AuthorTopic: A Rant On Ex-Pat Real Estate  (Read 594 times)

Offline Eddie

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A Rant On Ex-Pat Real Estate
« on: April 19, 2019, 10:09:55 AM »
My kids like Costa Rico, and it's on my list of retirement destinations to at least consider. Even though it's tropical, it has a huge variation in climate, believe it or not.  I've known some people here who had good experiences living down there part-time. As much as I like owning property as an investment though, I think this guy is correct when he says renting is much preferable for any experiments in ex-pat living. This video explains why.

<a href="http://www.youtube.com/v/40HnR3QrxbI&fs=1" target="_blank" class="new_win">http://www.youtube.com/v/40HnR3QrxbI&fs=1</a>

It's easy to buy real estate in many ex-pat locales, but it's very hard to sell it. The very worst decision would be to try to build a house, because of hassles with the manana culture and inevitable cost over-runs.
What makes the desert beautiful is that somewhere it hides a well.

Offline monsta666

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Re: A Rant On Ex-Pat Real Estate
« Reply #1 on: April 19, 2019, 10:50:39 AM »
If you want to sell then it is comes down to general common sense rules; namely making a sale is an investment decision and an investment decision relies on due diligence. At the end of the day when going into any deal it is a question of rate of return so you MUST forgo your own personal ego and find ways of obtaining reliable sources so you can make an informed decision. It should be noted that places like Costa Rica or other developing countries can have property values comparable to developed countries so it is prudent to do proper research. If you cannot be confident on trends or what the true value could be then I would suggest it is not worth investing in such properties.

If you are still set on getting a place in that country then you must consider if you like the country as a place of retirement or as a place to gain monthly cashflow from renting. If cashflow is the motive then you need consider if such income will make a difference to your bottom line particularly after retirement. Moreover if this asset is something you wish to pass on to your children then it is worth researching what inheritance laws are in the region and also whether your children are keen on using this as a source of income. If they want to live there in the future then you need to consider if other factors such as healthcare, amenities would make long-term visits a worthwhile endeavor after all they make like the place as a holiday but what separates a nice holiday from a long-term visit is what services the country can provide.

Offline RE

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Re: A Rant On Ex-Pat Real Estate
« Reply #2 on: April 19, 2019, 11:22:28 AM »
My kids like Costa Rico, and it's on my list of retirement destinations to at least consider. Even though it's tropical, it has a huge variation in climate, believe it or not.  I've known some people here who had good experiences living down there part-time. As much as I like owning property as an investment though, I think this guy is correct when he says renting is much preferable for any experiments in ex-pat living. This video explains why.

It's easy to buy real estate in many ex-pat locales, but it's very hard to sell it. The very worst decision would be to try to build a house, because of hassles with the manana culture and inevitable cost over-runs.

You're going to sell in TX to go further south and buy in Costa Rica?!?!?!  You don't even speak fucking Spanish, forget the global warming!

What happened to Canada?  At least they speak English there.

RE
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Offline Eddie

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Re: A Rant On Ex-Pat Real Estate
« Reply #3 on: April 20, 2019, 10:17:47 AM »
If you want to sell then it is comes down to general common sense rules; namely making a sale is an investment decision and an investment decision relies on due diligence. At the end of the day when going into any deal it is a question of rate of return so you MUST forgo your own personal ego and find ways of obtaining reliable sources so you can make an informed decision. It should be noted that places like Costa Rica or other developing countries can have property values comparable to developed countries so it is prudent to do proper research. If you cannot be confident on trends or what the true value could be then I would suggest it is not worth investing in such properties.

If you are still set on getting a place in that country then you must consider if you like the country as a place of retirement or as a place to gain monthly cashflow from renting. If cashflow is the motive then you need consider if such income will make a difference to your bottom line particularly after retirement. Moreover if this asset is something you wish to pass on to your children then it is worth researching what inheritance laws are in the region and also whether your children are keen on using this as a source of income. If they want to live there in the future then you need to consider if other factors such as healthcare, amenities would make long-term visits a worthwhile endeavor after all they make like the place as a holiday but what separates a nice holiday from a long-term visit is what services the country can provide.

 I would keep my cash-flow properties here, which would theoretically provide about half my necessary income. Once the loans are paid off, it's unlikely that things will get bad enough here under even a much reduced BAU (call it bau). Even in bau, people will rent.

So until something fundamental changes that depopulates this city, my current portfolio is a decent cash cow.

The tax laws here allow me to pass the real estate to my children tax free. In CR, probably not. My estate will not become massive intergenerational wealth, but it might allow my kids to own a home, pay off their debts, and have a slightly better life. I have no problem with those ethics.

The rant, which was about Costa Rico, was shared, not because CR is the only possibility (I still like Canada too.) I shared it because it contains some important truths about HOW to approach ex-pat living. Truths that would apply in many places.

I might never move. It is very sensible for me to keep working. But I am no longer young, and sometimes these decisions to quit work are not optional. I think it's reasonable to kick around various decent options.

The bottom line is that real estate can be an asset that feeds you, or it can be an albatross that drags you down. Cash flow is king. Properties owned for egotistical reasons.....luxuries, basically, fall more into the second category, and I for one, need to keep that in mind.

I had been thinking of selling the stead and using that equity to perhaps purchase something out-of-country......but it would probably be better to use the money to reduce my debt, or maybe buy another rental or two here..

 
What makes the desert beautiful is that somewhere it hides a well.

Offline RE

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🍌 Re: A Rant On Ex-Pat Real Estate
« Reply #4 on: April 23, 2019, 02:17:49 AM »
My kids like Costa Rico, and it's on my list of retirement destinations to at least consider. Even though it's tropical, it has a huge variation in climate, believe it or not.  I've known some people here who had good experiences living down there part-time..

<a href="http://www.youtube.com/v/kVfrIfwXFSQ" target="_blank" class="new_win">http://www.youtube.com/v/kVfrIfwXFSQ</a>

Don't forget, Dad the Pigman was an Ex-Pat.  I know this life quite well.  Stick to the sailboats.  It's a better dream.

RE
« Last Edit: April 23, 2019, 02:21:14 AM by RE »
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