Do you have an asset that you are not utilizing?
While we have used Jamaica as the case study, this strategy can be used in any country around the world that gives its citizens benefits to encourage investments.
My grandfather was born in the humble village of Highgate, St. Mary in the middle of Jamaica. And while its a bustling agricultural town with a nice view of the mountains, its not a happening tourist location and easily dismissed by myself and my 30 cousins spread over the US and England.
Until……we discovered that we were entitled to the housing benefit offered to all Jamaican citizens or children and grandchildren. Well, we had to discover more.
And now more than ever it is interesting that persons are seeking to get any benefit that will help them build out their investment options.
If you can get an investment benefits from your parents or grandparents citizenship, why not?
Globally, real estate has held its own in this COVID time.
And governments have offered incentives to their citizens to build or buy property. In the US there are persks such as the 1031 exchange which is really a tax free way to acquire a new home when you sell your old home. Check out the FF playlist to see discussions in previous episodes.
Of course, many persons in the United States have ties to other countries through birth or their parents and grandparents.
So are you leaving an opportunity to profit by acquiring more real estate with benefits given to citizens? Could you simply get a passport from your parents or grandparents home country and then benefit from a housing grant?
Let’s talk with Robert Taylor, attorney at law to discuss how that would work.
Let’s use the country of Jamaica as an example.
Citizens are entitled to a low interest rate (think as low as 1% on a Jamaican dollar loan) from the National Housing Trust. The National Housing Trust (NHT) was established in 1976 with the mission to help Contributors who wish to build, to buy or to repair their homes.
Here is a typical scenario. The client is the child or grandchild of a Jamaican citizen. So first we look at how to get a passport if you were born in another country.
An applicant qualifies for Citizenship by Descent where:
A. (i) She / He was born outside of Jamaica before the 6th August 1962
(ii) His / Her mother or father on the 6th August 1962 became or would have, but for his/her death, become a citizen of Jamaica.
B. She /He was born outside Jamaica after the 5th August 1962 and whose mother/father at the date of his/her birth is/was a citizen of Jamaica by Birth, Descent or Registration by virtue of marriage to a Jamaican.
The application form which is obtainable at PICA, 8 Waterloo Road, Kingston 10, the Jamaican High Commissions, Embassies and Consulates as well as online at www.pica.gov.jm, should be completed and submitted along with the certain original documents.
You might be thinking that this could be a potential headache to get all these documents if you don’t live in Jamaica.
What are the options available?
Applications may be submitted by the following:-
• Adults acting in their own right to the application
• Parents on behalf of minor children
• Parents may submit applications on behalf of their adult child with his/her authorization
• Legal Guardian
• Attorneys making formal representation on behalf of parent or legal guardian (Persons who hold law degrees and are not Attorneys may not submit applications on behalf of anyone).
Let me help you take control of 12 areas of your financial life.
Now that you have a passport, its about getting the housing grant.
To become an Overseas Voluntary Contributor (you must be a permanent resident or a citizen of that country), you must first register with the NHT. To register, you must complete the “Voluntary Contributor’s Application Form”
You will need to ensure that you register with the Tax Registration Centre to obtain a TRN, because this will be needed for the registration process. Once you have completed the application form you should come in for an interview (if you are unable to attend an interview then you will need to submit a letter of authorization for your representative/agent to act on your behalf, such letter should be signed, stamped and dated by a Notary Public or Justice of the Peace (J.P.).
The following documents are required in order to conduct your interview: –
Tax Registration Number (TRN) Card
National Insurance (NIS) Card
Valid (not expired) Photo Identification (such as National Identification, Driver’s License or Passport)
Initial Monthly Payment- (3% of proposed monthly income stated on application form)
Proof of Overseas Residence- (Permanent Resident Card, Indefinite Card, Passport for Country of Residence
Proof of Age- (Birth Certificate, Passport or Driver’s Licence)Photocopies of any of these documents will need to be signed, stamped and dated by a Notary public (for overseas residents) or a Justice of the Peace (for local residents).
If you are acting on the behalf of someone as a representative, you will also need to present a letter of authorization, signed, stamped and dated by a Notary Public or Justice of the Peace (J.P.).If you have never contributed to the NHT, your waiting time to access a benefit upon registering with the NHT is 2 years. However, please note that your monthly contributions must be made on time for the 12 months immediately preceding the date of your loan application. That is, your payments must be made before the 14th of the following month.
