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A well-diversified wealth portfolio through offshore property ownership is a smart financial move that contributes to the development of a long-term, mature international investment horizon, yielding higher returns and privileges.
Most investors tend to be concerned about which asset classes to invest in. However, this leads them to overlook the importance of the location since most of their investments are made in their native countries where they have a better understanding of the market fluctuation, becoming a limitation to spreading the wealth!
Asset diversification is a key investment strategy, yielding higher ROIs, maximising tax strategies, establishing investment horizons, maintaining a second residence or citizenship, strengthening equity, and mitigating overall risks.
In a globalised world where economies are interdependent, developing an investment strategy that minimises potential losses in times of a bear market is highly recommended and a must-need investment rule. Diversifying your portfolio internationally lies in the following common statement: “Never put all your eggs in one basket”. Building equity across international borders is key to successful investing in the 21st century, which opens up a wide range of investment opportunities and privileges.
The main difference between empire builders or tycoons to novice and intermediate investors is diversified asset allocation instead of investing in one country. Recognising multiple factors can contribute to economic instability or decline in any part of the world, including currency fluctuations, international relations, and national management. Purchasing different properties in the same area becomes risky in the absence of certainty.
To increase benefits and yield higher returns, mastering a well-diversified asset portfolio is essential. However, this depends on market conditions and competition. In order to determine whether an investment should be made in a developed or emerging economy, it is necessary to conduct research and analysis. Generally, a developed nation’s real estate investment market is defined as one with advanced economies, superior infrastructure, mature capital markets, and higher living standards. Emerging markets, on the other hand, are experiencing rapid growth and development, attractive rental income, and stronger capital appreciation, but with lower currency values and household incomes. Secondly, consider what asset classes have differing correlations so that if one moves down, the other tends to counteract it.
Various investment options are available, including mutual funds like stocks, bonds, and money market instruments, among other assets. Still, they may be associated with hidden costs depending on the commission rate fixed for the professional money management service. A second option is a REIT (a real estate investment trust, which is a company that owns, operates, or finances income-generating real estate) but depends on the companies’ conditions to generate capital appreciation, a steady income stream through their range of types of properties and its seamless stewardship.
The co-ownership of a cutting-edge investment formula based on luxury hotels and real estate properties combines the best of both industries. There is no doubt that real estate is the most important source of wealth in the world; it represents four times the global GDP, while the hospitality industry represents 5.5% of the global GDP, even after the pandemic. A global and mature investment conglomerate can connect you to the leading hotel networks worldwide, providing you with access to the finest investment and destination options without needing extra money for financial and diversification counselling while still being part of the world’s most solid industries.
An excellent example is the Real Estate-Hospitality investment strategy managed by Tayrona Capital, an investment and development company that selects, owns, designs, constructs, operates and manages an exclusive worldwide luxury asset portfolio under its prestigious Sagana Collection brand. In addition to being a member of Tayrona Capital, which manages 25 countries’ sovereign wealth funds’ trusts, the company is driving the real estate business with a green-social vision on an international scale, connecting it to the hospitality and global tourism industries.
Its leisure property business, luxury villas and suites from hotels with a median standard occupancy of 86%, is provided by Tayrona Capital’s primary investment line Privilege Hotel Ownership (PHO), which guarantees high yields based on the location and market of the selected property for a low initial investment. A rental property with an estimated cost that starts at USD 1,000 per night can generate from 5% to 20% annual yields. Furthermore, the company grants title deeds excluding hidden fees, lodging in over 200 luxury hotels worldwide, discounts on hotel services and facilities, and a lifetime experience tailored to your expectations and desires provided by Privilege Luxury Club (PLC) for each trip.
By introducing new strategies with fair investment rules for both parties, the company Tayrona Capital supports its clients by consolidating a high-yield portfolio of profitable properties in the most acclaimed destinations to invest in, such as Indonesia, Maldives, and Thailand.
Sagana Ubud:
A natural paradise, Indonesia-Bali, is also a financial one.
The property values here are affordable, creating a currency valuation that allows you to invest more, providing financial security, and strengthening your wealth. The business environment is stable and friendly in terms of government, laws, and regulations. It is also a top destination worldwide, with more than 6.3 million international tourists annually attracted to its natural marvels and rich culture.
Ubud, a district in Bali, was named the world’s 11th most friendly city by Travel + Leisure at the beginning of 2017. Conde Nast Traveller magazine provided a similar status for this place in the early 2010s. The Ubud district is getting popular not only for the monkey forest and rice fields but also for yoga enthusiasts. It is a promising land for eco-sustainable real estate-hospitality investment with 3 million foreign tourists per year.
The Maldives:
The Maldives is another destination that has continued developing a prosperous investment scenario for leisure properties during the last twenty years. With a strong and stable economy and environmental security thanks to the government’s pro-tourism vision. Creating pro-market and liberal policies, appealing to overseas investors to own a property of its luxurious resort complexes. A place with impressive economic performance and economic diversification that facilitates and boasts promising business opportunities supported by its significant tourism industry, accounting for 28% of the national GDP.
Thailand:
Thailand is another of the Asia region’s largest economies. Its location makes trading easy, but also thanks to its modern infrastructure for airports, seaports, and the necessary network systems for opening up new business prospects. With affordable prices and high ROIs, this country offers luxury properties and world-class hospitality. The average price for properties is lower compared to developed countries.
Below is a comparison of average property prices (120 square meters) in Thailand with average prices in developed countries.
Country
1. Thailand
2. Hong Kong
3. United States
4. United Kingdom
Average price for properties of 120sqm
1. $5,266
2. $28,570
3. $17,191
4. $21,179
The Maldives:
There is a solid local and international demand for real estate properties. In tourism terms, the country has welcomed along this year 7 to 10 million tourists; before the pandemic started in 2019 the number of tourists reached around 40 million, generating over $60 billion in revenue.
Foreign property may also have a variety of tax forms and reporting requirements in addition to higher returns. It depends on how the property is operated and whether it is owned by a foreign entity. It is also possible to protect your portfolio from some demanding laws, regulations, and governments through asset protection. As a result, offshore properties serve as a form of government insurance when economic hardship or political instability occurs.
As soon as a process for fixed economic investment in the host nation is completed, efficient tax schemes can be provided by holding a second residence or citizenship. Enabling tax deduction and/or bank secrecy, global mobility, visa-free travel, improving education, health, and safety standards, and expanding business opportunities.
The investment conglomerate Tayrona Capital offers holistic-investment lines that endure the risk associated with high investments, and as part of its (CBI) Citizen Investment Programs, investors will have access to a tangible asset with guaranteed rent as well as the opportunity to acquire second citizenship. The investment-lifestyle package includes global mobility as well as the right to live, work, study, and receive quality healthcare in the host country, without incurring any outlying additional costs.
Where citizenship or residency is not granted by the host country, and the investor withdraws from the real estate component. Under Tayrona Capital’s CBI program, investors are guaranteed a 120% return on their investment; meaning, applicants will either receive citizenship or a return on their investment.
It is not necessary for applicants of the Residence by Investment program to limit their lives and business interests to one country if they are expecting to expand their business and wellness opportunities. Individuals who participate in residence-by-investment programs, also known as golden visa programs, are provided with the option of relocating, working, studying, and receiving healthcare in their new residence countries.
Below is a Sagana Malaysia-based application for this residence program by Tayrona Capital.
Sagana Malaysia (Built)
Price list of Villa
USD $1,116,000
Reservation Fee
USD 25,000
Down Payment
USD $223,200
Guaranteed Rent 10%
Through the Citizenship by Investment program, families have the privilege of acquiring alternative citizenship, giving them the right to travel freely to different destinations and settle in another country according to their needs.
Below is a Malta-based application of this citizen program by Tayrona Capital.
Malta:
Malta (Built) Guaranteed Rent 7%
To thrive as an investor in the 21st century, a well-diversified international asset portfolio is essential to building solid equity that will adapt to uncertainty and multiple changes in economic, social, environmental, and political terms while yielding higher returns. Increasing business and lifestyle opportunities in dream countries can be achieved by obtaining a second residence or citizenship, which protects assets, facilitates global mobility, and maximises tax efficiency.
By: Valentina Bohórquez
Publication Date: September, 2022
Tayrona Capital is a multinational investment conglomerate focused on the hospitality, entertainment, and tourism industries, offering returns on investment and unparalleled experiences through solid financial ventures that foster sustainable economic growth across the globe, while keeping true to a vision of a lifestyle of luxury and freedom.
Copyright ® 2024 Tayrona Capital.
