If you’ve got a little money and you’re thinking about investing, buying a piece of property abroad may be the smartest thing you could do with your money. Real estate entrepreneur Adam Hochfelder has been actively involved in the realization of real estate investment and development projects for decades now, and as he points out, before you even start considering purchasing an overseas property, you must do your research, and acquire every piece of information related to owning an international investment.
Assuming that you’ve done your research, you’ve visited the country and property more than once, you’ve assessed the local real estate market, and you are confident that your purchase meets your lifestyle and investment objectives, Adam Hochfelder reveals the key facts related to making an international purchase in overseas real estate.
Like real estate anywhere, real estate overseas is a hard asset, and as Mr. Adam Hochfelder indicates, in the current investment climate, hard assets are considered as the most sensible investment class. Regardless of its location, a piece of real estate is a real asset that you control and can’t disappear altogether. Even more, over time property investments can grow in value and deliver reliable cash flow.
Investing in an overseas property is an opportunity to use real estate as both an investment vehicle and a strategy for a new and better life. Furthermore, an overseas real estate is great for creating and preserving legacy wealth while at the same time you reinvent your life and salvage your retirement. Real estate overseas can serve as a holiday home, a retirement plan, and can even be part of a legacy or heritage that can you leave to your descendants.
At a time when diversification beyond U.S. markets and outside the U.S. dollar is more important than ever before, real estate overseas may be the ultimate diversification strategy. Namely, purchasing property overseas provides portfolio diversification in the form of currency diversification, market diversification, and diversification of asset type. As Adam Hochfelder explains it, no matter how many kinds of investments you hold, if they’re all invested in U.S. markets, you are not diversified. That means your eggs are still in one basket and you are at the mercy of U.S. markets and events, which can be a dangerous place, especially right now.
Another practical benefit for Americans owning real estate outside the United States has to do with the fact that real estate overseas is safe and private. Namely, Americans are required to report all foreign financial assets to the IRS each year, except for two foreign assets that the IRS doesn’t insist on knowing about. One is gold and other precious metals, and the other is foreign real estate held in your personal name.
However, if you are new to buying and investing in international real estate you are likely to have a lot of questions. Even seasoned real estate investors like Adam Hochfelder can have trouble deciding where and when to buy in international markets. That’s why, before buying any property overseas, it’s important to check the local laws and ensure the transaction is conducted in a manner that will protect your property rights.