Why is investing in the sun so interesting and attractive?

04/12/2022

LEADING LUXURY HOME

WHAT REASONS IS INVESTING TO THE SOLEIL IF INTERESTING AND ATTRACTIVE?

Due to the often greyish and rainy western climates, but also to the ubiquitous economic crisis in recent years, more and more people are choosing to invest in the sun, in paradise places like Mauritius, Madagascar, Seychelles and many others, for many reasons.

Why invest in the sun?

Acquiring real estate in places where the sun shines throughout the year has a number of advantages such as:

Enjoy a very pleasant climate and beautiful landscapes as far as you can see

Investing in the sun is primarily about acquiring property in places where you can enjoy a pleasant climate and at the same time, magnificent paradise landscapes. It's well known, there's no better than a beautiful blue sky
sunny to have a good morale but also to be able to practice the various outdoor activities that one likes to do. Thus, there are places which, because of their geographical location, have a mild and sunny climate throughout the year. This is why many real estate agencies, companies and individuals make the choice of investing in the sun by buying real estate that they will subsequently rent. And there are plenty of destinations to satisfy the expectations and requests of each customer: Morocco, Spain, Brazil, Indian Ocean and many other destinations that are likely to make many followers. In recent years, the islands and archipelagos have been particularly successful, but why?

Benefit from low prices

This is truly confirmed, investing in so-called paradise places has certain tax advantages. However, we must look for countries where islands are stable not only politically but also fiscally. It is therefore necessary to take the time to check certain parameters, such as terms and returns on investment, also to know whether it is possible to make profits in the immobilizer in the place where one wishes to invest.

Is investing in paradise and sunny places a combination of business and lifestyle?

We have seen earlier, investing in beautiful places where the climate is very pleasant can have a real advantage for the real estate investor. It can also be very advantageous for the person(s) who will rent the property. They will be able to immerse themselves in the local atmosphere and climate, while enjoying either their retirement or their holidays or their professional activities. Investing in places where life is good is therefore an asset for the investor, who benefits according to his choice of
location of property tax advantages more or less attractive, and for the customer.

Where is the Indian Ocean worth investing?

The Indian Ocean is very large. It spans thousands of kilometres and includes a multitude of exotic islands with mild and very attractive climates such as Mauritius, Madagascar, Seychelles, Maldives and many others. Each of these islands has its own political, judicial, economic, fiscal and financial systems. From this, it is important to clearly define each of these criteria to know which location will be most appropriate for a safe and profitable long (and short-term) real estate investment.

Investing in Madagascar Island

Madagascar is a vast and sumptuous island. Investing there therefore makes a lot of real estate investors dream. Only, it is quite complicated to become owner in this country located off the South-East coast of Africa. In the context of real estate investment, there are two options for ownership: the emphyteotic lease, directed mainly to individuals and the claim to property rights in the same way as Malagasy citizens, directed to companies. It is therefore necessary to adapt, know everything about the local operation, and know how to manage its affairs efficiently and diligently.

Investing in Seychelles

Investing in real estate in this archipelago is quite feasible but also very interesting since there is no property tax or housing tax payable. This makes it possible to rent real estate at very attractive prices.

Investing in the Maldives Islands

Maldives also has the ideal geographic, climate and environmental profile to invest. However, since 2012, these islands have experienced a period of political instability, as well as the judicial system of these archipelagos are not considered to be truly reliable. Credit is rather honery and access to financial services is limited. The real estate investment sector is therefore quite complicated in the end.

Investing in Mauritius

Mauritius seems to be « the place to be preferred » to make real estate investments. Indeed, this paradise island has many advantages in this area: politics and the economy are stable, taxation is advantageous, income is taxed at a fixed rate of 15% as well as the tax rate on local companies and VAT. A non-double taxation agreement has even been signed between Mauritius and several countries including France. If you are a French investor, you will benefit from no taxes on property taxes, dividends, wealth and inheritance taxes.

Is investing in the sun a cliché or a real economic opportunity?

More than a cliché, making the decision to make investments in such places turns out to be in reality, a real economic opportunity. However, different parameters must be taken into account, such as whether a country or archipelago presents political, economic, financial, judicial and fiscal stability. The desire to invest in real estate in these places should not therefore stop at this idyllic image of postcard, with its coconut trees and sandy beaches. A preliminary study of the different conditions specific to each island or archipelago is essential. For a real estate investment to be safe and reliable, it is necessary to know all the information needed to put it in place and function properly. Investing in the sun can therefore be a real economic opportunity if all upstream steps have been properly implemented.

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