Sleep Better—Buy Property Overseas
Why make an investment in real estate? And, why make that investment overseas?
Those are the big questions we’ve been discussing this morning live at our 2016 Global Property Summit in the Marriott Hotel, right here in Panama City.
Kathleen Peddicord introduced today’s first panel, with top global real estate investors Lief Simon and Lee Harrison, who walked us through the perks and pitfalls of buying property overseas.
First, though, of all the investment options out there, why put your money into real estate?
The ability to sleep at night is how Lief summed up his own reasons for investing in property.
You see, there’s a certain comfort that comes with owning a hard asset like real estate. As Lief went on to explain, stocks go up and down every day. They go in cycles. You have to keep watching them (it can become an obsession… and, well, interefere with your sleep pattern).
Real estate, on the other hand, doesn’t have this erratic nature. In most cases, your property is sitting there, holding its value, and often appreciating. It can boost your cash-flow by bringing in regular rental income. When not rented out, you can use it for your vacations. Best of all, once you go about it the right way, you don’t have to worry about it day to day.
Now, when you could fairly easily invest in property in a familiar market in the United States, why go to the bother of investing overseas?
The logical reason to invest overseas is for diversification outside the United States—and, importantly, outside the U.S. dollar. No matter what any seasoned U.S. investor may tell you, if all your investments and assets are in U.S. dollars, you’re not truly diversified. You have no safety net when things go sour.
That’s the clinical way of looking at it. But there’s a huge personal element to investing overseas, too… and one that shouldn’t be ignored.
As Lee told us, he looks first for a place where he would enjoy spending time—then he researches the practicalities of investing in the local market. Certainly, for a first-time investor, it’s a good model to follow. This way, if the local market goes against you, you’re still invested in a place where you’re happy to spend time. You’re in it for the long term… and are willing to wait for things to climb back up.
Ideally, for true diversification, you want to invest in a number of markets. But for the first-time investors here with us in Panama, finding that first opportunity is their goal. And over the next two days, attendees gathered here will be presented with some of the best opportunities in the world right now for short-, medium-, and long-term investment.
What about the pitfalls? We’re covering those, too. It’s not easy entering a foreign market. The purchase process (assuming an official one exists) works differently. Contracts are in a foreign language. Titles may be complicated. Often, prices are all over the place.
But once you’re aware of what you’re getting into, you seek the right help, and you have patience (a big part of living and investing in a foreign market), you can do this.
We’re gathered in Panama to navigate these top markets together and connect our attendees with the experts that can safely guide them through the buying process. (The patience part they’ll have to work on themselves. But with the expert help and knowledge they’re being dealt this week that should come a little easier.)
Most of all, we’re enjoying these entertaining panel discussions. It’s overseas real estate investment broken down in the most practical (and fun) way… and given from a number of sides. Because there are so many ways to build a global property portfolio, it’s important that we share different perspectives.
We’re just warming up here and all excited to see what’s coming over the next couple of days from Lief, Kathleen, Lee, and the other experts they’ve gathered with them here at the Marriott. If you can’t be with us, you can still listen in to all of our conversations (and have access to our speakers’ presentations) with our Global Property Summit Conference Kit. As we continue to record and package the program together, you can save 60% on it, here.
I’m off to help our attendees now… and chat with them on their coffee break. I’ll share some more insights from the scene here in Panama next week…