International real estate investments protect wealth and sustain growth

Despite the unpredictable state of economies around the globe, property, as a rule, remains a sound long-term asset in which to invest. “Property acquisition through Citizenship by Investment Programmes continues to offer attractive options to investors,” says James Bowling, CEO of Monarch & Co, a company that specialises in investor and immigration programmes in a number of territories around the world.

He notes that many investors in today’s market are looking for ways to diversify their specific property market exposure by disinvesting from their current country of residence and looking at different prime property destinations for investment purposes. “Many investors are also choosing to diversify into property from equities and other similar asset classes to create a more balanced portfolio,” notes Bowling.

Bowling also points out that Citizenship by Investment Programmes provide the perfect solution for investors who are looking to diversify their portfolio while at the same time create a secure investment channel to protect their wealth. Added to this, these Programmes offer a range of benefits, from dual citizenship opportunities which come with freedom of travel and lifestyle benefits, to tax advantages and more.

“Citizenship by Investment Programmes also offer investors a means through which to sustain the growth of their investments, provided the necessary due diligence has been undertaken and investments have been made wisely,” says Bowling.

Citizenship by Investment Programmes generally have at least two investment options which usually include real estate investment, investments in business ventures and investment in government stocks and bonds. Bowling believes that real estate investment is often the best choice as it is less vulnerable to fluctuations in value than other investment options, and provides investors with a tangible asset that has the potential to offer sound returns.

“The sound returns in this kind of international real estate investment are based on the fact that Citizenship Programmes provide investors with the opportunity to purchase property in developing real estate markets and thereby rapidly increase their investment growth potential,” Bowling notes.

Due to the fact that internationally owned property is virtually impossible to seize, be repatriated or interfered with by the investors’ home government, it is one of the most protected assets that any investor can acquire. “Owning offshore real estate is therefore an excellent way to guard ones wealth and maintain growth,” says Bowling.

A point to note, however, is that some Citizenship by Investment Programmes stipulate that the property cannot be sold within the first five years after purchase. “Investors looking into these programmes need to ensure that they are looking for a long-term property investment,” says Bowling. “The spin off on the other hand is the potential to benefit from capital growth and rental returns over the five year period.”

Real estate always has been and will continue to be one of the best investment opportunities that high net worth individuals can take advantage of. However Bowling points out that while there are several benefits to investing in an international property, there are a number of key considerations that an investor needs to decide upon before making a commitment. “The first thing for an investor to determine is what they want to achieve through the investment,” he says. “It’s important to have a sound objective with regard to the investment as this will largely determine which avenues and programmes to explore. Investors will need to know what the purpose of the purchase is, whether it’s for personal use, purely investment returns or perhaps even both.”

With so many Citizenship by Investment Programmes, investors have a good selection available, and can choose the Investment Programme which best suits their requirements, once they have been decided upon.

“Investors who are unsure of anything should seek the counsel of a professional who deals with foreign property investment on a daily basis. This will ensure that they gain the necessary insight to make an informed and profitable decision,” Bowling concludes.

For more information contact:

South Africa

James Bowling at Monarch & Co on 011 883 9018 or visit www.monarchandco.com