Hidden Benefits of an International Real Estate Investment: Diversification
Diversification is a prudent and popular way for you to hold onto your assets. By spreading your money into different types of investments, it lessens risk and you have the opportunity to profit from growth in different verticals. Taking advantage of an international real estate investment is one of the ways that you can do this. However, this type of investment can also offer much more.
Hidden Benefits of an International Real Estate Investment: Inexpensive Vacation Home
Imagine taking a vacation and staying in your beachfront home that’s located in Brazil. The cost of this international real estate investment is likely to be much lower than the cost of most beachfront property in the United States. By purchasing a second home in a foreign country, you may have the opportunity to not only spend less on your vacations but slowly build up equity in your foreign asset.
Hidden Benefits of an International Real Estate Investment: Earn Rental Income
By purchasing a rental condo in another country, it gives you the ability to produce extra income that is solely dependent on the economy of that country. In addition, your investment income will be pegged to a currency that’s not the dollar. This spreads your assets into other factors that do not completely rely on the strength of the United States dollar.
Hidden Benefits of an International Real Estate Investment: Hard Asset
Fiat currency can be printed by a central banker without asking your permission. This takes away your buying power and slowly erodes your wealth over the years if you strictly hold onto any assets denominated in dollars. An international real estate investment is a hard asset that cannot have its value depreciated by the Federal Reserve. It’s a hard asset that can’t be duplicated.
Hidden Benefits of an International Real Estate Investment: Tax Deductions
When you have real estate that’s located in a foreign country, you may want to travel to that location and take care of any business that is associated with your investment. A benefit of having this type of asset is that you can take your travel costs and deduct them from your taxes.
Hidden Benefits of an International Real Estate Investment: Foreign Residency
If you are an individual that has ever thought about moving to a foreign country, purchasing an international real estate investment may be one way to start the process. In some countries, you are qualified to have a residency visa when you are an owner of property that’s located in that country.
The number one key to being successful at a International Real Estate Investment is?
To understand what you are there to do!
From our experience, this is the most critical phase. If you have a clear plan it is easier to deploy capital while still operating within a margin of safety.
The SWFL REIA is the premier place to understand what you are here to do, in relation to real estate investing! We look forward to meeting you at a meeting soon!
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