the building, and it is included in the price.parking spacethat significantly simplifies life.

Land plot in Greece

Here is a plot of land in Cassandra, Greece, priced at €140,000. The area of this parcel reaches2000 square metersthat allows for the construction of a building with an area of up to200 square metersThis plot offers a chance to bring your architectural visions to life on the magnificent Greek coast.

Apartment in Montenegro

If you are interested in Montenegro, we offer you an apartment in Budva, priced at €130,000. This is a new two-level property with a total area of 87 m2. Inside, there is:

• Two bedrooms;
• Necessary equipment;
• Furniture.

A large balcony with a canopy and sunshade blinds will allow you to enjoy picturesque views and spend time outdoors. The house is conveniently located: just10-15 minutes on footbefore school and800 meters to the seaThe area has a calm atmosphere, which makes life here comfortable.

Apartment in Petrovac

The next option is an apartment in Petrovac, Montenegro, for €143,850. The area of this comfortable accommodation is41 square metersThis complex is located in a picturesque and attractive spot on the Budva Riviera, in17 kilometers from Budvaand36 kilometers from Tivat AirportPetrovac is surrounded by green olive groves and pine forests, making it an excellent place for living and relaxation.

Apartment in Alanya

If you are interested in Turkey, there is an apartment in Alanya available for €140,000. This property has an area of48 square meters, available with an online viewing. The new residential complex is located in one of the most sought-after areas of Alanya —BothThis area is known for its developed infrastructure and cozy atmosphere, away from the hustle and bustle of the city. The complex is equipped with all modern amenities.

Apartment in Antalya

And finally, it's worth noting the apartment in Antalya, which is priced at €146,000. This property is located in a new and rapidly developing area.AltıntashThis place attracts investors as it is just starting to develop, making prices particularly appealing for investment. The apartments are located just a short distance away.4-5 kilometers from the sandy beaches of Laraand inthree kilometers from the city centerthat provides comfortable living within walking distance of all necessary services.

Real estate in Alanya

Real estate in Alanya attracts the attention of many potential buyers due to its unique offerings. Currently, an apartment is for sale priced at137,200 €, with an area46 square metersOne of its advantages is the possibility of obtaining a residence permit after the transaction. Additionally, the deal can be conducted remotely, including online viewings, and the cost of the apartment can be paid in rubles. The new residential complex is located in the Oba district, which is renowned for its beautiful nature and high level of infrastructure. Major supermarkets, restaurants, and a city hospital are in close proximity to the complex.

Apartments in Antalya

It is worth noting that in Antalya, a popular tourist destination in Turkey, there is an opportunity to purchase an apartment for145,000 €This apartment has an area47 square metersIt also offers additional opportunities, such as obtaining a residence permit. The project features exquisite architecture and thoughtful design, ensuring a comfortable living experience for residents. The complex includes both covered and open parking spaces, as well as beautiful green areas for relaxation and leisure.

Apartments in Mahmutlar

A property in Mahmutlar is also up for sale in this format.2at the price132,000 €The area of this housing is65 square metersThe apartment offered by the owner is located just 600 meters from the sea and within walking distance of all necessary amenities, such as:

• supermarkets
• cafe
• markets

Creating comfortable living conditions here attracts people considering permanent residence.

Residential complex in Gazipaşa

In Gazipaşa, there is also an interesting residential complex with prices starting from135,000 €, while the area is66 square metersThis area is located in40 km from Alanyaand180 km from Antalyawhich makes it attractive due to the presence of an international airport and a well-developed transportation network.

Land plot in Montenegro

On the other side of the country, in Montenegro, there is an interesting opportunity to purchase a plot of land in Djurashevici. The area of the plot is930 square meters, while it is located just in150 meters from the seaThe specified building coefficient0.4opens up prospects for future construction. It is also worth noting that the airport in Tivat is only7 kmwhich is a significant advantage.

Another apartment in Alanya

Another apartment in Alanya, priced at146,500 €, offers a layout2and the total area65 square metersThe apartment is located on the second floor and includes:

• open-plan kitchen
• bedroom
• bathroom
• balcony

A notable feature is that the property is sold with furniture and all necessary appliances. The location is just1.7 km from the seamakes it quite comfortable for living.

Conclusion

Thus, the variety of offerings in the real estate market in Turkey makes it particularly attractive for buyers who are looking for their ideal living conditions. Convenient locations, picturesque views, and well-developed infrastructure create all the conditions for comfortable living and relaxation.

Sunny Beach, Bulgaria

In the real estate world, there are many exciting options, and one of the most popular destinations is Sunny Beach in Bulgaria.

Real estate in Alanya, Turkey

In Alanya, located in Turkey, a unique apartment is for sale for €149,000. This property covers an area of 109 square meters and is situated on the eighth floor of the "Panorama Garden" residential complex. One of the key advantages of this property is the orientation of the windows and balcony facing southeast, which allows for excellent morning light and picturesque views of the surrounding mountains and sea—factors that are extremely important when choosing real estate on the Mediterranean coast.

The apartment includes:

• two separate bedrooms,
• two bathrooms,
• a well-equipped kitchen,
• a spacious living room.

These features make it very comfortable to live in.

Real estate in Halkidiki, Greece

In Greece, on the Chalkidiki peninsula, an apartment is also for sale for €140,000. This property is located on the second floor and has an area of 60 square meters. The apartment in Kassandra is cozy and is perfect for living, accommodating:

• two bedrooms,
• a living room combined with a kitchen,
• shower.

Despite the lack of an elevator, it does not diminish the appeal of the apartment and its location.

Real estate in Thailand

As for the real estate market in Thailand, Denis Chernov from PhuketLuxe reports that the average annual return on investments in this segment is about7%from the cost of the object. Considering the decrease in prices for20-30%Compared to pre-pandemic levels, investors may find properties with high rental yields — up to9-10%per year.

For example, for €135,000, it is possible to purchase a townhouse with high rental occupancy. In stable market conditions, such property can yield up to15,000 €per year before tax deductions. Additionally, for €125,000, there is an option for an apartment with two bedrooms located near a popular beach — such offers are in high demand.

In 2019, one of the managed assets brought in10,500 €Incomes, but in 2020 the situation changed, and rental rates dropped by half. However, as the flow of tourists begins to recover, which is expected to happen between November 2021 and March 2022, prices will rise again.

This can provide opportunities for those making purchasing decisions now, as they may find themselves in a more advantageous position. In a "healthy" market, obtaining...1,500 €per month from real estate, the value of which is150,000 €It can be problematic. Exceptions occur from time to time, but there aren't that many — just a few.10-20 objectsthroughout Phuket.

Real estate in France

Regarding the real estate market in France, Irina Dupor from Immoconcept noted the high liquidity of this segment. Even amidst global economic turmoil, the price situation in France remains stable, especially in the provinces. Housing prices are rising here, but the returns may require a significant initial investment.

Government subsidies intended to support those affected by the pandemic may lead to increased inflation as the money supply in the economy continues to grow.

Economic challenges and the choices of states

In times of economic turmoil, every country faces a choice: to print more money, which leads to inflation, or to resort to borrowing. Both of these decisions have a negative impact on citizens' savings, as inflation reduces the purchasing power of money.

Aspiration for investments

As a result, people who have free financial resources begin to look for ways to preserve and increase them. Concerns about asset devaluation drive them to choose investments that are traditionally considered a "safe haven" during periods of economic uncertainty. The most sought-after assets in such times are:

• Gold
• Real estate

The potential of the real estate market

Today, there is an opportunity to purchase an apartment that yields a return of up to 5%. Thus, to ensure a stable income of €1,500 per month, an investment of around €360,000 in real estate would be required. If an investor only has €150,000, they can take out an additional loan of €210,000 at a low interest rate of just 0.6%.

Despite the current economic challenges, such low interest rates on mortgage loans look very attractive, especially when the government offers interest-free loans for first-time home purchases. This helps combat the rising inflation.

Investments and capital growth

Investments aimed at capital growth are becoming particularly relevant against the backdrop of modern economic realities. A striking example can be found in new developments in the suburbs of Paris, such as Clichy. In a new residential complex located near the planned metro line, apartment prices are likely to increase significantly in the coming years.

Taxation of rental property

Additionally, it is worth noting that in France, non-residents are taxed on rental income at a rate of 20%, but this rate is reduced to 10% for the rental of furnished properties. Before calculating the tax, owners can deduct from their income:

• Mortgage loan interest rates
• Incidental expenses

Thus, this significantly reduces the taxable base. Consequently, thanks to the right tax strategy, investments in real estate in France become even more profitable and attractive for potential investors.

Challenges of generating rental income

In summary, it should be noted that achieving rental income of 10-12% on an investment of €150,000 is quite a challenging task and, in fact, unlikely. Even in popular resorts with a long season, where owners typically profit from short-term rentals, only a few manage to reach such a level of net profit.

Don't forget about additional expenses, including:

• Taxes
• Marketing
• Real estate management
• Unexpected repairs

Ways to increase profitability

Nevertheless, there are various strategies that can enhance the overall return on investments. For instance, one can resort to borrowing, but this option is not always available, so it is essential to carefully consider all the pros and cons of using borrowed funds.

An alternative approach is to buyreal estate at the construction stage, which comes with certain risks and does not guarantee immediate income. It is also possible to negotiate with sellers, as many of them are willing to make concessions in the context of the pandemic, hoping for financial benefits in the future.

Conclusion

In concluding our discussion about investment opportunities in real estate abroad, it is important to emphasize that each region offers unique conditions and prospects for the discerning investor. Specifically in Turkey, as we have already discussed, there are two clear directions: active investment during the construction phase for subsequent resale and a more stable income from rental properties.

While Spain and Italy attract investors with appealing conditions for long-term rentals, it is important to understand that the actual returns can be significantly lower due to taxes, management expenses, and unforeseen market circumstances.

Portugal, although it offers lower yield levels, still remains an interesting option due to its stability and wonderful climate. However, even here it is important to remember the risks associated with commercial real estate, which, as we have seen, was hit hard during the pandemic.

Recommendations for investors

Therefore, before making a decision to invest significant funds, it is essential to consider a multitude of factors:

• Current economic situation;
• Legislative changes;
• The capabilities of local real estate markets.

Personally, I recommend approaching the choice of investments thoughtfully and without haste, carefully analyzing each of the presented options. Invest not only in square meters but also in the future: study, compare, and choose the option that suits you best. This way, you can not only minimize risks but also maximize your chances of obtaining stable income.