International Real Estate .... tips anyone??
Real Estate Investor · FL · Member since 2008 · 38 posts · 3 votes
You guys are awesome who invest internationally. It's not part of my investing strategy right now, but international investing will definitely be on the horizon.
If there are any tips you can give me, please feel free to post them here or PM me.
Peace!
Matthew08
Hey Matthew - There's a big world out there. Do you have any markets on mind? It might help any respondents out.
Matthew,
As Josh suggests a specific focus will make for a more intelligent conversation.
There are many differences and most are a function of the country. Finance or the lack of it, the legal process for ownership, if a non-citizen can legally own a property, tenancy rules and regulations, market conditions, etc.
In some countries the history matters. Parts of Europe have problems determining the chain of title given some wars and other events where land was taken from the prior owner.
John Corey
UK based American investing outside the US.
Hi Matthew
I Might be able to give you some advise on UK land investments. Will you be interrested?
Regards
Like the others have said, know where you are looking. There are some great oppurtunities in Central America right now. We own a international brokerage so if you narrow it down let me know. Something to keep in mind which someone stated is know your rights in that country and understand the market history as well economic conditions etc...
Eric
Hey Guys,
Sorry I forgot I asked this question.
It seems like a lot of people are checking out Costa Rica, Nicaragua, and Honduras. I'm just wondering why.
Have you heard if Costa Rica is actually the place to be??
Matthew08
Central America is certainly hot right now, and all three of the markets you mentioned have the pluses and minuses. I guess in the end which one is better really depends on what you're looking for. Of those 3 Costa Rica is definitely the farthest along, but it is also the most expensive. Nicaragua on the other hand is very undeveloped and is accompanied with some major risks, but property is really cheap. Honduras is a weird market because pretty much all the investment right now is happening in the Bay Islands, outside of there you are in a whole different ballgame. On the mainland Honduras has a serious issue with crime and drugs, and in fact I believe their capital Tegucigalpa is considered the most dangerous city in Central America, if not all of the Americas. I have a couple friends who recently moved down there and within the first 2 weeks they have already been robbed and shot at (on separate occasions).
Another hot spot in Central America that you didn't mention is Panama. Panama City is getting a little overbuilt, but Panama is probably the most attractive place in Central America for retirees and could be set to boom even more over the coming years. Again Panama is getting a little pricey (especially Panama City), but there are still lots of opportunities.
Overall I think Central America is on the up and up, so to me you will probably do ok no matter which market you choose. If you want less risk though stick with Costa Rica and Panama, and if you are a big risk taker Nicaragua might fit the bill for you.
One piece of advice though if this is your first time investing down there is to find a trusted representative to help you down there, only buy what you see (lots of developments never make it so don't buy promises), get title insurance, and plan for lots of delays. The last one is one of the hardest for Americans investing in Central America, they are very laid back down there and sometimes just getting a simple call back can take a week or more. In the U.S. that would be considered rude, but that is just the way it works down there. To some extent you can demand faster response from paid help (agents, etc.), but good luck when it comes to the city and other government agencies.
I hope that helps, and I wish you the best of luck.
Another hot spot in Central America that you didn't mention is Panama. Panama City is getting a little overbuilt, but Panama is probably the most attractive place in Central America for retirees and could be set to boom even more over the coming years. Again Panama is getting a little pricey (especially Panama City), but there are still lots of opportunities.
I hope that helps, and I wish you the best of luck.
Thanks so much for your thoughtful response. I forgot to mention Panama.
Recently some of my Peruvian friends went to Panama and enjoyed it. So when I get things going over here in the States on the wholesale front, I'll be sure to take a business trip to Costa Rica and Panama to trying to figure out any investment opportunities. Maybe I would need to spend about a month down there. Who knows?
Matthew08
Panama is wonderful, and I recently read an article on retiring/investing in Belize vs. Panama. Panama City is starting to look a little like Miami but still has a lot to offer. Compared to Belize, the infrastructure and retiree incentives are much better, but the official language is Spanish, not English as in Belize. Panama has great opportunities in Boquete (the mountains), as well as on the coast.
I've been to Belize and Honduras as well, and I'd avoid Honduras. Experiencing the limited tourist infrastructure, I can't imagine that living there would be easier than visiting.
Go Panama! :D
Hey Mat,
You're on the right track! Panama!!!!
As mentioned too though Panama City is building out of control right now. Every direction you turn there are condo buildings being thrown up.
I've had the privilege of living in this great country for the past 3 years. (Originally from Texas) The growth I've seen has blown my mind.
I believe the key in investing in Latin America are in the niche markets of Panama. The top three to me would include Casco Viejo, Bocas Del Toro, and Volcan.
Casco Viejo is the old town in Panama City. It's where the next James Bond movie was filmed recently. It has very much a New Orleans French Quarter look and is being remodeled to it's original style. It's more expensive to get in here but will be a gold mind in the future.
Bocas del Toro is a little Caribbean town much like a Maui 15 years ago. It is undergoing a boom from development and tourism. Access is ever increasing, amenities are constantly improving, and it is constantly being discovered.
Volcan is Boquete in 5 years. (Boquete is an ex-pat retirement community with over 5,000 retirees. It is built out and getting rather expensive. It has been ranked the number 1 place to retire in the world for the past 6 years by International Living) I personally have put some money in Volcan, located in the highlands of Panama. The weather here is like Colorado in teh summer, that fresh crisp air. There is a family there, one of the wealthiest families in Panama, The Jansons, that has just started pre-sales on a $1.3 Billion dollar city they're doing there. It will have all new hospitals, shopping, schools, housing and more. This town is also located only 40 minutes away from the 2nd largest city in Panama, David, which by the way has an international airport that is expected to receive flights from the US within the next year!
Mat, I've made tons of contacts in my time here. I've also met dozens of people who have spent ample amount of time and have invested in both Costa Rica and Panama. 100% of these people say Panama is the way to go. Their reasons being; Infrastructure, the people, and pricing!
If you or anyone else would like any additional information about Panama or the development projects I'm associated with down here please don't hesitate to ask.
Regards - Justin