Given a budget of US$150,000, how would you start your global property portfolio?
Each year at our annual Global Property Summit, Lief Simon and Lee Harrison shared where and how they’d invest US$150,000… all to give attendees an idea what you might do to diversify your assets and grow your wealth on a modest budget.
It’s always an inspiring talk and one that sparks lively debate on our panel.
This year, I’ll be part of that panel discussion… so I’m thinking through my own picks.
Looking around at the top opportunities available to us today across the globe, here’s where I’d put my US$150,000—and why…
Investment #1: One-bed apartment in Northern Cyprus for US$90,000
First, there’s a personal element to this. I love the Mediterranean and could use the property for vacation a couple of weeks a year (Northern Cyprus is an easy hop from my home in Ireland). Best of all, property here is a fraction the cost of the Mediterranean shores of France and Spain.
The apartments are part of a fully operational resort with its own private beach, and they sit right next to a golf course. (I’m not a golfer, but my renters may enjoy teeing off in this year-round warm climate.) With an onsite rental management team in place, projected rental yield is an attractive 8%. Rental income is generated in British pounds, which also brings the advantage of currency diversification.
Investment #2: Truffle trees in Spain for US$58,173
A passive-income agricultural investment would have to be part of my portfolio. (If I only had US$50,000 to play with, I’d forego a rental property altogether and choose an agri deal—no question.)
The fact that global demand for truffles is 10 times current supply makes this especially attractive to me. The product on offer with the developers here is the sought-after black périgord truffle (the “black diamond” of the culinary world) which commands some of the highest prices on the market. Truffles grow underground, among the roots of certain trees—given the right conditions. For US$58,173, you get 100 trees. The projected IRR is 17%… with projected annual payouts reaching US$23,000 by year 10… and over US$33,000 by year 15 (and hovering around that figure until year 30).
Adding up those two investments, I’ve reached US$148,173… my budget is almost blown.
That would cost you as little as US$47,000 and give you room for another “pocket money” deal. Maybe a legacy investment—like teak trees—to provide a lump sum for your loved ones in the future…
Between just two investments, though, you can see how you can quickly diversify by market, asset class, and currency. One flaw in my plan is that both projects are Europe-based. But it’s just the beginning. Going forward, I could bankroll some of the profits from truffles into an investment in Latin America or Asia.
I can’t tell you what you should do with your portfolio. That’s up to you to decide.
But I can tell you the best place to find out all of your options…
It’s our annual Global Property Virtual Summit, coming up this July 20-23.
Not only will you hear about some extraordinary deals (including exclusive offers for attendees only), our experts will also arm you with all the knowledge you need to approach any property deal with your eyes wide open…
Remember, right now, North American buyers have serious buying power in certain markets. And, Lief’s uncovered a handful of exciting deals for less than US$100,000 (and even some for under US$50,000)…
You’ll hear about them all at this year’s event… and have a chance to put your questions to our top global property gurus and partners in real time…
Editor, Overseas Property Alert