Putting your money into foreign real estate is a more appealing strategy right now than it has ever been. Real estate has always made sense to me as an asset allocation, but I'm more persuaded today than ever that foreign property should be part of every investment portfolio. You can't watch everything going on in the United States right now and not be persuaded that holding real assets in the form of real estate outside that country isn’t a very good idea.
As you know, thanks to the new U.S. HIRE Act, currency controls in the United States have been seriously tightened. When this legislation takes full effect, foreign financial institutions will be required to report on the investment activities of U.S. citizens.
It's been increasingly difficult for some time for an American to open a bank account overseas. Some banks have taken the position that they don’t want to do business with Americans, period. Not worth the hassle. Some banks are even kicking current American clients, even longtime American clients, to the curb, unceremoniously closing their accounts.
Options for Americans to protect their assets abroad are going to continue to diminish. If you aren't already holding a sizeable portion of your assets outside your home country, we strongly recommend that you make this a priority agenda, and a portfolio of international real estate holdings should be an important part of your strategy.
First, if you're an American, it is one of two assets you can hold offshore without triggering a reporting requirement to Uncle Sam (the other is gold and other precious metals). The real estate you hold in another country is your own business.
Plus, it's unseizable. The IRS might be able to take your foreign bank accounts (the new legislation makes this easier than ever). But how are they going to take your condo in the Caribbean?
If you want assistance in acquiring real estate in the Dominican Republic, please contact us.
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