I leave you savvy folk to draw your own conclusions about the company, the "research", and the researcher, just wanted to put this out there in case this recommendation turns up again. hope this post doesn't disappear again.
I'd venture that should be your goal anywhere in the world, at least for the next decade or so…if you're betting on capital gain, you're better off at the poker tables. No offense meant to you savvy US folk, some of you will make some nice bucks if you're quick on your toes, and some of you did, or are making some nice appreciation premiums as we speak- but a great many, if not the majority of new players out there, who tried to jump on the bandwagon whatever the cost, simply won't be.
I'll stick to the easily manageable cashflow properties for the next few years. Call me chicken, it works for me.
A quick online check seems to suggest that different provinces in Canada, as well as in Georgia, USA, for example, have slightly different rules and regulations regarding depreciation. My depreciation agent here in Australia, also, mentioned that capital gain laws seem to play a part as well (pre mid-1980s, for instance, cannot claim building depreciation, only internal fittings)…so I'm guessing (just guessing) there are at least some slight differences…it'd be interesting to find out more.
Not so fast, he still needs to sort the signature not appearing on new posts things. My poor little fingers have had enough copy and pasting to last them three lifetimes…
Living in close proximity to and running a resort is miles apart from purchasing and trying to profit on property from another country. I'm glad to hear your experience is positive, but at least for Fiji, I know of quite a few individuals who fared much worse than what you're describing, due diligence and all. Research is only good if the country and it's officials have a concrete policy that doesn't fluctuate with every wind of change. The countries you describe are far from it. While there's indeed great opportunity there, I hardly believe its a safe course of action for someone who doesn't live and breathe the local lore on a daily basis. Frontier markets are fine for those who know what they're getting into, but trying to sell them as established economical environments is bordering on deception. It's like me trying to promise my clients capital gain in Japan. I'd be a liar if I tried to claim that with any degree of certainty.
There are statistics for every area, and also a list of vacancies per each and every unit block, although these may take some digging up to retrieve in some cases.
Japanese owners, however, are extremely averse to government supported tenants (equivalent of section 8 in the USA or housing supported tenants in Australia). We, as foreigners, don't suffer from this stigma- these guys are quiet as mice, and normally come with government backed guarantees for 3 months of payment even if they abscond, which also covers the price of cleaning and getting a court order to throw out their belongings if they end up disappearing- which is the worst they'd do. Japanese tenants would NEVER EVER damage a unit, and having others stay there is unheard of (not to mention physically impossible with the size of these flats).
As a result, the official vacancy rates hardly apply for the foreign investor – if a unit is vacant for a month, we normally would apply for a government supported tenant, as opposed to Japanese owners, who in the majority of cases would prefer to have the unit stand empty rather than take them in, so there are always long lines of those waiting to find units, AND as a result, the government also approves higher rents for them. Win-win all around, from our perspective, as well as the tenants and the government, as for the tax payers who foot their bills…well. But that's a wholly different issue, and not the focus of the investors' attention normally. More a social/moral dilemma.
The bottom line is, the longest we had a unit vacant so far was six weeks, regardless of what the actual vacancy rate of that building was (let alone the area average).
So is it a pure cashflow environment, no capital gain in the last 3-4 years, and none expected? Or are there movements in different areas of the city, just not where you like to play? What are the demographics/nuances in the area growth wise? (not expecting you to crystal-ball/speculate, just interested in your opinion…)
Just out of interest- what sort of DD would protect you from corrupt officials who decide to take your property for their own, for instance? Or are you saying this never happens in the island nations?
Also not sure…I think there are differences in claiming purchase expenses, for instance, so depreciation may also vary, but never looked into Australia in that regard, so have no frame of reference.
You're referring to US properties, I assume? There are a few countries represented in "overseas deals", that's all I do Japan, I've noticed the uk, Romania, Bulgaria, Germany, Indonesia, new Zealand Singapore, china, hong-kong, India and Thailand also come up here, to name only a few…maybe be a bit more specific if you want more accurate answers…?
I know where you're coming from, most people hate it lol, but, truth be told, I enjoy the deal mining, spread-sheeting, negotiation, multiple portfolio management etc etc far more than the hands-on walking, inspecting, interviewing tenants, contractors, renovators, PMs, etc etc…that's one of the reasons Japan appeals to me so much- you can actually do it safely and remotely there, and the HOAs (housing companies, as they're called there) actually do their jobs properly.
I've got a good super-reliable and professional team on the ground, which leaves me free to focus on the "virtual" side of the portfolios- and I really do not need to attend in person at all. In fact, because we only source tenanted properties (unless specifically instructed otherwise), and the law in Japan forbids anyone from entering a property when it's tenanted, all I can do when I do attend in person is get a feel for the area and the building, surrounds, etc- which I only need to do when I expand to new areas or show investors around. I actually thrive in that "paperwork/email/Skype/phone" environment, and it enables me to provide better service to a large number of clients at any given moment. That, and the best Japanese partner anyone could hope for
Of course, when I'm shopping for personal use or holiday let properties things are totally different. Then I buy vacant and do visit in person, more than once, supervise spruces if required, etc etc. Wouldn't have it any other way.
Not to defend the seminars one bit, as I'm actually quite averse to them- but the reason I switched over to RE was, in large part, to be able to spend more time at home. You just don't get that working in corporate IT project management. )
Personally, I found networking and attending RE or financial investment conferences around the globe gave me a hell of a lot more than any seminar ever could, in my experience. If you're going to spend 10k on your education, do it in the company of well-seasoned and well-travelled investors, fund managers and industry professionals from all ends of the spectrum, not crammed in a room with a bunch of other clueless being brainwashed in the one often dubious method and by the one self proclaimed guru.
Theres a huge amount of excellent industry events in Singapore, hong-kong, Thailand and Malaysia that'll cost you the same, if not less, offer FAR (far, far) more comprehensive, current and impartial information, and allow you to make far better contacts. (not to mention the food, sights and cultural experiences are miles apart).
I can get good whole sale deals for about the same price as 2009
Kyler- you saying nothing's changed in KC in the last 2-3 years? Thought I was noticing some more wholesales popping up there, thought it had something to do with a pickup in activity, price etc…would love to hear more of your impressions when you have a minute
One property at a time, mate. once you have enough stable income to diversify and take on some risk, you can make some serious hyper-jumps (and hyper-falls, but then you can handle them).
There's actually a pic attached, but for some reason it doesn't show…not sure if it's the new website or me, one of us is having a blond moment?..trying again…
1. Kyler here does a pretty decent job on exactly that type of property in the USA, and there are a few others who claim the same
2. The 30% returns are a myth, unless you're talking about gross yield, if they ever existed at all (I doubt it personally)
3. As for Steve, well, he's a brilliant property investor, but a darn good salesman too you don't get 20k properties in Australia, unless you mean in caravan parks (and not very good ones at that). You may be able to get 20-25% returns in some mining/manufacturing hubs, but I very much doubt the long-term potential there (plus again, nowhere near 20k, so your portfolio diversity goes out the window until you hit the several millions mark).
If you spend months and years building a successful network in the USA that can deliver timely and efficient solutions to all emergencies, you may be able to manage these types of properties remotely to a point – but to build that network in the first place you'll need to spend a fair bit of time on the ground there to begin with. If you're up for it, it's achievable (but I still very much doubt the 30%).
Would love to hear anyone's thoughts to the contrary, preferably with backing deal breakdowns and not just "yeah, I can!"