Post: #1

Have any of you purchased properties in other countries or thought about it? I was thinking of buying a house in Brazil and renting it out and eventually use it if and when I decide to move down there. Do you get taxed out the ass for being foreign?

Post: #2

No idea but I think there is a thread on here somewhere where a guy talks about buying properties for great prices in the newly "pacified" favelas in Rio like Rocinha. Sounded like a hell of an idea.

Post: #3

My friend had a one bedroom built in Floripa, a couple blocks from the beach, he said he only paid US$30k total for it.

Post: #4

This girls house in Santa Marta 3 bed room in a good barrio not far from the beach was only 50k

Post: #5

Santa Marta is Colombia right? Property appears to be pretty cheap in SA.

Post: #6

(12-28-2011 09:53 PM)InternationPlayboy Wrote:  Have any of you purchased properties in other countries or thought about it? I was thinking of buying a house in Brazil and renting it out and eventually use it if and when I decide to move down there. Do you get taxed out the ass for being foreign?

I have definitely thought about buying a place overseas, and there may be way more to it that you realize that may require legal assistance in your target country. I am not trying to discourage you at all, but just say it would be wise to do some homework up front.

For example, in Thailand, foreigners can own the house or apartment (the actual building), but not the land underneath it. Take a look here, there are several other sites like this. http://www.samuiforsale.com/

For Brazil, find out those same caveats like in Thailand. You may find they are deal breakers, and there are greener pastures in nearby countries. Getting this information may not be just a few mouse clicks away...as not all is posted online to the degree it is in the USA.

Also, consider your access to the property. If you are going to move to Brazil full-time, you will have to think about your visa strategy. You may only be able to stay for a limited time before having to leave, like in the EU. If you are not moving there full-time, you may consider renting it out while you are not there to have some passive income, also allowing you to get a nicer place, or, just having someone keep an eye on it so it is not vandalized. Since you are not there, working out the details of property management may be a hassle. Last thing you need is to pop in for a visit to find that your place has been looted, or the A/C is out.

I am just saying...there is a lot more than meets the eye to owning a place in a foreign country. But I encourage you to go for it to see if it for you. BTW, I understand that in SA, Ecuador and Panama are more welcoming to foreigners than other places. Could be good alternatives for you.

Post: #7

If you are American it would make more sense to buy a place somewhere like DR rather than Brazil.

DR is only a 3-4 hour flight from NY so its easier to rent or sell as a 2nd home on the American market.

Post: #8

Interesting topic especially considering the fact that I spent the last two days rolling around Tampa looking at properties with my father, the deals here are smoking!

It drives me crazy that back in August, I spent 270K on a modest, but nice, 2 bedroom condo in Edmonton, a city I hate, for the same price I could have bought a really nice 4 bedroom house near Clearwater (some of the best beaches in the USA) and a good size USA city, with an NHL team!!!

Of course, Tampa isn't as sexy as say Brazil or the DR but, for the potential investor like myself, who will likely rent out my 2nd property (short term while I'm away working or partying), who do I want as tenants; a south american party animal skin chaser (like myself) or some old retired dude who wants to play golf and go to the odd hockey game?

Florida is looking very nice, close to the parents and an excellent base for future Latin America/Caribbean escapades!!!

Post: #9

In 2007 I picked up an apartment in Buenos Aires with the idea of going to see my girl down there and hopefully it appreciating. The girl and I broke up (caught me cheating) and so I've been renting it out pretty easily at 6 months a time.
Would rather sell it now though (market has gone up) and I had to pay all cash for the place. I doubt I'll ever go back to BsAs. Other places in SA and Asia are just way more fun.

Post: #10

Bought and sold a condo in Cali, Colombia....made about 25K on the deal simply because of the difference in the exchange rate at the time. Also it was real easy to rent to gringos because of the local....so I always had it rented out when I wasn't there.

Post: #11

(12-29-2011 10:53 AM)WEDO Wrote:  Bought and sold a condo in Cali, Colombia....made about 25K on the deal simply because of the difference in the exchange rate at the time. Also it was real easy to rent to gringos because of the local....so I always had it rented out when I wasn't there.

Cool, so did it easily rent out all year round? Did you use a property management company to let it out or did you have a friend there to help you out? One problem about a condo in Florida (where I"m looking) is that it would be hard to rent in the "off months" April til November, people want to go there when I'd want to be there, winter time!

Can you, or anyone else, go into more detail about buying property in Colombia, dealing with banks, legal stuff, etc? Thx

I'm thinking about buying a 2nd home SOMEWHERE warm, Florida is solid, but am now thinking about elsewhere

Post: #12

Internationalplayboy buying a house as a first investment is for people without business ideas, this money if wisely invested could generate you some serious money. If you are looking for an average life, then yes go for it.

Post: #13

(12-29-2011 12:39 PM)pitt Wrote:  Internationalplayboy buying a house as a first investment is for people without business ideas, this money if wisely invested could generate you some serious money. If you are looking for an average life, then yes go for it.

Do you mean used to invest as a silent partner, or used to start your own? Always been curious about opportunities for a silent investor as I don't want to start a brick and mortar business that would tie me down. Any advice or suggestions? I have a business degree and make my money online, but am interested in more traditional business options as well. Sometimes i feel like I am building a house or cards with my affiliate sites and would like to diversify into some areas which are more tangible as well.

Post: #14

(12-29-2011 11:38 AM)scotian Wrote:  

(12-29-2011 10:53 AM)WEDO Wrote:  Bought and sold a condo in Cali, Colombia....made about 25K on the deal simply because of the difference in the exchange rate at the time. Also it was real easy to rent to gringos because of the local....so I always had it rented out when I wasn't there.

Cool, so did it easily rent out all year round? Did you use a property management company to let it out or did you have a friend there to help you out? One problem about a condo in Florida (where I"m looking) is that it would be hard to rent in the "off months" April til November, people want to go there when I'd want to be there, winter time!

Can you, or anyone else, go into more detail about buying property in Colombia, dealing with banks, legal stuff, etc? Thx

I'm thinking about buying a 2nd home SOMEWHERE warm, Florida is solid, but am now thinking about elsewhere

Yes it was very easy to rent out year round....I had a friend that is in the business of renting apartments find most of the renters. He took care of everything and I just let him have 15% of the rent.

Things of changed since I bought my apartment and it is a bit easier...now you only have to file a form 4 to legalize the money...very easy to do.

If you don't have a bank account that you can wire the funds to...you may have a problem finding a private seller that has a bank account that will accept a large wire from the USA. If you are buying new from a developer or using a large real estate company you shouldn't have a problem getting the monies into Colombia.

Post: #15

One of the biggest problems buying abroad is that you usually can't get a mortgage so you have to pay the full price, if the property is cheap or is a low percentage of your net worth then it's not so bad, otherwise you have a huge chunk of your capital tied up in one place that could be a long way from home.

This doesn't apply to all countries, for example as a Brit it is possible to get a mortgage in the states to buy property.

Post: #16

(12-29-2011 09:45 AM)hun73r Wrote:  In 2007 I picked up an apartment in Buenos Aires with the idea of going to see my girl down there and hopefully it appreciating. The girl and I broke up (caught me cheating) and so I've been renting it out pretty easily at 6 months a time.
Would rather sell it now though (market has gone up) and I had to pay all cash for the place. I doubt I'll ever go back to BsAs. Other places in SA and Asia are just way more fun.

Brazil has some serious currency controls in place. Be sure to research this issue and to plan in advance, before any sale, to ensure that you can move your money back home. I have read that pre-planning regarding currency controls is the key to any investment in Brazil.

Post: #17

There are some serious deals in the U.S. if you do some research. A friend lives in Hawaii. She bid on a condo in a condo complex right on the water. The minimum bid was $20,000. It sold for around $30,000. In all fairness, it was not a luxury unit, but a lower-end building. But the unit faced the ocean! This was about a year ago. Her brother bought a condo in Arizona about two years ago for $10,000. Germans are invading Florida for the deals there, which makes sense considering the present strength of the German economy.

A big caveat. I believe that the U.S. has not yet reached the bottom of the real estate bear market. I also believe that there is better than a 50/50 chance of a major meltdown in the global economy this year, similar to what we experienced in 2008. So, I do not want to mislead anyone. I do not recommend investing serious money in U.S. real estate.

My point is to invest in property where there is a small potential loss. For example, even if you lost fifty percent on a $20k or $30k condo, it is not a life-altering event. If you buy in a good location (e.g., near the water) you reduce your odds of a loss even further. For a relatively small amount of money, you can have a home base after your latest world travel excursion.