Would you buy property where you live or invest back home?
Posted by Flashy_Pause_4913@reddit | expats | View on Reddit | 24 comments
I’ve been living in Dubai for a while now, and it’s starting to make me think about long term plans.
I keep going back and forth between buying property in Dubai or just continuing to rent here and investing back in my home country instead.
The Dubai real estate market looks attractive from the outside, but I’m not sure how it works out long term for expats who might not stay forever.
Also trying to understand how people choose between different real estate companies in Dubai, since there are so many options and it’s hard to judge reliability.
For other expats living abroad, how did you approach this? Did you buy where you live or invest back home?
Just-Here2-Learn@reddit
A primary home in not an investment, it's an asset. Middle class tell themselves it's an investment to make them feel better. Add in maintenance, taxes, insurance, interest, then add in the value of selling it 5 years later because it increased in value, only to buy a different home that now cost more because it too has increased in Value ...The American Dream of home ownership was made up by the banks to put you in debt so you have to keep working. Call me crazy, but really think about it. Yes I own a home that is paid for/mortgage free, but I never consider it part of my NW or portfolio because if I sell I still have to have somewhere to lay my head at night.
sailoorscout1986@reddit
This makes no sense
DoCRsF@reddit
When I left my home country I never wished to return, that still holds true today. I sold up everything and moved to be with my wife where we lived rent free in Manila.
Now we have moved out of Manila after a long time and live near her province. Here’s the thing I can’t own the land, it’s in wife’s name so when we purchased land it’s in her name only. We have already built the wall and the house is next but it’s not an investment because once finished even though it’s a simple property it’s value is too high for the local population and you see properties more expensive sitting on the market for years and they just slowly, but surely deteriorate, more so if it’s just a caretaker there looking after it. Our location while lovely is not what I would say suits someone with a more modern way of life.
So here in Philippines a property is for life mostly, you settle down in a location you like and that’s it. Now I know we can own condos but I can’t stand a small concrete block with no garden plus I’m right by the ocean with lovely beaches and the people around us are wonderful.
So in our case the property is not an investment, it’s an asset and one we use till the end in our case. Investment though, that’s back home kind of because its managed by a Financial institution and it’s off shore from my home country but as investments go there’s nothing here in the Philippines that would want me to invest.
Sufficient-Job7098@reddit
This is one of those cases when there is difference between an immigrant and an expat.
I am an immigrant. I moved to permanently and I picked country that has established institutions when it comes to investments. So it made sense to buy house is a country I will be spending the rest of my life, same with investments.
If I were to move temporarily then I would unlikely invest in my host country.
HerroWarudo@reddit
No incentive currently but depends on my (future)partner. Already have parent's home as a backup, also rather not adding another responsibility check to the list.
Long_Relationship578@reddit
Depends a lot, but I think that, normally, its better to buy property on your home country for safety.
I live in Europe and I come from South America. I am buying a big house close to my home town. If anything happens and I decide that I need to go back, I will have an WAY easier life.
I think as if I am building a vault for the apocalypse hahaha
I also would not invest in those cities that are super hyped (such as Dubai), bc you never know what might happened in the future, and you may lose a lot of money on property in such cases. (Maybe the city stop being so atractive, maybe the hype wears off, ect...)
carnivorousdrew@reddit
Same. This gives you way more freedom. I bought in Italy so that either I can retire there with a US retirement pension or whenever I want to take a long vacation I can just go there. The property taxes on it are negligible compared to those in some US states.
Flashy_Pause_4913@reddit (OP)
That’s actually nice… having a place to just go back anytime hits different.
Was it more for lifestyle or money?
Mission-Mulberry-501@reddit
For me it is Climate change (host country will be unbearably hot in 20 years) and paperwork/bureaucracy - obtaining and maintaining papers in yet another country is hard in old age.
Mission-Mulberry-501@reddit
For me it is Climate change (host country will be unbearably hot in 20 years) and paperwork/bureaucracy - obtaining and maintaining papers in yet another country is hard in old age.
carnivorousdrew@reddit
I am not renting the property, I use the stock market for investments, I find using housing as investment silly, time/resource consuming with high risk and usually it yields way lower returns than the sap500. It is obviously an expense, but I am glad to keep a place for myself if I ever need it.
According-Egg-3131@reddit
Be mindful of what country you're from and tax obligations. As a Canadian, for example, if I purchase a property in Canada while living in another country, I'm heavily taxed in Canada. Whereas if I don't purchase in Canada, I owe no taxes to Canada.
Flashy_Pause_4913@reddit (OP)
Yeah that makes sense… having a backup back home just feels safer.
That’s why I’m lowkey unsure about Dubai too…
FlippinHeckles@reddit
There might be a whole heap of tax implications when doing this down the road. Do your research of what it means to purchase a property in your home country as a non-resident.
For example in Australia, if you purchase a property as a non-resident then return home live in it then sell it, the sale will be treated as if it is still a foreign owned property despite that you now have residency at home. The Australian government has written the rules so they can cash in on your foreign earnt wealth even though you spent that money at home. Double dipping bastards.
Flashy_Pause_4913@reddit (OP)
Yeah fr, no one really talks about this stuff.
Tax side sounds way messier than it looks 😅
FlippinHeckles@reddit
Yes in Australia even if you die in the property your heirs must pay foreigner tax rates when they sell it.
In such a situation is better to buy your property before you leave to live elsewhere or don’t buy until you have moved and become a resident back home.
Really do your research or talk to a tax advisor before buying properties in countries you are not currently a resident of.
Wunid@reddit
I’d prefer to buy in the country of origin because of the much lower purchase costs (taxes, commissions, etc.). Legally, it doesn’t make much difference because everything is within the EU and I can buy without any problems. I’d also prefer a place where tenants’ rights are more limited (less risk of non-paying tenants – it’s easier to get rid of them)
Flashy_Pause_4913@reddit (OP)
Yeah lower costs back home hit different.
Didn’t even think about the tenant part… that’s actually big.
why-complicated@reddit
For me, buying to live in UAE, buying to hedge long term property price rises in home country.
Flashy_Pause_4913@reddit (OP)
That’s actually a smart way to split it… not going all in one place.
Is it easy to manage both or kinda hectic?
Mission-Mulberry-501@reddit
I think I want to retire in my own country, so i bought something small for that purpose. If anything changes meanwhile, I can sell it later.
Flashy_Pause_4913@reddit (OP)
That’s actually a smart way to do it… keeping it low risk.
Was that always the plan or just a backup thing?
astraladventures@reddit
Bought an apartment in central shanghai in 2002, lived there 20 years and sold in 2022.
No property taxes, very small capital gains tax and low management fees.
Best investment by far I’ve ever made.
khankipara99@reddit
i would absolutely buy something in Samui or south africa if i could afford it ..