“Right now, you want to be shopping for yields,” writes resident Global Real Estate Investing expert Lief Simon
“Typically, in the context of real estate, ‘yields’ means rental yields. Yes, that’s a good option in the current climate.
“But there’s another long-term-yield strategy that you should be paying attention to right now: productive land.
“Specifically, here’s an opportunity in Argentina. It comes from a colleague I’ve worked with for almost 10 years.
“Steve Rosberg, through his company Ushay, has launched a new timber project after having successfully funded and followed through on two previous such undertakings. For this venture, Steve has secured 1,438 acres in the Province of Corrientes that will be planted with eucalyptus (32%) and pine (68%). The eucalyptus will be harvested and sent to nearby paper mills. The pine will be harvested for lumber and manufacturing.
“Diversifying between two species reduces the overall risk of the project. Eucalyptus has a shorter growth cycle than pine…13 to 15 years, compared with 20 years. Eucalyptus also re-grows from the same stump, eliminating the need to clear the land and replant. Three harvests can generally be taken from a eucalyptus tree before you have to pull the stump and replant.
“With eucalyptus in the mix, Steve’s plantation should yield a generous cash flow starting in 13 years (remember, this is a long-term play) and continuing through 20 years, when the pine is harvested.
“This is the kind of investment that works nicely as part of a retirement portfolio…or perhaps as a gift for a young child or grandchild. You’re setting up a yield today that could pay for college tuition, say 15 years from now.
“Steve’s projected annualized ROI for this project is 15.87% over its 20-year lifetime.
“In the current climate, this makes perhaps more sense than any other kind of investment I can think of. You’re locking in a strong yield return for two decades…a yield that’s based on a hard asset.
“Minimum buy is but US$50,000.
“Steve has sold more than 50% of the available investment units. He has agreed to allow us to invite Live and Invest Overseas readers to participate. My advice is to act now. This is one of the easiest and most accessible wholesale real estate investment opportunities you’re going to find and one of the most sensible investments you could make right now, period. It won’t last long.
“If you’re wondering what to do with your long-term investment cash in the current climate, this kind of back-to-basics, yield-producing play is the answer. ”
“Kathleen, here are some notes from my travel diary,” writes a reader-friend who visited us in Panama last week:
“Wednesday, we did the obligatory Casco Viejo tour before flying to David. As a small-plane pilot, I enjoy flights like this one. Amazing how efficiently our full plane of passengers dispersed out of the David airport once everyone had their luggage.
“Thursday, we rented a car for a day (US$24 from Hertz) to get to the coast. Spoiled ourselves at the luxury resort Las Olas for US$20 per. Came back to a parade of horses. What a treat to see so many Panamanian riders on horseback. There had to be more than 1,000 of them during the hour-long parade. This was all part of the annual San Jose Fair.
“Friday, we took a local bus again to get to Boquete. Treated myself to a US$3 haircut. Gran Nacional’s large pool had almost no one in it.
“Saturday, we returned to the fair (which runs from the 12th through the 22nd…at all hours). Flew back to the city and stayed at The Executive. Due to a travel snafu, we had to arrange our reservation on the spot, as walk-ins. But we got a rate of US$99 for the night, including breakfast buffet and wireless Internet!
“P.S. Today’s high was 29 degrees F. Looking at the trip photos, we’re already sorry we came home.”
“As a Canadian who sincerely appreciates all the information in your newsletter, I need to say this: Canada also has a Multiple Listing Service, with cross-country listings. Our real estate people do indeed work for the buyer OR the seller and must sign a contract to that effect for each transaction.
“So, in fact, the U.S. is not the only country in the world or even in America (we are in North America, too) with an ethical real estate system.”
— Sylvia R., Canada
Thank you, dear Canadian reader, for setting me straight. You’re right, of course.