If you landed on this website, there’s a good chance you believe in the version of the ‘American Dream’ that goes something like this…
You work hard, accumulate wealth, and then retire somewhere far away in a tropical, exotic land, spending the rest of your days living life to its fullest.
Does that sound about right?
The key ingredient in this dream is that you’re living somewhere tropical and exotic. That’s something you can’t get in North America and it’s all part of the allure of owning a home overseas.
This begs the question — why own international real estate?
I believe there are several good reasons. Let’s start with my favorite.
Owning International Real Estate Provides an Incredible Lifestyle
It’s just fun.
Owning an international home is exciting, unique, and adventurous. There’s simply no comparison.
When you get to spend time at your home overseas with family, friends, business associates, and with your fellow like-minded international real estate owners, you’re part of a uniquely small club.
A club of people who have figured out what most others haven’t…
That when you move intentionally, you accomplish more. That when you have your life set up to be a daring adventure, you feel like a teenager on summer break again.
You’ve figured out that dreams really do come true.
Just wait until the first time you ask someone: “Hey, would you and your family like to spend a week down at my Villa in the tropics?”
Wait until you see how their face lights up. Wait until you see the value you’ve added to their life when they get to enjoy your home with you.
The lifestyle alone is well worth all the hard work it took to buy your vacation home in paradise, but it gets even better.
A Vacation Home Adds to Your Legacy
Let’s face it, you’ve worked hard throughout your life to get where you are now. You’ve likely made lots of sacrifices to be successful, and you’ve actually done it.
You’ve accomplished something very few people have — and an international home is an undeniable trophy for your success.
After all, how many people in your personal network own a villa in Belize or Costa Rica?
I invite you to be audacious and unapologetic about having something to show for your accomplishment — especially when that something can provide so much joy to your family and friends as well!
Ultimately, it’s not just the home that adds to your legacy, it’s all of the incredible memories you create with your loved ones. It’s the family traditions that get passed down from generation to generation.
And it’s the fulfillment in knowing that your grandkids will someday enjoy your piece of paradise with their own kids and grandkids.
Owning International Real Estate Makes a Lot of Cents
In addition to the lifestyle you get to enjoy, owning foreign real estate can also be a great investment.
For example, if you acquire the right property, you can earn passive income from others renting out your property while you’re at home. In fact, if the development you buy into has a rental program in place, this entire process is usually hassle-free for you.
Plus, if your international home is part of a rental program then you may be able to write off portions of your personal trips to your rental property.
Now is a good time to tell you that I am not a tax professional and this is not legal advice. I encourage you to speak with the experts on these matters, but I’m going to share some of the knowledge I’ve gained from personal experience.
If your home is part of a rental program, you get the benefit of tax depreciation.
Tax depreciation is a process of gradually charging the expense of a fixed asset’s cost over its useful life. This allows you to reduce the amount of taxable income reported by a business — in this case, your property in a rental program.
Here’s how it breaks down in dollars and cents:
If you acquire a $250,000 property and have it in a rental program, then you get to deduct off of your taxable income the cost-basis of $250,000 over a 40-year period. So, divide $250,000 by 40-years and you get to deduct off of your taxable income $6,250 per year. Every year. For 40-years.
That’s like getting free money — and it’s a big reason that the uber-wealthy in our world have their money parked in income-producing real estate.
Investing Offshore Adds Diversity to Your Portfolio
We live in a globalized world where international markets are constantly in flux. Keeping all of your assets in your home country is easy, but it’s not always the best strategic move.
Wealthy families are always looking for new ways to protect their assets, increase the privacy of their wealth, and to diversify their investments. Owning foreign real estate is a simple way to get the benefits of moving your money offshore — with the added benefit of owning a vacation home in paradise. Plus, depending on the country, real estate can also provide a quick path to dual citizenship.
Who doesn’t love a win-win?
You’ll find that international real estate provides a lot of options to help you reach your lifestyle and financial goals. Of course, it all depends on your specific situation.
For most people, the luxury of owning a piece of paradise mixed with the passive income and tax benefits from renting out your property are more than enough to make the investment worthwhile.
Are you ready to explore ownership opportunities in the Caribbean and Latin America? Check out our properties to learn more!
By Chris Williams
CEO of Legacy Global Development, an international real estate development company with properties in Costa Rica, Belize, and The Bahamas.