Real Estate Without Borders

• Navigating Cross-Border Taxation for Real Estate Investors

  In this episode of Real Estate Without Borders, hosts Dave Hutch and Daniel Foch engage with CPA Sami to discuss the complexities of cross-border taxation for Americans investing in Canadian real estate. The conversation covers essential topics such as FATCA reporting requirements, capital gains taxation, the implications of the Foreign Investment in Real Property Tax Act (FERPTA), and the importance of understanding tax treaties. Sami provides insights into the documentation needed for tax purposes and strategies for optimizing tax on foreign investments, while also addressing challenges faced by investors in navigating cross-border partnerships and regulations.Americans need to understand domestic tax laws when investing abroad.FATCA requires reporting of foreign bank accounts over $10,000.FBAR filing is necessary for US citizens with foreign accounts.Buying real estate directly can be more tax advantageous than through a corporation.Capital gains tax rules are similar in the US and Canada.FERPTA applies to non-resident aliens selling US property, not US citizens.US citizens must report global income regardless of residency.Tax treaties help avoid double taxation between countries.Proper documentation is crucial for tax reporting and deductions.Investors should be aware of foreign buyers bans and their implications.

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• Is the global pension system going to collapse?

  This conversation delves into the pressing challenges of demographic decline and its implications for real estate investors. The hosts discuss the concepts of M1 and M2 money supply, the funding gaps in pension systems, and the strategies governments may employ to address these issues. They explore global fertility rates and their economic impact, drawing parallels between pension systems and Ponzi schemes. The discussion concludes with insights on real estate investment strategies in declining markets and the importance of understanding demographic trends.Demographic decline is a significant challenge for real estate investors.M1 money supply represents liquid cash, while M2 includes less liquid assets.Pension systems are facing severe funding gaps due to demographic shifts.Governments may inflate asset values to manage pension obligations.Falling fertility rates globally pose economic risks.Pensions can be likened to Ponzi schemes due to funding structures.Investors should focus on markets with younger demographics.Canada's immigration policies have significantly impacted real estate prices.Understanding demographic trends is crucial for investment strategies.Real estate investments may be influenced by government interventions.

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• Pending foreclosures, trade war, bond yields, and more.

  In this episode, hosts Dave Hutch and Daniel Foch delve into the complexities of the housing market, focusing on the roles of Fannie Mae and Freddie Mac in preventing foreclosures, the impact of tariffs on economic growth, and the intricacies of bond yields and mortgage rates. They explore various foreclosure prevention strategies and discuss the government's role in stabilizing the housing market amidst political dynamics and economic strategies.Fannie Mae and Freddie Mac play a crucial role in preventing foreclosures.Tariffs can create short-term chaos in the housing market.Mortgage rates are influenced by bond yields and government policies.Foreclosure prevention strategies include loan modifications and forbearance plans.The government has a significant impact on housing stability during crises.Political strategies can affect economic outcomes in the housing market.Understanding bond yields is essential for grasping mortgage rates.The accountability of borrowers has changed in recent years.Government waste in office space is a significant issue.Collaboration between nations is essential for economic stability.

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  37:00
• The best & worst housing affordability worldwide

  This conversation delves into the global housing affordability crisis, examining trends across OECD countries, the impact of foreign investment, and unique case studies from Italy and Japan. The discussion highlights the challenges faced by first-time home buyers, the influence of high interest rates, and the role of population growth in housing markets. The hosts also explore innovative solutions like Italy's one euro house initiative and Japan's abandoned homes, providing insights into potential future trends in real estate.Housing affordability is a pressing global challenge, especially for young people.The US has experienced a significant decline in housing affordability, ranking third worst globally.First-time home buyers in the US are at a historic low, with many unable to enter the market.High interest rates are a major barrier to homeownership, impacting buyer sentiment.Global capital flows are increasing as people seek better economic opportunities.Supply constraints in construction are keeping housing prices elevated in many markets.Italy's one euro house initiative aims to revitalize small towns and combat demographic challenges.Japan faces a unique situation with over 8 million abandoned homes due to strict immigration policies.Housing affordability has improved in Italy, with a 13% decrease in house price to income ratio.The conversation highlights the need for further exploration of innovative housing solutions in different countries.

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  18:34
• Trump proposes a $5 million GOLD CARD visa

  In this episode, Daniel Foch and Dave Hutch discuss the controversial proposal of a $5 million gold card for wealthy foreigners to gain U.S. residency, comparing it to existing golden visa programs worldwide. They explore the potential economic benefits, such as foreign investment and job creation, as well as the criticisms surrounding housing market distortions and ethical concerns. The conversation also touches on the implications for U.S. national debt and the broader immigration landscape. Trump's gold card proposal aims to attract wealthy immigrants. Golden visa programs can boost local economies through foreign investment. Critics argue that these programs distort housing markets. The EB-5 program has undergone significant reforms since its inception. Countries like Canada and Portugal use immigration to grow their populations. High net worth individuals contribute significantly to consumer spending. The U.S. housing market faces affordability challenges. Golden visa programs can lead to gentrification and displacement. Economic volatility can arise from reliance on foreign investment. Global comparisons reveal mixed results for golden visa programs.

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