Picken believes there are three main factors you must consider when investing offshore
Investing offshore has been made vastly easier with advances in tech, and for companies like Wealth Migrate, these options are now more accessible for investors through its online platform. Wealth Migrate has been trying to achieve this by cutting out the middleman and lowering costs for investors, while increasing investor confidence through the transparency and accessibility of its marketplace deals [1].
Scott Picken is not only the CEO and founder of Wealth Migrate, he also has 20 years of experience in this field, and authored a book, Property Going Global in 2014 [2]. The book is based on Clem Sunter’s theories on scenarios, flags, and probabilities, to cater for a safe means of wealth creation using global offshore investments [3]. Picken’s journey into property investment has been motivated by the desire to level the playing field for all investors. According to Picken, in 2016 an estimated 49% of wealth worldwide was held in property, with only 12.7% of the global population being able to acquire it [4].
Picken believes there are three main factors you must consider when investing offshore:
1. Understand your motivation for investing offshore
Investors may have a combination of reasons for growing their wealth offshore, whether it’s wealth protection, a back-up plan, or for peace of mind [5].When planning to invest offshore, Picken emphasises two important points − having the right information and partners [6]. As simple as this is, investors can make decisions based on quick emotional responses, but without properly assessing all the future consequences from tax implications to legal restrictions.
2. Do the proper research and have a strategy for your offshore property investments
Real estate investments are made for long-term gains, as such you should ensure that any property you acquire “is in a location that will remain important and desirable for ten, twenty, even fifty years into the future, regardless of what is in store [7].”This was in part why Picken wrote his book, a four-dimensional model based on Clem Sunter’s scenario-planning techniques, which provided the basis for his fundamental theories on the Global Investment Due Diligence System. This framework gives an investor a practical overview of the offshore investment process and what to be aware of.
3. Diversify your investments across different asset classes
This sound advice was repeated in The Wealth Report by Knight Franks, which found that the reasons why their clients had profitable asset portfolios was due to diversification [8]. While occasional losses may still occur, this was balanced by the growth in other asset classes or geographies, and proved to be a good long-term investment strategy.
If you want more detailed information on offshore investing, Picken is hosting a free investor breakfast talk in June 2021. This discussion will provide insightful guidance for investors that are interested in acquiring an offshore property portfolio, with Picken analysing the pertinent financial risks, tax structures, and legal regulations.
As tech evolves, it allows investors to take advantage of the opportunities it provides for investing offshore through online platforms. Wealth Migrate is leveraging this, to give investors with better accessibility to diverse property options, by partnering with quality partners and offering cost-effective deals.
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