Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
7y
Be sure that in whatever country you are looking at that you, as a foreign national, can actually own the property rather than one of those 99-year lease bits. Many countries do that for foreign investors.
Then if it's something like pre-construction, look at the reliability of that country as to 1) how likely the development is to happen and 2) if something goes bad, do you have recourse.
(the latter one I may have unfortunately learned from personal experience...)
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
7y
Be sure that in whatever country you are looking at that you, as a foreign national, can actually own the property rather than one of those 99-year lease bits. Many countries do that for foreign investors.
Then if it's something like pre-construction, look at the reliability of that country as to 1) how likely the development is to happen and 2) if something goes bad, do you have recourse.
(the latter one I may have unfortunately learned from personal experience...)
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
7y
Returns are pretty good in the US along with demand for rentals and strong property rights.
Where are you considering investing and why?
One attractive item in the US is the availability of investment returns, so you can use leverage.
That's rare in other countries. Some countries don't even have what we think is a normal owner/occupied mortgage market, much less loans for investors.
Something to think about.
Lots of countries have restrictions on foreign investments...so that's also a consideration.
Rental Property Investor · Atlanta, GA · Member since 2018 · 65 posts · 29 votes
7y
My family is originally from Colombia South America and they had been asking me to invest there.
I did some research and you can get at least 15% returns. Also sending american $ makes a lot of difference since the dollar is so high right now.
$1 American dollar = $ 3000 Colombian pesos.
Real Estate Investor · Austin, TX · Member since 2016 · 114 posts · 49 votes
7y
Are those returns based on the return you get on the dollar or on the peso? If you're basing it on the dollar (and therefore current exchange rate), look at the average exchange rate over the last year, and assume the currency will drop some more compared to the last six months.
Last thing you want to do is buy it when the currency is what you think is at a low point, and the exchange rate tanks more.
One thing to remember about Colombia is the income tax is much higher as well. That said... If return is actually 15% in local currency, and there's a chance the peso goes up again, then only thing you have to worry about is having someone trustable to manage it for you. Not "it hasn't rented in 4 month" meanwhile it's occupied the whole time.
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
7y
Eduardo I invest internationally but your question is very vague.
Why invest internationally? First it's diversification, plain and simple. Second, the unleveraged returns and potential capital gains are often much higher than in the US. Yes oftentimes you can't get the leverage that you get in the US. But it looks more an more that the US is in the middle of a huge housing bubble and the economic cycle in the US might be about to turn (look no further than what the stock market is telling you). I'm not so sure it's a great idea to have all your real estate in the US bought with borrowed money in such as situation.
This being said, if you invest internationally, you need to know how to do it or someone who knows. And having contacts on the ground is a must.
Colombia is on my radar. It's a great country emerging from years of civil war and with a fast tourism industry. In Latin America, I'm concentrating on Mexico at the moment because it's even more profitable.