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<\/p>\nAs well as a\u00a0Chinese virus, the year 2020\u00a0brought with it a\u00a0whirlwind of events in practically every area of our lives. And the area of investment was no different. How has the world changed and where should you make investments in 2021?<\/p>\n
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2020 was an exceptionally turbulent year. If you\u2019re looking for a\u00a0simple prediction as to what the coming year is going to be like, it would probably pay off most to invest in a\u00a0crystal ball and development of clairvoyant skills. But that is the nature of markets.<\/p>\n
However, some basic rules remain the same, such as diversification, avoiding investing in areas that you do not understand and taking into account longer-term horizons when investing, as well as steering clear of \u201cmiraculous offers\u201d from all sorts of companies that promise profits in the range of tens of percentage points with \u201cvirtually\u201d zero risk.<\/p>\n
So where should you be looking to make investments in 2021?<\/p>\n
You probably wouldn\u2019t expect specialists in foreign real estate to recommend anything else but\u00a0foreign real estate.<\/a>\u00a0 But we are not the only ones who see interesting opportunities on the real estate market. Another group who rate foreign residential real estate among the most attractive investment opportunities are dollar millionaires. That is, successful people who have long-term experience of evaluating their property. We too have a\u00a0few good arguments as to why investing in foreign real estate could be the right choice for the year 2021,\u00a0whether it is an\u00a0investment property, or perhaps a\u00a0little house somewhere by the sea or in the mountains.<\/p>\n A suitable diversification portfolio reduces the risk of loss. It is one of the above mentioned rules for every investor. Real estate, as a\u00a0conservative investment, should be a\u00a0part of every portfolio. In the case of foreign real estate, this is not only a\u00a0question of diversification among individual products, but also currency and geographical diversification.<\/p>\n While we don\u2019t want to cause unnecessary alarm, when monitoring current political developments in the world, you may observe a\u00a0tendency which, albeit only in inconspicuous steps, could lead to partial restrictions in handling your own property or disproportionate taxation in the future.<\/p>\n Even in our country, you wouldn\u2019t be at all surprised if certain political entities came up with the idea of a\u00a0special tax in second residences and any other additionally owned real estate. You may even have heard similar suggestions from the mouths of some politicians. That is one reason why it may be wiser not to invest in real estate solely in the Czech Republic. Not to mention that fact that real estate prices in the country are relatively high at the present time.<\/p>\n The coronavirus pandemic has been quite a\u00a0shock for stock markets. But there has been no significant slump in real estate prices. On the contrary, in a\u00a0number of countries\u00a0real estate prices have continued to grow<\/a>. The appreciation of a\u00a0property\u2019s price over time, which almost always occurs in the case of real estate in the longer term, therefore remains a\u00a0reward for lower real estate liquidity.<\/p>\n Houses and apartments intended as a\u00a0second homes enjoy the greatest interest among investors in foreign real estate. This typically means\u00a0properties by the sea\u00a0<\/a>or\u00a0in the mountains<\/a>. If you purpose real estate exclusively for your own use, you will not have to address the issue of potential returns from leasing.<\/p>\n Most people, however, combine their own use of a\u00a0property and leasing at times when they are not using it.\u00a0 Restrictions on tourism in 2020, of course,\u00a0may have resulted in reduced profit\u00a0from leasing. On the other hand, in\u00a0Austria<\/a>, for instance, overnight stays for domestic tourists compensated for potential drops in accommodation of foreign clientele to a\u00a0considerable extent.<\/p>\n The world is looking at the year 2021\u00a0with optimism in connection with the gradual authorisation of anti-coronavirus vaccines and the fact that a\u00a0number of countries have already begun mass vaccinations of their populations as of the end of 2020.<\/p>\n At the same time, the segment of real estate for use as second homes has not suffered the fate of apartments purchased for rent via Airbnb, for example in Prague or other similar cities, where, in addition, there is a\u00a0risk of further restrictions by states in the future.<\/p>\n Over the past year, we have witnessed events that probably very few people would have foreseen. Measures connected with the worldwide Covid-19 pandemic changed the workings of the world that we were accustomed to.<\/p>\n Yet even in these times, own real estate abroad has proven to reap rewards. Coastal climates or the pure Alpine air are the best way to strengthen your immunity. And if you can rely on the facilities of your own house, you can safely enjoy a\u00a0holiday at a\u00a0time when some accommodation facilities have been forced to stay closed.<\/p>\n At the same time, after the initial shock connected with absolute isolation in some countries subsided, people who owned, for example, a\u00a0property or a\u00a0yacht in a\u00a0particular country were among the first who were permitted to travel there. And at a\u00a0moment when the Czech Republic ranked among the worst afflicted countries in the world, a\u00a0number of people took advantage of the opportunity to take shelter in their second homes abroad. Working from home by the seaside had an undeniable charm.<\/p>\n1. Diversification<\/h3>\n
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<\/p>\n2. Evaluation of real estate and income from leasing<\/h3>\n
3. Investment in foreign real estate can reap rewards even in extraordinary times<\/h3>\n
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