We look forward to discussing all the options with you so you can make the right decision for your situation!
Today, almost all investments are subject to increasing uncertainty. There is a cooling off in traditional investment hotspots like China and the United States. In the past decade, the US has barely maintained an average GDP growth rate of 5.67%. The economy is only now slowly recovering from the devastating downfall of 2008.
With Covid-19 playing such a huge role in the economy, some believe the US economy will slow down once again in the coming years. Likewise, China’s economy is slowing down, with 2015 being the first year that GDP growth was less than 7%. In fact, the Chinese government calls GDP growth below 7% the “new normal.” It has been speculated that China’s growth may be even lower due to factors like a decline in electrical output.
All in all, investments aren’t looking as promising as they once did, leaving many people wondering where to invest their money. It’s still possible to find a few good options. The right assets can provide predictable cash flow, excellent returns, tax advantages, and diversification. Moreover, real estate can be leveraged to build wealth.
Investing Ambergris Caye Real Estate, especially international real estate, is one of the best opportunities available in today’s global market. One of the most comprehensive diversifications one can find is in international real estate, which offers solid returns based on simple principles. Do you consider an investment portfolio that includes stocks from different industries to be diverse? The investments vary by industry, but they are still all in stocks. There is a good chance that they trade on the same exchange, and probably in the same country as well. As a general rule, a “diversified” portfolio of stocks does not actually represent a very comprehensive diversification.
Consider investing in international real estate. The very nature of an international investment makes it more diversified than an all-domestic stock portfolio. Investing some money outside your home country is an excellent way to diversify your investments. Diversifying into different asset categories, such as real estate, is also advisable. Investing in alternative investment opportunities allows for greater diversification of money from traditional stocks and bonds.
Real estate reporting on the international market
You can also legally diversify your investments by investing in international real estate. Foreign-owned real estate, with the exception of properties owned by trusts or LLCs, does not need to be reported to tax organizations, such as the IRS, so long as it is in your name. This is one of the most unique aspects of international real estate.
As a result of FATCA, the IRS must be made aware of virtually all foreign holdings. International bank accounts and stocks traded on foreign exchanges fall under this category. The IRS does not require annual disclosure for privately held, non-income-generating international real estate, however.
International real estate sales still require you to report capital gains income. Furthermore, holding international properties in an international LLC is a smart strategy for those in professions that are prone to lawsuits, such as doctors, builders, and private business owners. If a doctor gets sued for malpractice, international real estate could be protected from the clutches of money-hungry prosecutors.
Income from rentals
International real estate can also generate impressive returns for those looking to make money from rental income. In today’s market, being a landlord can be a challenging endeavor. The gross rental yield has dropped to below 4% due to taxes and fees. A landlord in one of the most litigation-happy nations in the world must also consider the immense liability that comes with the position. There is a lot of work and worry involved for a very small profit. As a landlord in the United States, you must be good.
Alternatively, if you were a landlord in Nicaragua, you might be able to get a gross rental yield as high as 13%. The situation is quite different in this case. Outside of the US, landlords may find the environment to be much more favorable.
Investments in international real estate can be shielded from legal prosecutions, or they can provide you with extra income. This is a great opportunity for prudent investors. Contact us if you have any further questions about international real estate, or global diversification in general. If you wish to achieve financial freedom and security through international diversification, we look forward to hearing from you.
