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Benefits of International Real Estate Ownership

over the years I have purchased several

dozen properties in various kinds in

countries all around the world and I've

helped people do that hundreds of times

more and I've realized a lot of benefits

from doing that in fact the only real

bad property deals I've done in recent

years have been in the United States

where I'm from so in this video we're

gonna share six unique benefits for

investing in global real estate

[Music]

I'm Andrew Henderson and I can't count

to 6 I'm going to share with you six six

thirty six six benefits to owning global

real estate in this video and explain to

you why you might want to consider

buying property outside of your home

country now we talked a lot about living

overseas here at nomadic capitalists why

you should move overseas for tax

benefits for lifestyle benefits to

create wealth faster but you don't have

to leave your country to invest overseas

a lot of people are taking their money

and they're going where they're treated

best they're selling properties in the

US and Australia Canada wherever where

returns are low regulations and tax are

high and they're moving elsewhere so

really the number one reason why you

consider buying real estate in another

country is you want a higher return I

have a friend who runs a property fund

for example in Cambodia not only can

they make seven or eight or nine or ten

percent rental yield every year in core

city centre you know solid tra

properties but they can also make

between ten and fifteen percent in

depreciation every year actually audited

appreciation now I'm not speaking to his

numbers but that's a pretty good example

of what you could expect I talked to

folks who are from Australia for example

and they're almost always getting one or

two percent it makes me go nuts to hear

how low the returns are and so not only

can you get higher returns but you can

protect the downside because some of

these markets haven't gone down in ten

or twenty years they've got the

demographics behind them and they

continue to grow whereas a market like a

Sydney or a London or New York may be

somewhat cyclical and you may end up get

stuck holding the bag so higher returns

possibly more downside protection in

foreign markets you can earn a lot

higher yields and you can grow the value

of that property a lot faster the number

two reason that people look at global

real estate is the idea of asset

protection okay this is a kind of a form

of government insurance which I'll talk

about in a moment but you know if you

are worried about a frivolous lawsuit

for example certainly there are ways in

the u.s. to protect your properties from

those lawsuits but by having it in

another country you're giving yourself

protection from a whole host of issues

now you're saying okay here's the turf

in which my property sits if you'd like

to get it

you've got to come over here and so it

makes it difficult for frivolous stuff

to happen to you the number three reason

is government insurance you know what's

happening in your home country and a lot

of people understand this better in

China or in India or in Iran Brazil you

know we always think that those are the

countries where people need to come and

bring their money and sure a lot of

Chinese people have bought property in

New York for example Los Angeles - then

that feel safe but what if you're a US

citizen what if you're from the Western

world you know there are a lot of freaky

things going on right now in addition to

the lower returns and instability there

are a lot of freaky things that are

going on in those countries that might

be worth protecting yourself against you

know it's it's one thing to buy an

insurance policy and ended up paying

money but if you can earn a higher

return by having a property in an

emerging market that has a better growth

story and you can protect yourself not

only in an asset basis but just protect

yourself from some of the madness that's

going on around the world to me that is

a win and on that level number four if

you're a US citizen and some other

countries citizens to foreign rules - is

actually one of the few ways that you

can legally have a non reportable asset

okay so if I'm a US citizen and I want

to buy a house or some land or whatever

it may be in another country I can do

that I can wire the money overseas I can

pay in cash I can do whatever and

there's actually not an IRS form on

which I need to report that there is f

bar there is FATCA you have to report a

lot of your assets the - that you don't

are foreign real estate in gold precious

metals in a private vault right outside

of the banking system for a lot of

people real estate is interesting

because yes you do have to report and

pay tax in the US on the income from any

property but if you want to park money

somewhere else you can park money in

foreign real estate enjoy appreciation

benefits you'll pay capital gains if

you're still a US citizen when you sell

it but you can enjoy knowing that I have

an asset that is relatively safe and it

is non reportable number five reason why

you might consider buying real estate

overseas won't apply to everyone

but that's for tax benefits now if you

are the APRA mention US citizen you are

going to pay tax on your passive income

no matter where you live in the world

there's not even a credit really to

exclude your passive income if you're

just investing in real estate passively

as a US citizen doesn't matter where you

live you're gonna pay tax and so if you

buy a property in in Bulgaria and you

pay 10% tax the US will give you a

credit for that 10% and you'll pay the

rest so you don't really save any tax as

a US citizen but what if you were to

give up your US citizenship or what if

you're the citizen of a country like

Canada or Australia where you can leave

that country and then go to live a

tax-free lifestyle or what if you're

living in a country like Singapore where

they don't tax your foreign investments

they only care what you do in their

country well in that case let's say you

live in Singapore let's say you don't

have a citizenship based tax obligation

and then let's say you go in invest in

property in Georgia or Montenegro where

taxes on rental income are four and a

half and five percent respectively

well now you're paying zero where you

live you're paying four and a half or

five percent and you can potentially get

a higher return but you're also keeping

more of that return so there is some tax

plenty that goes into it for everybody

but for the right person with the right

situation with the proper planning you

can reduce the tax burden substantially

to zero in very rare cases or to

somewhere in the single digits and the

number six reason why you'd want to

consider buying foreign real estate is

it's just part of a general

diversification strategy for your life

maybe you want to live there in the

future maybe you want a second home to

go to to spend part of your time maybe

you can get a residence permit in that

country by owning property and if you

spend some time there over the next year

or two years five years you can become a

citizen of that country and maybe that

citizenship gives you other

opportunities for a safe place to go

maybe you're someone who's worried about

chaos in the world and you want a place

to go and escape crazy stuff that could

happen you know you see riots in some of

these places you see some weird stuff

happening maybe you just want a home

that you can go somewhere and you don't

have to worry about finding a rental you

don't have to worry about living in a

hotel so whether you're avoiding

something negative or whether you just

want to enjoy you know running something

positive I was with some folks last week

in Montenegro

and they just fell in love with the idea

of spending their summers on the on the

coast of Montenegro as I do and it's

just beautiful and so to own a property

there in a market where prices have

historically gone up pretty consistently

and and to not have to go and pay rent

and to know that you always have a place

to go it's just a home it's part of the

strategy of creating bases or giving you

the option to create bases in the future

it allows you to create a lifestyle and

be diversified and I think that property

for a lot of people is actually a good

first step because you're not forced to

leave your country you're not forced to

you know leave your family leave your

friends you could just go and buy a

property and maybe that comes in the

passport residence permit whatever else

maybe it allows maybe that allows you to

open a bank account in that country but

property for some folks is a good first

step because it gets you ingratiate into

the idea of living the nomads capitalist

lifestyle that hey you can just dip your

toe in buy a property see how it feels

and from there once you start taking

action once you start doing something if

that's your first action I think it'll

start to lead to more so those are six

important benefits for why you should

consider buying real estate in another

country and I definitely think it's

something that everyone with wealth

should strongly consider to go where

they're treated best

I'm Andrew Henderson and if you're

looking for a way to legally reduce your

taxes build your freedom and create

wealth faster as a global citizen then

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