International Real Estate Finances
International real estate may be the best possible way for investors to amass a fortune over the coming decade. In times of great change and flux, the returns can be stratospheric. Supply, you see, can’t be turned on like a tap. It’s finite in the case of land.
In the case of residential or office space, supply reacts with a multi-year lag. So, what happens when a growing swell of cash and investors in hot emerging markets chase a finite or slow-reacting supply? Prices and value appreciate at an accelerated rate…far faster than the economy or other assets.
With real estate, you can invest a relatively small amount of money to control a large asset. In parts of northeast Brazil for example, we have seen the value of some condos increase by 60% in two years. Better still, you could control this condo over the two-year period with an investment of just 20% of the purchase price.
Real estate is also a great way to protect hard-won capital. Your asset is real, productive and has a use. You certainly can’t print any more of it. Historically, land has been one of the best hedges against inflation and turmoil. People will always need somewhere to live. Price bubbles may come and go...and come again. Meantime, your real estate always retains an intrinsic value.
Today, the best real estate opportunities are outside of the US. The great growth phase of the US economy is over (for now at least). Investors are concerned about where growth will come from, the security of their investments, and the value of their paper assets.
Things are different outside America’s borders. There are real growth opportunities. In fact, there’s a full spectrum of opportunities to profit. These range from high-growth frontier markets...to overseas powerhouses such as Brazil...to places so cheap that they represent true long-term value.
Brazil, for example, is now a middle-class country. Half the population now falls into the middle class bracket. Last year, the country created 2.5 million jobs. Credit and mortgage finance is opening up. As soon as people move into that middle class category, they become consumers. That includes putting themselves in the market for a shiny new condo. And the 2.5 million new working folks need to work somewhere...an office, a factory, or maybe even a Starbucks!
Think about what this means: a surge in demand for these categories of real estate. We know from what we have seen elsewhere that this means prices should rise— as should the income you derive from these assets. There has been a flood of money into the stock markets of these new powerhouses. Some markets seem expensive. Yet prices of real estate may not reflect this. You can bet on these powerhouses effectively at a lower valuation.
When You Might Need International Help
There are many reasons why people come to us for help with international issues, whatever your circumstances are, you need expert legal advice from a firm that has been providing international legal services and advice for clients for years.
Here at Expert Title Services, we have a team of experts, dedicated attorneys who specialize in international issues from buying property abroad to handling an international divorce.
We know the laws and we know how best to help you to achieve a positive outcome for you case.