I moved from England to Spain almost 19 years ago. You will not make money buying and living in that house, never mind buying to rent. Yes you can get a lot more for your money in these countries, but there is a reason for that. They have plenty of housing and not enough people to buy them. I could go on and on with reasons not to buy and relocate, never mind buy to let. Take it from me, you will find over time that it was the worst investment you ever made.
I live on the cost in a very sort after area. Tick. I am a builder so bought a house that needed doing up. I have lived in it for almost 19 years. After all the work I have done on it , it may be worth 10% more than I paid for it. Take all the work I have done on it and the cost of materials, I would be lucky to break even. Also when you are a foreigner they treat you like you are some kind of ATM. I hate watching programs on the TV that appear to have people on them that are doing very well. It's like most things on MSM now, it's all lies. I love my live here, but as a investment no. If you want to work, you will be working twice as many hours for half the pay. Now that is not living the dream, or having more time with your family.
Instead of investing in real estate to make approximately 5%, why not just purchase stocks that pay dividends at approximately the same rate? Buy and sell at the touch of a button with no real estate fees, land transfer tax, lawyer fees, etc… No headaches with people not paying rent or damaging the property. Plus tax credits (in Canada at least). There are companies out there that have been steadily paying for decades along with increases in both their share price and dividends.
Even for those of us who feel unlikely to need or really be and to use a plan b property in another country, dual citizenship can be incredibly important.
The rate of return seems Low for me, I would only consider this strategy if the real estate is somewhere I would consider moving too. I like the Cost Segregation/Deprecation strategy better, has alot more Tax benefits: For example: https://youtu.be/6SxCwQAVetE
There is a possibility of reducing tax liability for US citizen. I use a tax lawyer who is able to effectively use tax treaties, intellectual property, foreign trusts/ corporations foundations. Everything is reported, after several audits, and many years I am satisfied that, although cumbersome, the savings to me are beneficial.
The part about owning international real estate in order to have a Plan B (leave your country) in case something bad happens in your country, is no longer something to laugh at. Things are changing very fast, and too many supposedly free countries are turning into tyrannies, sometimes from one day to the next. Examples include the previously great countries of Australia and Canada, with COVID as the pretext. Being able to work toward having a second passport in a stable 2nd country is a good Plan B to have.
I moved from England to Spain almost 19 years ago. You will not make money buying and living in that house, never mind buying to rent. Yes you can get a lot more for your money in these countries, but there is a reason for that. They have plenty of housing and not enough people to buy them. I could go on and on with reasons not to buy and relocate, never mind buy to let. Take it from me, you will find over time that it was the worst investment you ever made.
I live on the cost in a very sort after area. Tick. I am a builder so bought a house that needed doing up. I have lived in it for almost 19 years. After all the work I have done on it , it may be worth 10% more than I paid for it. Take all the work I have done on it and the cost of materials, I would be lucky to break even. Also when you are a foreigner they treat you like you are some kind of ATM. I hate watching programs on the TV that appear to have people on them that are doing very well.
It's like most things on MSM now, it's all lies. I love my live here, but as a investment no. If you want to work, you will be working twice as many hours for half the pay. Now that is not living the dream, or having more time with your family.
Instead of investing in real estate to make approximately 5%, why not just purchase stocks that pay dividends at approximately the same rate? Buy and sell at the touch of a button with no real estate fees, land transfer tax, lawyer fees, etc… No headaches with people not paying rent or damaging the property. Plus tax credits (in Canada at least). There are companies out there that have been steadily paying for decades along with increases in both their share price and dividends.
Even for those of us who feel unlikely to need or really be and to use a plan b property in another country, dual citizenship can be incredibly important.
The last part was the most important. Diversification was what I picked up the most. Not to let anyone government to have control of all your assets.
Never seriously thought about this topic. Thanks for broadening my horizons.
The rate of return seems Low for me, I would only consider this strategy if the real estate is somewhere I would consider moving too. I like the Cost Segregation/Deprecation strategy better, has alot more Tax benefits: For example: https://youtu.be/6SxCwQAVetE
Thanks for having me over Mariusz!
There is a possibility of reducing tax liability for US citizen. I use a tax lawyer who is able to effectively use tax treaties, intellectual property, foreign trusts/ corporations foundations.
Everything is reported, after several audits, and many years I am satisfied that, although cumbersome, the savings to me are beneficial.
The part about owning international real estate in order to have a Plan B (leave your country) in case something bad happens in your country, is no longer something to laugh at. Things are changing very fast, and too many supposedly free countries are turning into tyrannies, sometimes from one day to the next. Examples include the previously great countries of Australia and Canada, with COVID as the pretext. Being able to work toward having a second passport in a stable 2nd country is a good Plan B to have.
Nice double today!
Really liking the content these days Mariusz! I liked it before too, but somehow liking the recent ones
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