It’s an astute financial mind that uses the global commercial market to set the grounds for their continued financial growth instead of just their domestic markets. Ultimately, money, as the universal equivalent, is the path to living a better life and all successful individuals realize this one basic truth. My purpose really isn’t to convince anyone to make more money, it’s to present the idea that there’s an entire world’s worth of financial opportunities you can capitalize on.
Interestingly enough, there’s another aspect to foreign investments beyond financial growth that people ignore—moving your funds to offshore locations. There are more advantages of investing in offshore locations than I can count, the business opportunities are aplenty, tax rates are low and you might even get a second citizenship. I’ll discuss some of the most advantageous investment opportunities that will help you make a fair bit of money.
Real Estate In Offshore Locations
There are two potential advantages of investing in offshore locations—first, you might make a fair bit of money and secondly, you might get a second passport too. With the growth of global tourism, there are plenty of countries around the world that are looking to develop tourism-specific real estate. Countries like Vanuatu and Cyprus have tourism sectors that are burgeoning with potential.
Cyprus has one of the most robust real estate sectors in the world, working to help stimulate the development of tourism infrastructure in the country. In recent years, the state has allowed more building permits than ever before and most of these are for the construction of new hotels. Vanuatu, similarly, is hoping to develop its tourism sector to improve its economy in the aftermath of the cyclone Pam. The country receives tourists from both New Zealand and Australia, but now is becoming a preferred destination for tourists around the world. Real estate developers from around the Pacific are rushing to Vanuatu to help develop hotels and resorts that will be worth a lot of money in a few short years.
The best part about investing in either of these countries is the possibility of getting a second passport. Both Cyprus and Vanuatu offer investors citizenship’s in return for investing in the country’s real estate infrastructure, so you get great profits and really strong passports to boot.
Foreign Mutual Funds, Stocks And Commodities
There are plenty of international mutual funds and foreign stock markets that you can invest in to make a good return on investment. A lot of people also choose to mix up their portfolios to also include commodities and precious metals to hedge against the risk of losses. The economic theory stipulates a converse relation between stocks and commodities, because of risk-averse investor behaviour. In the event that stock markets crash, funds are moved to the commodities market to prevent money losses and the commodity markets rise in value. The rise in commodity values can offset the losses made in the stock market to keep you on even grounds.
Additionally, some foreign investment markets are easier to get into than others and are far more robust than domestic financial markets. Markets in developing economies like those in South America or Asia like India and China are some of the most vigorously growing financial markets in the world. You could ride the wave of growth of these nations to make a fair bit of money in the process. You should invest in foreign mutual funds and try to intersperse your investments with those in commodities to make more money than before. India presents a great investment opportunity especially since the government slashed corporate taxes down to 22%—an attempt to attract greater foreign investment than before.
Teak As An Investment
A lot of people know about how gold and silver are highly valued and have been highly valued throughout history, but they don’t know much about teak. Teak is a type of wood that grows on trees in coastal regions like India, Sri Lanka, Cambodia, Myanmar and recently in Nicaragua and Panama. The wood is highly valued throughout the world, especially western civilization because of its durability and its rarity—much of its demand is intact and still persistent.
Now, instead of demand from the west, India, China and much of the south and east Asia demand Teak. Earlier in the decade, Myanmar banned all teak exports to the rest of the world in the midst of a real estate boom throughout Asia. Considering rising populations and the growth in demand for real estate, Asian teak demanded shifted to South America where countries like Panama, Paraguay, Nicaragua and some others now cater to much of worldwide teak demand.
Panama and Nicaragua have introduced citizenship by investment programs that award investors with residency in return for investing in reforestation programs in the countries. Since these two countries are catering to both China and India, two of the largest economies in the world, there’s a lot of profit potential in investing in teak plantations in Nicaragua and Panama. You should consider investing in teak because it’s one of the safest commodity investments known to man. Gold and silver markets are less volatile but there’s also little growth in these markets—teak valuations, on the other hand, have been increasing consistently over the past few years.
Financial managers and advisors rarely make a guarantee about high returns on any investment decision. Realistically, there are no investments that guarantee a great return and a profit. However, it takes some insight into global socio-political and economic currents before one can make an educated guess about what the best investments are. Considering population booms in Asia and the growth of global real estate markets, tropical hardwood; like teak, will always be a safe investment. These trends are bound to continue and considering the shift in teak supply from Asia to South America, investments in teak can bring you a lot of financial benefit and perhaps also second citizenship.
Interested in learning more about Teak and Investing in Panama or Nicaragua? Here is the Ultimate Guide to Investing in Teak Wood.
For everything you ever wanted to know about the offshore market, you must read The Ultimate Guide to Going Offshore. Download it for your personal library, you won’t regret it.
Here is one of the Expat Money Show‘s top podcast. Rachel Jensen from ECI and Mikkel Thorup talk about Buying international real estate in the Caribbean and Latin America.
Here is an amazing webinar with Rachel Jensen from ECI about investing in Teak. Could be the best 90 minutes you ever spend.
I hope you enjoyed this article on High Yield Foreign Investment Opportunities: Why Teak Industry Needs To Be Your Top Choice.
About The Author
Mikkel Thorup is the host of The Expat Money Show podcast and Director of Content at Escape Artist. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. He has spent nearly 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran. His goal is to help people just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. For more information on his legal (but creative) tax strategies for Expats watch this free video.
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