“This country is much safer than you think” Strategy

[Hashem ElAssad]

This discussing is about overseas investing but I couldn't find a category for it so I just chose the "out of state investing" category

• Let’s assume the following scenario: We have 1,000 American Investors. Out of those, 9,500 investors disregard investing in country X because they mistakenly think that it’s a dangerous country to live in. While in reality, the country is very safe. Do the 500 investors who have a more accurate view of the situations have an advantage? If so, and this is the main question, is it a good strategy for the sponsors to try to convince an investor who has the misconception that they are actually missing out on an opportunity. So the logic would be like this:
• Many investors think that country X is unsafe while it is actually very safe.
• Here is the proof that it is safe.
• Now, you’re at an advantage because you have a view if the market that is more accurate than most investors.

Is the logic valid? Or does what matter is prevailing perception regardless of the actual reality?

[Marcus Auerbach]

Knowledge is always an unfair advantage. I know a guy who owns several thousand apartments in Morocco. Would not be my cup of tea, but yeah I am sure he has an advantage bringing American capital. 

But "safe" is not the major concern. I would be more worried if the country is politically stable and its property laws hold up. Otherwise you may find out that the government annexed your real estate or someone bribed someone to change the ownership records - good luck if you are not a local