Investing Offshore in the Short Term

Caye International Bank

Investing OffshoreThere is more than one way to structure your offshore investing strategy. For many investors, the idea is to get in on the ground floor of an opportunity that is anticipated to grow and provide a steady flow of returns and dividends over the long term. While there is nothing wrong with this approach, you can also devote a little time to focusing on opportunities that promise quick and easy returns in a short period of time. In fact, investments of this type can provide the seed money you need to cover the costs of investing in assets that you plan on holding for a number of years.

The Benefits of Short-term Investments

Choosing to devote some of your attention to short-term investments can pay off in a big way. Assuming that you locate and acquire the right investments, the returns can begin to roll in within weeks or maybe even days. The infusion of cash that you receive from investments that you plan on holding for no more than a few months can go a long way toward helping to generate the funds needed for other types of investments.

With the right strategy, you can effectively buy a short-term investment, enjoy quick earnings, sell the asset for more than the initial purchase price and then use part of the proceeds to buy another short-term investments. Assuming you choose your purchases wisely, this process could continue indefinitely. As a result, you enjoy a steady stream of profits that also helps provide a comfortable standard of living.

There’s also the option of using the proceeds to fund the purchase of an asset that you want to hold for the long term. For example, perhaps you want to purchase a home in Belize that you will use for your retirement. The profits from a short-term investment could provide a significant deposit on that property. This means when you start looking into options for financing international real estate, the mortgage terms you can secure from a Belize bank such as CayeBank will be very competitive. After all, if the amount of the loan is considerably less than the current market value of the home, the banks will consider you an excellent risk.

What Kind of Assets Can I Hold for the Short Term?

The great thing about investing offshore (you can learn more about the benefits of offshore investing here: is that many assets are ideal for short-term use. Along with currency trading, you can also consider the possibility of flipping real estate. The latter approach calls for finding a piece of property that is distressed and also available for a price well below average market value in the area. After spending some time and money restoring the property, you could sell if for twice to three times the overall amount of your investment. In many cases, the entire process can be completed in less than two or three months.

Stocks are also worth considering as short-term investments. Try to focus on options issued by an international corporation that is expected to experience a sudden growth spurt. If the predictions come true, you can usually hold the shares through one or two dividend periods and then sell the shares for considerably more than you paid.

Balancing Returns and Risk

Investing offshore will always involve the need to consider the potential returns in light of the risk associated with a given asset. This is true with assets you plan on holding for a less than a year as well as assets that you expect to hold for a decade or more. In order to make this assessment, it is a good idea to gather all the information you can find about what could happen in the marketplace over the amount of time you plan on holding the asset. Determine how different market scenarios would impact the value of the asset and decide how much of a chance each of those scenarios has in terms of coming to pass. With those predictions in mind, you can determine if the amount of profit you could generate is worth the possible loss that would occur if certain events took place.

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Caye Bank

Caye International Bank Limited (CIBL) was granted an Unrestricted "A" Class International Banking License on September 29th, 2003 by the Central Bank of Belize and is regulated by the Central Bank of Belize which set the standards for liquidity and capital adequacy.

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