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- DIGITAL EDITION
Sun, Jun 26, 2022
As the influx of new digitized assets continues to soar, investors around the globe have more options than ever to diversify their wealth.
While prominent investment opportunities such as real estate, bonds, and mutual funds remain at the forefront, accompanied by the emergence of cryptocurrencies, investors should also look into side benefits to their investments that would potentially magnify their quantifiable and qualitative ROI - and this is where investment migration enters the fray, says Savory & Partners, an accredited agent for multiple governments where citizenship by investment is offered.
Residency and citizenship by investment (RCBI) has long been a popular undertaking amongst the global elite, and the diverse nature of investments under its umbrella makes it an excellent by-product for those looking to diversify.
In this article, Savory & Partners will look at the most prominent investment options of 2022, and how they can result in an investor and their families obtaining a second citizenship or residency.
One of the most favourable investments that has withstood the test of time, acquiring property remains a robust investment. Properties increase in value over time and can be rented out for excellent ROI.
When considering any property, one should take note of the location's and country's overall housing market to ensure they are making an investment that can yield maximum potential. Those who do that, but also make their investment in a country with an RCBI program, can not only expect considerable profits down the road, but also obtain a second citizenship or residency, says the article.
This venture is prevalent in two major countries: Portugal and Turkey. The EU nation of Portugal has a golden visa program, which awards investors and their family members with a residence permit that leads to citizenship within five years without the need to reside in Portugal for more than seven days a year. The minimum qualifying investment threshold is set at a reasonable 280,000 euros.
Turkey, on the other hand, awards investors and their families who purchase one or more properties valued at a total of $400,000 with direct citizenship, making it a profitable way to quickly get a second passport while making money.
As for the investment part of the equation, both nations boast an outstanding real estate investment environment. Portugal's housing market saw a year-on-year (YoY) increase in prices of 13.8% in 2021. That would theoretically mean a 280,000-euro property would be worth 318,640 euros the next year.
Turkey also boasts magnificent real estate appreciation rates, as its housing market grew a staggering 32.93% YoY in 2021. Investors who purchased one year ago saw their properties gain one-third of their overall value over a 12-month period.
Both these options not only provide investors with great diversification opportunities but include a global mobility factor to boot, says Savory & Partners.
Another excellent venture is government bonds. They are safe, secure, and easy to liquidate at the end of the holding period. Investors looking to diversify into government bonds can expect to make money in two different ways.
The first is through bond yield, as bonds produce an ROI depending on the country, holding period, and currency they are purchased through. Turkey is again another great option here, as its citizenship by investment program allows investors to qualify for naturalization if they make a $500,000 investment in government bonds in Turkish Lira.
The yield on Turkey's 5-year government bond was last announced at 27.675%, making it an extremely lucrative venture. However, investors must be willing to take on the risk of investing in Turkish Lira, which has been turbulent over the past two years, and could lead to loss, breaking even, or in the case of the past few years, massive profits.
St Lucia's $250,000 non-yield government bonds give investors a tax relief, while also qualifying them to obtain a robust second passport and citizenship that provides them with visa-free entry into the EU, UK, and many other destinations throughout the globe.
The recent dip in cryptocurrencies may seem like the digital currency is not as hot as it used to be, but this fluctuation is nothing new, and it has become common for investors to "buy the dip" - investing when the exchange rate is low to make a staggering profit later.
In terms of RCBI, cryptocurrency does not have a direct link as a qualifying investment. However, crypto investors can still obtain citizenship or residency by paying with cryptocurrency, as is the case in Vanuatu's citizenship by investment program or El Salvador's residency by investment scheme.
Another great option for investors in 2022 that doesn't require much travel, research, or effort in doing due diligence is investing in mutual investment funds.
Investors are lush for choice and can choose funds with differing levels of risk and profit, while also identifying funds that invest in their preferred areas or provide collateral against investments.
Those looking for secure funds with reasonable holding periods and massive government supervision should consider Portugal.
The Portuguese golden visa allows investors who make 500,000-euro investments into mutual investment funds overseen by the government's CMVM to qualify for residency. Applicants can choose between hundreds of options and obtain tax relief while also getting an EU residency permit.
The true value of an investment
The true ROI of any investment should factor in both quantifiable and qualitative benefits, and no venture in the world can match the total benefits of RCBI investments. They produce profit while also giving investors a massive boost to their global mobility and greatly enhance their lifestyle, says Savory & Partners.
* The information contained in this article/ website is not intended, and shall not be understood or construed as, financial advice. The information is not a substitute for professional advice.
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