Investing in international real estate can be a great way to diversify your portfolio and reduce risk. By buying property abroad, you can protect yourself from market fluctuations, exchange rate volatility, and the risk of seizure by U. S. courts.
Plus, you may be able to get a higher return on your investments than you would in more developed countries. For example, my friends who live in Australia tell me that they are happy if they get a 2% return on their properties every year. That's right, only 2%. On the other hand, my friend who runs a real estate fund in Cambodia is doing much better.
He gets between 7 and 10 percent of the return on the rentals of his properties, while every year he earns between 10 and 15 percent in value appreciation. Nomad Capitalist has helped more than 1,500 high-net-worth clients grow and protect their wealth safe from high taxes and greedy governments. Learn how our legal and holistic approach can help you. Yes, investing in international real estate abroad is a good option.
The owners will have a beautiful property to live in abroad, either permanently or as a vacation home, or they can rent the property to get a good return on their investment. Renting a property is an excellent way to earn passive income. You can also buy commercial property, if you so choose. One of the biggest problems I've seen in the investor community is that when most people talk about diversification, they focus too much on what they're investing in and not enough on where. Unlike traditional IRAs, where investment options are usually limited to stocks, bonds, and mutual funds, the funds in a self-directed IRA can be invested in a broader set of assets, including domestic or foreign real estate.
The 1 percent rule in real estate investment takes into account the price of the investment property versus the gross income the property will generate.
