Two Critical Reasons To Own Property Overseas In Today’s World
In Panama City with us today are colleagues, friends, and real estate investment professionals from around the globe.
Day 1 of this week’s Global Property Summit has been a tour of the most compelling opportunities for owning real estate in Brazil, Argentina, Panama, Portugal, Colombia, the Dominican Republic, Thailand, and beyond…
And we’re just getting started.
“The demand for beachfront lots in Brazil continues to expand significantly,” explained our man on the ground on the Brazilian coast.
“This is thanks to the rapidly growing middle class in this country,” Jan Chilian continued.
“In Brazil, we have many from the lower class moving up to the middle class. Meaning that now so many more Brazilians can afford things like beachfront lots… but there are only so many beachfront lots to be had.”
Then Jan proceeded to introduce the crowd in the room to the particular white-sand Brazil lots he is making available to them, as conference attendees, for the equivalent of US$49,000 at today’s exchange rate.
That’s an unheard-of price for oceanfront property like this.
Jan’s presentation on the best of Brazil for the global property investor was followed by Paul Reynolds, our man on the ground in Buenos Aires, Argentina, for the past 15 years.
“The whole world is watching Argentina,” Paul explained.
“Because today’s post-Kirchner Argentina is working hard to make itself interesting again to foreign investors.
“The country’s political and economic circumstances aside,” Paul continued, “Argentina is a lot of fun. And I think that’s important.
“Buenos Aires is the most European city in the Americas with all of the diversions and distractions that that suggests.
“And Argentina beyond Buenos Aires is a playground—skiing, boating on the lakes, vineyards…
“If you’re going to invest in another country, it should be a place where you can have fun. You can make money lots of places. I recommend you choose to make money where you can also have a great time.”
Paul’s top pick for making money in Argentina right now? Commercial and office space in Buenos Aires.
“We are on the cusp of economic recovery, and Buenos Aires is going to see a lot of new business development,” Paul predicted.
After Paul, we traveled from the bottom of the earth to the Hub of the Americas…
“To appreciate the growth taking place in Panama,” Panama property expert Evie Brooks told the group, “all you have to do is visit the immigration department.
“You can wait seven hours for a two-minute appointment.
“And that’s not on the busiest day. That’s every day.
“People are coming to Panama from all over the world for many reasons—as tourists, investors, entrepreneurs…
“And they all need places to sleep.”
Evie introduced the group to an opportunity to tap into one of the fastest-growing markets in Panama: medical tourism. The pre-construction condo building she showcased has received a special permit to be able to accommodate medical tourists… and is being built just minutes from the new Johns Hopkins-affiliated hospital being built in Panama City’s Costa del Este neighborhood.
Like Jan’s Brazil beachfront lot offer, this one comes with limited inventory set aside specifically for our conference attendees.
The reasons to own property overseas are compelling.
Real estate is a hard asset that can appreciate in value while generating cash flow.
It’s also an investment in lifestyle. A piece of property in a location where you want to spend time can bring personal enjoyment while creating a legacy for your heirs.
That is true of real estate anywhere.
However, in today’s world, real estate overseas brings all that plus something else that is critical in today’s world:
Diversification.
Diversification of market, of economy, of currency, of political regime…
As I write, Portuguese attorney João Figueira is detailing for all of us in the room another potential advantage of owning real estate overseas:
Residency.
Portugal is one country (Panama, Colombia, and the Dominican Republic are others) that make it possible to qualify for permanent residency status by investing in property in that country.
What’s on tap for tomorrow?
We’ll kick off with a panel discussion addressing the administrative and management issues and challenges associated with owning property overseas…
Things like taxes, transfer fees, carrying costs, rental and property management, moving funds around this post-FATCA world, options for taking title, etc.
I know… I know… doesn’t sound like much fun.
Not super fun but really important. Otherwise, you risk letting the administration kill the investment.
That information under our belts, we’ll carry on considering the world’s best opportunities for profiting from overseas real estate right now in markets from Belize and Nicaragua to Mexico and the U.K…
More from the scene tomorrow.
Kathleen Peddicord
