How to sell real estate internationally
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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