Why is it so Beneficial to Own International Real Estate?

Updated: September 24, 2019

First of all, even for the small amounts of assets, it is not very logical to keep it all in the same pocket. Just in case of the possibility of something going wrong, it is smarter to keep one’s belongings and assets in several different accounts, businesses, or properties. Yet, even if a person works very hard to diversify their assets, keeping it all in one country negates all the effort.

Keeping one’s all the investments in their home country means that in a possible political or economic problem in the country, one’s whole financial portfolio getting damaged. To prevent this danger, investors choose to diversify their assets internationally. 

International Diversification of Assets is the Modern Popular Technique

It is simply smarter to keep one’s wealth in several different countries in case something goes wrong. It is always a possibility for things to go downhill. Especially in modern day world and modern economics, things tend to change quickly. Since it is not easy to always be in control of the dynamics of modern economy, it is easier to have one’s guard up.        

It is also undeniable that carrying one’s financial activities overseas grants the investor endless opportunities that they may not have in their home country. So, in addition to keeping one’s assets safe, diversifying internationally also provides the investor with new resources and opportunities.

As mentioned above, there are countless investment opportunities around the world. Therefore, it is not easy for investors to decide on where or what to invest in. A good option to start with is international real estate. It not only helps investors to internationalize their finances, but it also offers plenty of other benefits. As it protects the wealth of investors, it also may grant higher returns, better tax schemes or even a second passport.

Possibility of Higher Returns

This is understandably one of the most popular reasons of buying international real estate. Most of the developed countries do not offer huge returns from real estate investments. However, developing markets like Cambodia provide investors with great opportunities. Cambodia keeps sustaining its growth for a decade now and it is likely to keep growing. Thus, if one chooses to participate in Cambodia’s real estate market, it is more likely to get higher returns on their capital.

Protecting the Assets

As mentioned several times in this article, buying international real estate is a great way to protect one’s assets. Owning property abroad isolates one from the problems of their home country. Any instability or fiscal problem that might occur in the home country is blocked by the international real estate owned by the investor safely.

Also, investors often deal with judicial problems and frivolous attempts by people who want to take investors’ assets. Owning an international property means that the people filing suit against the owner must go through the jurisdictions of the foreign country. Therefore, investing in international real estate might protect investors against judicial risks, too.

International Real Estate as Government Insurance

Issues like currency devaluation, trade wars, and political changes may make investors nervous. So, it is always advantageous to make a transition into safer and more stable markets as an insurance policy against possible dangers.

Tax Advantages and Alternative Strategies

Owning international real estate makes investors subjects of different tax regimes. So, it can also enhance one’s tax strategy regardless of their home country. With proper planning, many investors successfully reduce their tax rate significantly. To be a subject of a new country’s tax regime may prove to be drastically more profitable in terms of paying taxes. International real estate can therefore be an important component of investors’ tax strategy.

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