There are many different situations in which you want to invest in some foreign real estate. This can easily internationalize your entire life and your portfolio. Many benefits exist besides diversifying assets. It will protect your wealth and can so easily lead to new investment opportunities in other countries, like being involved in the international digital asset market.
International real estate ownership offers numerous benefits. The following are those that are the most important to know right now.
Higher Returns Can Appear With Real Estate In Another Country
One of the main reasons why someone buys international real estate is that they want higher investment returns. In developed countries, the profits coming from real estate investments are low. As an example, when you have a property in Australia if you get returns of 2% per year you are happy. This is a very low amount.
It has to be added that with the developed markets, everything operates in a cycle. You will surely not lose the investment you made if a condo is purchased in a prime location like London but you can end up stuck with that property for much longer than what you initially anticipated.
On the other hand, in the event that you find a really good real estate property in a country like Cambodia, you can make even up to ten percent per year on some properties. Appreciation value can easily lead the profit to 15%, even if this is on the higher part of the spectrum.
When you have no problems with risks or simply have a higher tolerance, international properties stand out as a wonderful option that brings in very high returns.
When you purchase international real estate you also protect the assets you have. You own some property that is outside the citizenship country so you insulate you from various issues or the instability that appears at home.
For instance, let’s say you owned property in both Asia and the US during the huge 2008 real estate recession. The values for the US real estate went down but the Asian properties remained with stable income.
In addition, when you own international real estate, you are protected if involved in a large lawsuit. The US is a really lawsuit-happy country. There is always a high possibility that you will be faced with a legal claim. In the event that a big part of your wealth is put into international real estate, those that attack you have to go to those jurisdictions.
If you can invest money in real estate in other countries, there is a really good possibility that you have large funds available. Whenever this happens, you have to build a really strong tax strategy. It does not matter what country you are a citizen of. Money can be “parked” in foreign real estate with the goal of avoiding some specific taxing thresholds. This is the clearest advantage of owning real estate in other countries when thinking about tax rebates and how much you can avoid taxes in general.