How Lief Simon Would Build A Diversified Global Property Portfolio Starting With Less Than US$150,000
“What would you buy right now if you had a budget of US$150,000 to invest in real estate?”
That’s the question I put to resident real estate investment guru Lief Simon.
Here’s his response:
“I’d put half the money into agriculture and divide the rest between land and a cash-flowing rental.
“Specifically, based on opportunities I know of available right now, if I had US$150,000 to invest, here’s what I’d do with it:
- US$45,000 in an avocado plantation in Panama
- US$31,000 in an aquaponics project in Thailand
- US$14,500 in a short-term rental fractional in Greece
- US$49,000 in a beachfront lot in Brazil
That’s a total investment of US$139,500, leaving US$10,500 uninvested.
“This would be a well-rounded portfolio, diversified by asset type, country, and currency. With this portfolio, you’ve got four investments in four different countries paying out in four different currencies.
“Yes, it leaves about US$10,000 on the table, but that’s OK. You could add to that over time to build up enough capital for a fifth investment… then carry on expanding your portfolio from there.”
“How much does age have to do with how an investor should approach building a global property portfolio?” I asked next.
“If I were younger,” Lief told me, “and I did not need the cash flow immediately, I might choose longer-term investments with higher yield potential.”
Finally, I asked Lief about his preferred property investment categories…
“My favorite investment right now,” Lief explained, “is agriculture for cash flow. Over the past 20 years, I’ve accumulated considerable land assets and I’ve built a diversified portfolio of rental properties in several different countries that includes both residential and commercial units.
“The rentals throw off cash flow, yes, but, as I move closer to retirement, I’m focused on expanding this income stream. For this I like agriculture.
“If all of my other investments were to fail, my agriculture investments should generate enough annual yield to cover my living expenses through retirement.
“Then I’ll leave them to the kids.”
Omar Best
Editor, Global Property Advisor
