Seeking to new opportunities of investment? Trying to turn your whole life savings into a tried and tested option to generate profit and make the most of them? The truth is that real estate is still a great investment option that not only generates an ongoing income source but also, depending on the chosen place, might see its own value raised over time. For that reason, finding the right place is key to see the return on investment and to have that (needed) feeling of self-reassurance.

The quest for the right place to invest in real estate is not an easy one, but we have a couple of ideas that we’d much like to share with you. One of our suggestions is to think about a country strategically located, with an ever-growing economy and a long proof history of economic prosperity: Andorra

The idea of Andorra property is an appealing one for various reasons. Let’s analyse them. The privileged location of the country surrounded by breathtaking landscapes, the considerable high quality of life not to mention the tax benefits are alluring enough to attire investments from all over the world.

A 468 m2 and 71,000 residents country has known how to build a solid, brand new economic model that responds to the more actual demands. Strategically located between Spain and France, a place that built its prosperity on a model of tourism, trade and construction, has known better and reinvented itself to offer even new horizons that better respond to the new economic models. The attractive fiscal advantages completed integrated into an international context undoubtedly offers opportunities for many types of investment, being the perfect soil to see companies with an international vocation to grow, expand and bloom.

Let’s see in deep why invest in Andorra is a wise move.

• A new economic model: based on the liberalisation of foreign investments, Andorra offers different strategic opportunities on both a business and individual level, creating a new model over the old -but always successful- built in the past over tourism and the construction sectors, even defying the more recent international pressures pursuing zero offshore zones.

• Taxes. The present tendency to transparency has led to an international response towards the necessity of an automatic tax information exchange. A total of 51 countries have already signed a multilateral agreement for automatic tax information. Andorra has also signed, but to begin this procedure in 2018, with the expectation of a retroactive period of one year.
  

• The exceptional quality of life. The independent principality holds a privileged position regarding the level of per capita distribution, placing the country on the international map only below Luxembourg and Switzerland.

• Low tax burden translated into more advantageous cost of living and everyday benefits, other than great opportunities of important business. Residents can benefit from high standard products and services prices that are remarkably lower compared to other countries in Europe.

• Location of privilege and natural environment. Proximity to countries like France and Spain makes it unique, with a natural protected environment that is incomparable.

• Excellent security standards. Stability and security are two key points in any real estate investment. Andorra has the lowest crime rate in the world which makes it socially,  stable country with a high citizen security rate.

• Unbeatable Healthcare. The exceptional quality of the public health system excels on its own but also enables benefitting from healthcare abroad via international
  agreements.

• Recreational and sports facilities. Famous as a winter ski destination, the principality offers not only skiable areas but also all sorts of mountain sports as well as many opportunities for outdoor activities and adventures, as well as thermal wellness facilities.

• Cultural footprint. Art and tradition have always been present offering the highest number of museums per inhabitant in the world. But also a National Auditorium a Congress Centre and all sorts of events and festivals throughout the year. The new landmark is the Carmen Thyssen Museum, the right place to find Gauguin, Matisse and Monet.

• New technologies. The country is always open to newness, development and innovations in all fields, and technology is no exception. Andorra is, in fact, a pioneer in the field, with the digital switch-over and UMTS coverage that have already taken place and a countrywide available fibre-optic network.

There is no doubt that the Principality has become an interesting opportunity for investors with both short and long-term vision. The advantage that the real estate investment offers is crystal clear: in addition to the possibility of permanent flowing income, a growing capitalization value and multiple business opportunities.

While most homeowners will have their own home contents insurance, landlords should also ensure they have home insurance to protect their property against damage, loss of earnings, and liability. While there is currently no legal requirement to have landlord insurance, it can be massively beneficial for landlords, as tenant insurance only covers the tenants, and safeguards their deposits.

There are some common issues that can rack up a bill, which you as a landlord will be covered for if you get the relevant insurance policies. We look at the four most common and worthwhile.

If you own a block of flats then your potential landlord insurance needs only increase. Your leases may require you to provide adequate freeholder insurance from a specialist, although the cost is usually recouped through a service charge. Afterall lenders will require the building to be insured in order to loan on mortgages for the flats.

Home emergency insurance will cover call-out costs

It’s the landlord’s legal responsibility to provide water, gas, electricity, and sanitation for the renters. This doesn’t mean paying the bills, only ensuring there is a connection set up. However, these also tend to be prone to breaking down without warning, needing emergency repairs and costly call-outs. Like homeowners, who are covered under their home insurance, landlords with home emergency insurance will be covered in case of any call-outs, such as an emergency boiler repair, or emergency plumbing.

Boilers can break down if they’re not correctly maintained, which is the responsibility of the landlord, and can leave tenants with no hot water or central heating. Emergency boiler repairs in particular can be costly, however can be quickly fixed by specialist boiler companies, and is covered by landlord insurance.

It’s important to quickly fix any boiler issues, as any water damage that may occur can damage the structure of the building, which could cost you even more money. Home insurance policies will also protect you from costly carpet or floor repair bills should a boiler leak.

Landlord liability insurance protects you against tenant injuries

If a tenant injures themselves on your property, as a direct result of something in your property such as tripping on loose carpet, you as a landlord could be held liable. If a tenant decides to sue you for an accident that happens, having liability insurance will cover you for:

• Damages awarded to the claimant
• Your legal costs in defending a claim
• The claimant’s legal costs, if you’re at fault

Landlord’s often don’t know who is coming in and out of the property, as this is down to the tenant. Having liability insurance is crucial to protect you from any injuries, or even deaths, on your property. Liability insurance can often be added as an extra to most insurance policies, but it may be a requirement for those renting as student accommodation or social housing. 

Loss of rent insurance may be crucial if you have a buy-to-let mortgage

If you’re buying a property solely to rent out, and have a buy-to-let mortgage, your provider may state that you must have loss of rent insurance to cover you if you lose out on rent because a tenant can’t (or doesn’t) pay.

If your property suddenly becomes uninhabitable, whether through fire or water damage, then your tenants will not longer pay the rent. Loss of rent insurance will cover you for this time, ensuring you do not lose out on any money you need to pay off the mortgage for the property. In some cases, this can be included as part of your buildings cover, but make sure you check this.

Insurance policies and the cover you get will be dependent on what policy you decide to go for. In most cases, the building insurance can even cover your contents insurance, however you should double check to make sure you have the cover you need based on your property. 

Contents insurance is vital if your property is furnished

Your tenant will want to protect their things from theft or damage and have their own home contents insurance. But just because they have this in place doesn’t mean you should avoid having a policy as a landlord.

Contents insurance will protect your belongings if you’ve chosen to rent it out fully or partly furnished. If you have furnishings such as beds, carpets, sofas, TVs, and white goods (domestic electrical goods such as fridges and washing machines), this is particularly key as they are costly to replace.

Home contents insurance protects your listed belongings against damage and theft, however it doesn’t cover any of your tenants’ belongings and that should be made clear to your tenants when they move in.