| Immigration If immigration is foremost in one's mind, than it may be prudent to purchase an investment property now in order to lock in the price; it does not matter if it is not the final destination of choice. By buying into the current property and locking in the price, the investor has effectively hedge himself against future price increases; it is similar to entering into a forward contract. He can subsequently sell the property and buy another one in the location of his choosing when he is ready to move. Besides price, the financing aspect of the investment is equally important. Finance for the property should be obtain while the investor is still in his productive years. Banks will easily grant loans to those who are economically active when the loan is taken; even though at that time the prospect is overseas working. The situation will be radically changed if the retiree is to arrives fresh from abroad and tries to obtain a loan to purchase a property. The banks will not grant the loans unless the retiree has substantial assets or income to service it; timing of the loan and purchases are therefore crucial. By structuring the financing of the property years in advance of retirement, the retiree can cumulate paper losses on the property that he can use to offset against future income. Having a tax advantage is subsidiary to the purpose, but it will be an added bonus given that the retiree may only receive passive income from other sources to sustain himself during his golden years. Any saving in taxes will go a long way. |
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