Investing Fundamentals

Learn the basics on how to invest and purchase property abroad…

Buying Off-Plan Guide: Lock In Big Discounts On Future Retail Prices

Aerial View of Riviera Sao Lourenco Beach in Sao Paulo, Brazil

The Rules For Buying Off-Plan Real Estate

Buying off-plan property has many advantages, but it also has many pitfalls. I bought an off-plan apartment in Leeds, U.K., 20 years ago. It was the third property I ever bought. I naively trusted someone whom I had known for years, and I lost my rear end to his fraudulent promises. Armed with better advice, my fifth property buy was off-plan in Croatia, and I made a killing. Usually my advice is “buy what you see,” but this doesn’t work with off-plan investing. You need to know what you are doing if you are going to purchase a property before it is built. I didn’t the first time, and I learned the hard way. When you select the right property, you can make more from buying off-plan real estate than any other form of real estate transaction.

What Is Buying Off-Plan?

Buying off-plan means buying a property before construction begins. Property developers require bank financing to build their projects, and banks want to know they will be able to

Learn How To Invest Smarter And Let Inflation Pay You

Investing Infation

Make Inflation Pay You

This is the short-term fallout of the current geo-political mess:

  1. Fuel and energy price spikes;
  2. Supply chain disruptions, microchip shortages, and tech stock devaluations;
  3. Food price inflation;
  4. Stock market volatility.

It sounds ominous, but don’t worry. There is a simple way of hedging against these risks. You can make money while you’re doing it, too.

I’m about to let you in on an opportunity that allows you free time for yourself while you’re making all these profits.

Sounds great, right?

Before I give away the secret, let’s take a deeper look at what everyone else will be dealing with over the coming …

You Must Read This Before You Sell Your Rental Property

A small house with a nice green yard for sale.

When To Sell And Reinvest

“When should I sell a rental property?” is a popular question among readers.

For most people, the answer depends on the situation…

Of course, if you need the capital from the property for something like a medical emergency, the answer is easy.

But if you’re looking to reinvest the capital, there’s more to consider.

Taking the pure investment approach and ignoring diversification considerations, you start with the math. You need to …

The Most Important Factors To Consider When Evaluating An Investment

Colorful alleys and streets in Guanajuato city, Mexico

The Dangers Of Gross Yield Offers And The Pitfalls Of Fixed Appreciation Projection

There are a lot of scammers out there.

And not all of them are trying to sell you a bridge.

Some fraudsters bilk unsuspecting investors into handing money over for bogus developments.

But far more common are the legal scams where a seller dupes unseasoned investors by hyping information that doesn’t have any bearing on actual value.

A prime example of this is using gross cash flow to imply future earnings or arbitrarily fixed capital appreciation projections as a reason to pay more for a property than it’s worth.

These flim-flam artists dazzle you with information that looks appealing on the surface in the …

10 Questions You Must Ask Before Buying Property Overseas

Modern villa with pool and garden

They must have looked so alluring on paper…

Luxury villas next to the golf course at Quinta do Lago—one of the Algarve’s premier resorts… each with two full-size swimming pools (one on the rooftop) and a home cinema system and bar for entertaining guests…

Several years on since buyers paid seven-figure down payments, the unfinished villas at “The Keys” sit abandoned… scaffolding scattered about the grounds, stagnant rainwater filling up the swimming pools. The developers of this 72-property project went out of business after a local bank pulled its backing. Buyers are now battling to get their down payments (in the region of US$3 million) back, plus compensation.

The story made U.K. headlines—mainly because a number of its buyers were well-known British TV celebrities.

But, foreign property buyers get burned all the time…

We don’t all have millions of dollars to lose. But it hurts just as much when you lose a few thousand… or …

5 Things You Need To Know About Your Overseas Real Estate Agent

Real estate agent broker with bungalow house in background

“Imagine yourself sitting on this veranda each afternoon,” said my real estate agent, “watching the sun sink into the horizon straight out there. The orientation of this unit couldn’t be better.”

I glanced down at my compass—something I always carry when looking at real estate—and saw we were facing south. That doesn’t bode well for sunsets in the southern hemisphere.

When buying real estate overseas, your primary interface with the market will be the real estate agent. And, while the certification requirements and rules of conduct are fairly rigid in North America, you’ll find a mixed bag overseas.

So it’s best to go into your real estate search with the proper expectations. Here are five ways that I’ve found …

How To Recognize A Good Real Estate Buy In Paris

Rooftops of Paris with view of the Sacre Coeur Basilica in Montmartre and the Trinity Church

In an episode of This American Life recorded back in 2000, writer David Sedaris takes host Ira Glass on a tour of Paris—his adopted home.

Here’s how Glass introduces Sedaris…

“Two years ago, at the age of 41, barely speaking French, David Sedaris moved to Paris. He had no special feelings about France, no particular interest in the French. It would be the same if it’s Korea, he said to me, a sentence that, I think, if the French ever heard that he said it, they would deport him.”

The deeply cynical Sedaris also made a pact with himself to avoid all the usual tourist traps in the city. In pre-smoking-ban France, he says of the Louvre…

“Why come to Paris and go to the one place where you’re not allowed to smoke? As a matter of fact, it’s my goal to be the only …

What Fees And Transaction Costs Go Into Buying Real Estate?

Woman looking for house on real estate market website

Before you roll your eyes and yawn, I fully understand that an article about transaction costs is not enticing. However, if you want to buy property overseas, you need to understand the associated costs before you fall in love with the perfect place in a foreign country.

Many people looking to buy foreign real estate get swept up in the dream of owning property overseas—a beachfront retirement, a mountain escape rental property, a European second home. But their musings rarely extend beyond asking, “How much is the purchase price?”

While the purchase price is one of the most important factors in this equation, the value of your financial commitment depends upon a myriad of other expenses that can vary tremendously from country to country.

Without further ado, drumroll please… here’s a basic breakdown of the transaction costs you may encounter and …

5 Important Tips For Investors Buying Overseas Real Estate

Riomaggiore, Cinque Terre, Italy

If you’re just starting to explore overseas investments, you are probably intrigued by the possibilities. You may be drawn to affordable oceanfront properties, rural mountain escapes, or vibrant city living. Personally, I’ve been interested in all.

You’re also probably concerned about risks like foreign governments seizing your assets, natural disasters, and fraud. Investing in overseas real estate can be risky.

I found out the hard way.

I had just returned from Ecuador where I had purchased an oceanfront lot for a great price and made plans to build a house. I had visions of whale watching from my infinity pool and parties with new friends.

Then came the email from my attorney. My building permit had been denied because the government was planning to …

What Expenses Can I Claim Against Rental Income?

Man calculating costs

How To Minimize Income Tax On Your Rental Properties

If you’re looking for a way to fund your new life overseas—or boost your existing pension so you can enjoy more luxuries—investing in a rental property abroad is an excellent option.

An investment in a piece of rental property in a foreign country is one of the smartest things you could do with your …