Shopping For Yields
March 1, 2009
Panama City, Panama
PLUS: The Lessons Of Madoff And Stanford...Settling Down In
Ancient Dali...Better To Rent First...
An Adventure With Upside In Argentine Wine Country
"It's time for back-to-basics thinking," writes resident global real
estate investing expert Lief Simon..."time to return to the
fundamentals. Right now, you want to be shopping for yields. And one
opportunity for long-term yields worth your attention in the current
climate is productive land."
What should you think about producing...and where?
Correspondent Tom Phelan offers this full report on how to have a
grand adventure in one of the most beautiful places on earth...while,
at the same time, making a hard-asset investment with the potential
for 12%- to 15%-a-year yields over the long haul.
Take the time now to read what Tom has to say. The payoff could be
significant.
Not to mention the
fun.
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Dear Overseas Opportunity Letter Reader,
"Did you know that you can buy good houses for just $50,000 in the
Miami area?" reports a friend. "I'm beginning to think that property
is the best investment I can make now. Stocks could fall another 50%.
I've got municipal bonds, but who knows what towns are going broke. I
don't trust the dollar. What else can I do?
"I buy a decent house, and I know what I've got. And right now, I can
rent those $50,000 houses for $1,000 a month. So, figuring I miss a
few months, I'll get a gross return of 20% per year. I pay my expenses
for half that. So I'm getting a very good yield..."
Sounds like a solid plan to me.
That is, this sounds like the start of a very solid investment
strategy. I don't trust the dollar, either...so, by all means, buy
those $50,000 Miami rentals...then look further afield for other
income-producing real estate investment options, as well.
For the past decade, it's been tough to make a decent return as a
landlord. Property values rose too high. In most markets, a disconnect
developed between the cost of a house (or apartment or condo) and the
amount of monthly rent it could command. Net rental returns shriveled.
Now, property prices are falling in key markets...and, again, in key
markets, rental demand is increasing...expanding rental returns to
very attractive proportions.
I told you last week about
five markets where purchase prices are falling and rental rates are
holding steady or better. If you're shopping the globe right now
for yield-producing real estate opportunities (as you should be), take
a look first at Panama, Nicaragua,
Paris, and Portugal's Algarve.
In addition, I told you this week about a particular opportunity to
buy for yields at a greatly reduced and appealingly low cost of entry
on the island of Boracay in the Philippines. Each
unit comes with a guaranteed yield from rental of 7.8% per year for
three years. Bank financing is available. This is a hotel-condo
project on both a beach and a golf course.
Fully turn-key, with rental and property management on site and each
unit sold furnished at no additional cost.
Crisis investing opportunities are emerging quick around the world.
Those that allow you to buy at a substantial discount while, at the
same time, setting yourself up for income in a market with a rental
track record are among the most interesting.
Our scouts are searching out more of them as I write. Watch this
space.
Kathleen Peddicord
----------
Time For Plan B
In the United States and elsewhere, this is shaping up to be the
retirement era of scraping by and making do.
But not everywhere. In some key spots, not only can you maintain the
standard of living you enjoyed during your hard-working years...you
can improve it!
You can live better than you ever did "back home."
By the sea...in big cities...in small colonial towns...sometimes,
even, on the edge of nowhere...
Here's your road map to the world's
top Plan B retirement options right now.
----------
P.S. Also this week:
- What can the overseas investor learn from Madoff
and Stanford?
Eight things, specifically...
-
10 steps to launching a new business in a Caribbean
paradise...
- Intrepid correspondent Paul Terhorst checks in from the road:
"Vicki and I are traveling through rural China in
southwest Yunnan province," writes intrepid Correspondent Paul
Terhorst. "Tibet and the Himalayas are just up the road a ways.
"Immaculate villages with their adobe-brick houses line the river
valleys. Below the villages and closer to the river, farmers tend
small plots of beans, tobacco, rapeseed, and herbs. Dali,
for example, is an historic jewel. Life here is so pleasant that the
thought does occur to you: Maybe this wouldn't be a bad place to
settle down...to retire.
Perhaps 50 Westerners have already done so, so you wouldn't be the
first.
- When trying a place on for size, to determine whether it might be
the overseas retirement haven with your name on it, we say:
Rent before you buy.
Maybe rent, period. In the wake of the tumble and even collapse of
property markets around the world, maybe you don't want to mess with
investing in real estate at all as part of your retire overseas plans.
Renting long-term, rather than owning, leaves you mobile and flexible.
No maintenance, no repairs, no property taxes...
Understand, though, that even renting abroad can come with
complications you may not expect.
Here are 11 things to know before you sign a lease in a foreign
country.
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