Who's Investing Where?

[noobdogs]

i just want to get a little conversation going about who's investing in what areas of the country?

talk about your local market(s) a bit.

if you're investing out of town/state - do tell us your "secrets"...

[sarahk]

We continue to invest close to where we live, which means near a main arterial, close to the CBD but with parks and universities near by.

The key, for us, is to invest where people want to live, and where they will want to live in 10 years time.

[noobdogs]

what do you think of offshore pre-construction projects - condos and the like?

[sarahk]

Offshore = new laws, new construction practices, new risk

There's a scam down here with pre construction projects which works like this.

Developer buys land
Bank says they'll lend the construction $ if the develop has sold x% of the apartments/condos/etc - small deposit ok, they just want to see contracts
Developer sells apartments for the market rate
Developer builds apartments but they're late, ofcourse
The market is roaring ahead and the price the buyers have agreed to now looks like a great deal
Developer finishes work and now has to get "title" from the council before he can hand over the properties and collect the $
Developer delays getting "title" using delaying tactics
Council deems original contracts to be null and void
Developer resells the apartments and the new, higher price

the clause to let the buyer out of the contract is to protect the buyer if the developer can't finish the job. However it is being used by developers as a way to get finance and then get a good price at the end.

A huge amount of effort has gone into selling the properties each time and it seems unbelievable that people could still profit after all of that but it's been proven over and over to be happening.

While this might not happen if you buy pre-construction offshore, are you really up on the play with the local hijinks?

[TJ2007]

I hear ya...Florida is rife with builders pulling tricks like that. I have seen so many people screwed in the last year I couldn't recomend anyone to think of buying new construction in FL - all the builders are getting into it...and the big ones are just as bad as the little...

...They don't care if they get sued some of the time as the profits are so huge!

If they can bump your contract and sell the place for hundreds of thousands or even a million more what do they care if they have to shell out a few bucks now and again...

[TJ2007]

On a positive note :)

There are lots of great deals offshore. There are many countries booming right now or about to boom where appreciation far exceeds most of the US right now, with quality construction and great management.

Why wouldn't you want to own a couple places overseas that you can go and spend a few weeks in a year and then have a professional management company run it the rest of the time with a Guaranteed Rental Return?

[noobdogs]

so where are the places to buy and have prop management for when you're not around to manage the property?

New Zealand?

[sarahk]

It can be done and you can get good/excellent property managers but even then I'd still want to be able to do a drive by from time to time.

Again it comes down to how different the place is from where you live. You may come down here and find we get up to all sorts of "unreasonable" practices. Such as weekly rent payments. Often it's fortnightly but it's rare for a tenant to pay monthly. In the states I believe it's rare for rent not to be monthly.

[TJ2007]

Try Dubai, Bulgaria, Brazil and the caribbean...to name a few

[cfreedom]

I have heard some great things about Panama. My husband and I were considering it but we were worried about the popularity of investing there. It seems when an area becomes popular for building or rather living, all the scams can be found lurking in the dark. That's one reason why Florida is so bad. So many people are coming to live here and it is disgusting to see how many people take advantage of that desire.

At any rate, does anyone have any opinions on Panama? Or possibly Costa Rica? We are looking for a place to go in a couple of years and escape the mayhem here.

[TJ2007]

Personally I would take Costa Rica over Panama.

I wouldn't be so worried about scam artists as overbuilding and over supply = Bubbles in some places :eek: ...

But if you are going to live there for the long term vs an investment you should go wherever you really enjoy being...

[Shaul Financial]

I have management interests in three REIT funds vested in part in Costa Rica, Panama and Belize. Our capital investment structure is in vacation homes and small to medium resort facilities.

Our overall return has been average, certainly below expectation. Management costs are high and government intervention (legal and tax defense) has cost more than double our actuarial predictions.

Investments in the United States, specifically in resort/vacation areas has been stellar. Our forward looking strategy is to develop properties around natural lakes and within a close radius to major metropolitan centers. There are several areas that meet this criteria and we will continue with this winning strategy.

[noobdogs]

i've heard great things about Belize. but i mean, that's just it, investing off shore, or even in other states - you just don't know exactly where to invest.

[cfreedom]

Thanks everyone. I was a bit concerned with the tax implications. Is this their taxes or US taxes from foreign investments? If you don't mind me asking:) .

[TJ2007]

Belize - people will sell anything these days LOL.

No, really I'm sure it has it's opportunities, but I think of belize more for offshore businesses and trusts than property...

Obviously you don't just want to invest blind in a country you know nothing about, but I definitely think there's room for a lot of americans to broaden there horizons, educate themselves and look for solid investments else where...how many of your investor clients would be happier right now if they hard bought a place or to in say Bulgaria, Dubai or Cape Verde where there investments would still be rising and seeing between 10-74% appreciation instead of falling values???
Just like stocks it pays to have a balanced portfolio!

There are many other countries that are coming up, and have great potential for growth and appreciation, probably far exceeding the good old US for the next 10yrs +

I love America, it is a great place and a great country in so many ways.
But, from a business standpoint you have to look at the numbers and other factors...anybody read the 'Bubble Boom' think by Harry S Dent?

I think even mayor Bloomberg himself said a couple days ago that NY is losing it's significance as a financial captial and that there are many other places that may take that top spot within a few years.

When I look to invest abroad don't just look at a nice project, but the whole picture - economic future and growth potential etc, population increase, government, tax advantages (many), and also how the governments are committed to making real estate & tourism suceed in the next decade...

Additionally, look at countries where you'd like to spend a couple weeks a year on vacation or end up retiring too.

[TJ2007]

Just got a great new ski development in Slovakia! Property prices have gone up between 30-60% in the last 9 months. Guaranteed rental package with professional management & 3 weeks personal use per year.

Or if you opt of of rental program 7% discount on sales price!



so where are the places to buy and have prop management for when you're not around to manage the property?

New Zealand?