media real estate rentals
media real estate rentals
Should you Invest in Overseas Real Estate?
Here are two propositions for you – you decide which one you like better.
Proposition One: Invest in spectacular real estate in an exotic location like Bulgaria, Malaysia or even a condo on a cruise ship.
Proposition Two: Put your money into a rental property investment far from your home, in a country where you don’t speak the language, don’t know anything about the laws or the government, and can only get to with two days of travel at a cost of more than $1,000.
The first proposition sounds a lot better, doesn’t it? But these are actually just two different ways of looking at the same deal. Sales pitches for overseas property investments focus on the “heart” aspects of the proposed deal – the glamour and status of owning property in a place your friends have never even heard of, much less ever visited. The “head” aspects, which go much further to determining if you will recover the cost of your original investment, or earn a tidy profit, aren’t mentioned.
On a purely rational basis, investing in your own country usually makes much more sense than investing overseas. Overseas investments only make sense in certain very special cases, for a small percentage of investors that meet certain qualifications (which I’ll describe later).
I am writing from the perspective of an American investor, so if you don’t live in the United States, the same conditions apply – but in reverse. I think American investors usually should invest in the United States, for common-sense reasons. On the other hand, if you live in Europe, a Bulgarian investment probably makes much more sense than investing anywhere in the United States. It will certainly be less risky on every level.
(I am also not singling out any particular overseas area as bad for investment. I picked these examples at random, but they are all heavily promoted for property investment.)
The added risks in overseas investing come because you must rely much more on the honesty of both the property seller, and the property manager. (For most overseas investments that are promoted heavily in the US, the seller and property manager are partners, or even the same company.)
Consider: your first job in evaluating a deal is to look at the area surrounding the property. If you are buying year-round rental property, you want the area to show strong job growth, because job growth is the single biggest indicator in predicting future growth in real estate values. If you are buying vacation property, you want a relatively undeveloped area that is becoming “hot”, with a stable local and national government, good travel options, and very good weather.
If the potential deal is in your country, you have options to make an independent review. You can find stories about the area in local and national media, read up on the local government, and even call local experts. You can even look up complaints and comments about the seller and property manager.
With an overseas investment, you may not be able to find newspapers and web sites that cover the area and report in your language. And good luck calling a local official or expert for information!
Long-distance property investors should always visit the areas where they are investing. There should be at least one visit before the first deal is made, and another visit every six months to a year afterwards to make sure the property is being managed and maintained properly. Just the travel costs of these visits make many overseas investments financially unworkable.
Consider that you can get from one corner to the other of the US for less than $400 at almost any time of the year. On the other hand, going from Boston to Kuala Lumpur, Malaysia, costs $2,300 – minimum. And the cheapest flights take nearly 42 hours each way.
Faced with these added costs to the bottom line, many overseas investors simply choose not to visit their investments, before or after making the deal. Once again, they must rely on the honesty of the seller and the property manager.
Even if the seller and property manager are honest, overseas investors may run into huge problems because of legal and accounting issues. Investors often shy away from certain cities in the US because they have ridiculously biased landlord-tenant laws. They simply don’t know which overseas locations have the same laws or worse.
There are some cases when overseas property investments make sense. If you have a special connection with an overseas area, you will be much more likely to make a smart investment. That is, if you are from a certain region or country, or have other reasons to visit there frequently, you’ll know the area far better than other potential investors will. You probably speak the language and have friends who can answer your questions, or even visit your property in your absence.
In addition, because you are visiting the area regularly anyway, the travel costs of going there won’t be a “real expense” associated with the property investment. You may well decide to record that expense against the income from the investment, but you were planning to go to Bulgaria or Malaysia or Costa Rica anyway.
Even if you don’t have this local connection, there is another potentially good reason to make that overseas investment. It’s important to remember that many foreign countries are showing remarkable economic growth, much higher than the United States. For that reason, an overseas investment in one of those countries may promise annual returns in profit plus increased equity that are far better than you’ll get in most American cities.
That means that if you are the kind of investor who doesn’t mind taking a lot of risk for potentially a lot of reward, an overseas investment may work well. Or, here’s another way to look at it – why not use some of that extra money to mitigate some of the extra risk? Suppose an overseas investment promises you $15,000 per year in positive cash flow, against an up-front investment of $100,000. Spend $5,000 of that money doing extra due diligence to make sure the property deal works well, and will continue to perform well. Make another trip, find another expert, and do some additional research. You’ll still get a 10% return, but with far less chance of losing money.
About the Author
Brendan is the owner of Property Master property management software. Our rental property software runs on any Web-connected computer with full accounting, alerts, nearly 50 reports, and many other great features. http://www.pcpropertymaster.com.
Real Estate in India – Best Investment Option? Is it Rental Properties or Land/Plots?
Real Estate in India – Best Investment Option? Is it Rental Properties or Land/Plots, if one has to purchase a property in Delhi, Mumbai, Pune, Hyderabad, Bangalore, Goa, Chenna, Nagpur, Jaipur – how can you ensure a high ROI in the medium to long term? I have figured some apartment/houses on 2letservice.com and have to decide now!
As per http://realestatetimes.in, the property prices in India are highly inflated now, I suggest you wait for few more months. If you cannot, invest in land.
Orlando Rentals Club – Windermere Custome Luxury Real Estate for RENT
|
|
iHome iP43LVC Dual Alarm Clock Radio for your iPod/iPhone with Pillow Shaker (Blue) $75.95 Sla 12v 18ahupg 85977/d5745 sealed lead acid batteries (12v; 18 ah; ub12180). Specs: used in ups backup systems, spotlights, flashlights, exit lighting & other equipment; 12v; 18 ah; ub12180. Refurb: n. Returnable: y. Warranty: one year……. |
|
|
Dual Alrm Clck Rad Iphone/ipod Purple Charge Play Or Wake $91.77 iHome IP43UV Desktop Clock Radio IP43UV Clocks… |
|
|
Alex Super Baking set – 18 Piece Metal and Plastic Set $16.99 Measure, mix, prep, and bake some imaginary treats| This 18-piece set features a loaf pan, bear pan, heart pan, mixing bowl, rolling pin, whisk, measuring spoons and cup, pastry wheel, 2 star cookie cutters, 2 heart cookie cutter, and an oven mitt. Bon Appetit|… |
|
|
Passion of the Christ: Songs (Original Songs Inspired by the Film) $7.00 … |
|
|
Egyptian Hieroglyphs Made Easy $26.50 Learning and understanding of the ancient Egyptian hieroglyphic language. The hieroglyphic script was the longest lived and earliest form of the Egyptian language. Its use was limited primarily to religious and monumental inscriptions, whereas a more cursive script called hieratic was preferred for administrative and epistolary purposes. Hieroglyphic Egyptian employs pictures of objects, each with… |
|
|
Promised Land [CD-ROM] Queensryche’s follow-up to the double-platinum Empire is something of an acquired taste, but it’s well worth the effort. There’s considerable variety here; the heavy progressive-rock of “I Am I” and the ballad “Bridge” were hit singles, but there’s also the funk-inflected “Disconnected”, the edgy, spooky “Lady Jane”, and the piano-and-vocals “Someone Else?”. The title track is probably the stronge… |
|
|
Tiger Balm Analgesic Tiger Muscle Rub … |
|
|
Gecko Nasal Pad – Large, 4.12 Long $24.80 The Gecko Nasal Pad (formerly the Sleep Comfort Care Pad by Sequal) is intended for patients with Obstructive Sleep Apnea (OSA) who experience pain and discomfort on or around the bridge of their nose associated with using nasal or full face masks. The pad acts as a cushion between the patient’s face and mask, and is simply placed across the bridge of the nose under the mask. The protective polyme… |
|
|
Pureology Hydrate Conditioner 8.5 oz. $21.95 You can feel this premium conditioner working to moisturize, detangle and lock in colour. Multiweight Protein Complex, jojoba and shea butter impart excellent lubricity and liveliness to your hair. Contains an invigorating infusion of peppermint oils…. |
|
|
Scarface – Vinyl Wall Decals Murals Stickers Art Graphic – 44H x29W – by üBer Decals Better than wallpaper, wall stickers are a perfect way to decorate your room and express yourself. They are a fun, easy and removable decor solution. These stickers are pre-cut and will only take you several minutes to apply on any surface – walls, doors, windows, and more. Each of our designs come with easy instructions to follow. This is an original design from uBer Decals. All other sellers are… |
|
|
Swirly Tree 3 – Vinyl Wall Decals Murals Stickers Art Graphic – 45H x56W – by üBer Decals Better than wallpaper, wall stickers are a perfect way to decorate your room and express yourself. They are a fun, easy and removable decor solution. These stickers are pre-cut and will only take you several minutes to apply on any surface – walls, doors, windows, and more. Each of our designs come with easy instructions to follow. This is an original design from uBer Decals. All other sellers are… |
|
|
Modern Floral Bird – Vinyl Wall Decals Murals Stickers Art Graphic – 46H x29W – by üBer Decals Better than wallpaper, wall stickers are a perfect way to decorate your room and express yourself. They are a fun, easy and removable decor solution. These stickers are pre-cut and will only take you several minutes to apply on any surface – walls, doors, windows, and more. Each of our designs come with easy instructions to follow. This is an original design from uBer Decals. All other sellers are… |
|
|
Kuzy® – AQUA BLUE Keyboard Silicone Cover Skin for Macbook / Macbook Pro 13 15 17 Aluminum Unibody $1.00 Dress up your MacBook Pro in fashionable color, silicone protection now. *** Will Not fit MacBook Air 11″ ***… |
|
|
Kuzy – PURPLE Keyboard Silicone Cover Skin for Macbook / Macbook Pro 13 15 17 Aluminum Unibody $2.00 Dress up your MacBook Pro in fashionable color, silicone protection now. *** Will Not fit MacBook Air 11″ ***… |
|
|
Kuzy – Circles Blue/White Keyboard Silicone Cover Skin for Macbook / Macbook Pro 13 15 17 Aluminum Unibody $9.95 Dress up your MacBook Pro in fashionable color, silicone protection now. *** Will Not fit MacBook Air 11″ ***… |
|
|
Sony ICF-C05iP Clock Radio for iPod (Black) $39.95 With the Sony ICFC05iPBLK Clock Radio you can charge your iPod’s battery while you sleep. This Sony ICFC05iPBLK Clock Radio is the space-saving bedside accessory for iPod® and iPhone® users. Set the alarm to wake to the radio, iPod®, or a buzzer. The charging tray ensures both you and your iPod/iPhone® start the day with a fully charged battery. Plus, The Sony ICFC05iPBLK Clock Radio features … |
|
|
Sharp LC60LE835U Quattron 60-inch 1080p 240 Hz 3D LED-LCD HDTV, Black With the introduction of the LE835 Series 3DTV, Sharp once again reinforces its leadership in LCD and LED technology. Sharp’s proprietary QuattronTM System produces the brightest 3DTV images with reduced “crosstalk blurs” and Spacious 3D Sound to complete the 3D experience. Additionally, the proprietary AQUOS LED system comprised of the X-Gen LCD panel and UltraBrilliant LED, with a newly enhanced… |
|
|
Omaha Steaks Prime Rib Roasts Prime Rib Roasts… |
|
|
KIKE CALVO photo illustrations FREAKLANCES Collection – Freaklance Fausto with bike graphic tablet and keyword – Coffee Gift Baskets – Coffee Gift Basket $44.99 Freaklance Fausto with bike graphic tablet and keyword Coffee Gift Basket is measuring 9x9x4. Contains 15oz mug, BONUS free set of 4 coasters, biscotti and 5 blends of gourmet coffee. French Vanilla, Kenya AA, Decaf Colombian Supremo, Chocolate and Italian Roast Espresso elegantly presented in our signature black planet coffee gift box. A very nice and thoughtful gift for any occasion…. |
|
|
Betty Lous Organic Harmony Hippy Happy Apple Bar Case Pack 24 – 683021 $116.33 1.75 oz bar. Vegan. USDA organic. Ingredients: organic apple cinnamon granola [organic oats, organic maple syrup, organic oat flour, organic crisped rice (organic brown rice, malt syrup - GF, sea salt), organic brown rice syrup, organic walnuts, organic sunflower seeds, organic expeller pressed high oleic sunflower oil, organic unsulfured dried apples, organic cinnamon, organic vanilla, sea salt],… |
|
|
Green Toys Sand Play Set $11.00 Kids will ‘dig’ building castles and hunting for buried treasure with the environmentally friendly Sand Play Set from Green ToysTM. Made of recycled plastic, this classic 4-piece collection of tools consists of a bucket, sand castle mold, shovel and rake. Made in the U.S.A from recycled plastic milk containers, which helps save energy, reduces landfill waste, and lowers greenhouse gas emissions, a… |
|
|
Alex Toys Draw like A Pro $35.12 A fun and easy way to draw…just turn down the lights, switch on the projector, insert a preprinted slide and trace away| Comes with 124 slides, 6 markers, 10 sheets of paper, and a flip book…. |
|
|
Power Wheels Dune Racer $249.98 The Power Wheels Fisher-Price Stinger XS is a 2 seat, 12v BPRO with large off road tires. This cool dune buggy’s main feature is Monster Traction which delivers superior terrain performance versus other BPROs. * The Power Wheels Fisher-Price Stinger XS is a 2 seat with front storage comparment and seat belts for added play. * Drive two forward speeds 2.5-5 mph and 1 reverse speed 2.5 mph. * Incl… |
|
|
KONNET iCrado Original, Stylish Metal Charging Dock / Cradle / Stand for iPhone, iPhone 3G, 3GS and iPod (Black) The KONNET iCrado is an easy to install cradle for your iPhone or iPod. With its unique distinctive design, it demonstrates the userâs personal style. The front is designed with a wide opening to give users the quick convenience of charging the iPhone or iPod without removing the protective case. The iCrado has a dedicated port to fit the Appleâs 30-pin USB cable to charge and sync the i… |
|
|
HYUNDAI SANTA FE 2010-2012 SUV Trucks Auto Center Armrest Console Cover Center Armrest covers protect, renew and add comfort to the center console of your vehicle. This cover fits a 2010-2012 HYUNDAI SANTA FE. Picture shown is of an example of our product on a center armrest. Cover is made from a fleece fabric and is machine washable… |
|
|
TOYOTA CAMRY 2000-2002 Car (not pictured) SUV Truck Van Auto Center Armrest Console Cover Center Armrest covers protect, renew and add comfort to the center console of your vehicle. This cover fits a 2000-2002 TOYOTA CAMRY. Picture shown is not of your vehicle but an example of our product on a center armrest. Cover is made from a fleece fabric and is machine wasable… |
|
|
Rocket Dog Women’s Memories Ballet Flat $39.95 Create new casual day memories with this flirty and modern ballerina flat featuring a step-in and go design, thai silk detailing and ruched round toe with bow accent. By Rocket Dog Product Information • Heel Height – Flat • Material – Thai Silk • Toe – Round Final sale, no exchanges, no returns. CALIFORNIA PROP 65 WARNING: Bakers strives to provide safe and environmentally friendl… |
|
|
Nurse Mates Women’s Pepper Oxford $54.00 • Spice up your shift with this sporty lace-up • Easy-care synthetic upper • Padded collar and tongue • Comfortable fabric lining • Pillow Top⢠cushioned footbed • Flexible rubber sole … |
|
|
Stacy Adams Men’s Sabola Slip-On $85.00 Sizzling designer style is yours when you step into Sabola Tasseled Loafers from famous Stacy Adams! SAVE BIG! Put your best foot forward! Stacy Adams has built a 135-year reputation of excellence in fashion-forward footwear, and sharp Shoes like these leather-lined Loafers are a big part of the reason why! Each comfy pair has a genuine snakeskin toe box with crocodile-print leather uppers. The cu… |
|
|
SE Glow-in-the-Dark Brass Compass $1.50 Night Hike? Go ahead. If you’ve got your glow-in-the-dark compass with you, you can find your way back without having to grope around trying to feel the moss on the north side of the trees. In brass, 2″ dia x 1/2″ thick, with a bezel with 2-degree increments and a 13/16″ dia hook on top…. |
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
