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| Offshore
Real Estate As Offshore Survival Retreat - Page Two - Very Exciting Real
Estate Profits In The First Two Decades Of This Century |
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| As I've said,
the movement towards international real estate has already begun.
Countries like Belize, Panama, Costa Rica along with much of the Caribbean
are getting an influx of buyers. But so are unlikely places like Thailand,
Ireland and the Czech Republic. |
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| There have
always been institutional buyers that purchased property in external nations
for industrial and commercial use, but the new type of buyer now entering
the market in larger and larger number consists of independents; small
businesses, individuals and families. An entirely new breed of offshore
investors who are seeking greener pastures abroad as well as a profit in
international real estate. |
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| The buyers
are not all Americans, which indicates that a worldwide trend is in
the making. In the case of the Dominican Republic there has been
a large influx of Italians and Germans. They are opening dive shops,
restaurants, resorts, hotels, or simply grabbing up the best real estate
and re-selling it to other newcomers. In the Dominican Republic's Zona
Colonial, four hundred year old buildings are being renovated and the entire
area is becoming a magnificent tourist attraction. |
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| Costa
Rica also has a large percentage of European expatriates as does Cartagena
in Colombia, a place where I didn't meet one American among the
hundreds of expats that I encountered. |
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| None of this
is to imply that we are too late. On the contrary we are precisely at the
very beginning of an socioeconomic evolution that is inevitable.
As more and more people realize that they can finally live where they want
to live, and that the entire world is at their disposal, there will
be a mass migration that will blanket the world. The first ones in the
door stand to make the best profits. As in all things, analysis and
timing are crucial. Going to nations that have not yet developed a just
recognition of human rights and those nations without a transparent legal
system can be problematic and risky. But not unduly so. |
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| Expatriates,
and moneyed newcomers to some nations are often treated with a higher degree
of respect and privilege than the average citizens of those nations.
It can be a disconcerting phenomena, but it is a fact of reality.
Americans with their high degree of egalitarianism often feel uncomfortable
in nations where they are treated as first class citizens while the locals
are still treated as second class citizens. |
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| However, the
very presence of foreigners can help a nation to 'clean up' its act. Almost
everyone knows where the bread is buttered, and socioeconomic evolution
can have a very positive effect on more primitive nations and help usher
them into the modern world. |
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| The higher
the risk the higher the potential profit. |
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| Risk is a
function of price but risk can certainly be a matter of perception. [See
sidebar.] Note that I am certainly not recommending that the reader invest
in nations where their money may be at risk, but I am pointing out that
the best profits will occur in the more risky nations. Many Europeans
and Canadians are currently investing in Cuba. I don't necessary
think it is a bad risk, but there is obviously risk involved. It
is my observation that there are no bargains in Cuba. The Cuban government
is selling high value beach resort concessions for high dollar prices.
There may soon be housing available in Cuba for individual buyers.
It would be a splendid place to retire, but I wouldn't count on making
a large profit out of any real estate investments inside Cuba. There are
other uses for Cuba which we will address in a future article in this magazine.
For the best information on investing in Cuba read Dr. Louis Sola's "Cuban
Capitalism - How To Invest In Cuba - A Complete Guide" - [ See Resources
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| Holding
Title to Foreign Real Estate |
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| Holding title
to foreign real estate depends on the specific nation where the real estate
is located. It is always best to hold title to any real estate in
the name of an international corporation. Not all nations will allow
this, but a substantial number of nations will. The process is relatively
simple. |
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| The purchaser
forms an offshore corporation, [IBC,] and then purchases the real estate
as a property of the company. In this manner you are not personally
listed as the holder of title, thereby making it difficult for anyone to
confiscate your property. |
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| Should you
choose to sell your property at a later date, you can simply transfer title
of the corporation to the purchaser, [the corporation itself may be formed
in Nevis, St. Lucia, Panama, Luxembourg or any other offshore jurisdiction.]
If you transfer ownership of the IBC rather than go through a conventional
real estate transaction, then no one knows that the property has changed
hands except for the principals involved. The IBC still owns the
property, but someone else now owns the IBC. Without a record of the property
changing hands there are no transferring fees, no taxation. Protection
and privacy is thus enhanced. I suggest that a separate corporation be
used for each property. The use of individual corporations for each
property increases the initial cost, but an IBC costs only a few hundred
dollars. When the time comes to sell, one may opt to sell each property
separately, or to sell one property and not the other. Transferring the
ownership of one corporation is simpler and more straightforward than trying
to divide a corporation into a number of separate parts for separate properties. |
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| Where to
go - What to buy |
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| Locations
are like romances. I strongly suggest that investors buy in a place
where they want to live. |
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| As mentioned
in the article about real estate in Rio de Janeiro if an investment into
real estate does not produce timely profits one always has the luxury of
living in or utilizing what one has purchased. Especially if it's a place
like Rio de Janeiro, Prague, Bangkok or Budapest, where one can enjoy an
enhanced lifestyle. In this way, even if the market remains flat for several
years, or, heaven forbid, drops in value, one still has the opportunity
to pleasurably utilize what one has purchased. Still, it is clear that
some locations are preferable to others, and that some locations will rise
more dramatically and/or provide a wider degree of security. What are the
guidelines? |
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| Absolutely
every investment in the world entails a degree of risk. Investing
is gambling, some gambles are closer to a sure thing than others, but all
gambles are gambles by definition. This is why I recommend seeking
out real estate in a place where you wish to relocate, if you don't make
an overnight profit you are at least living in a place where you want to
be. If a location is close to a sure thing, the price will reflect
that factor, the initial prices will be higher and the price rises will
usually be slower. But not always. Panama and Belize are pretty close
to a sure thing. Price rises in Belize have been significant in prime
areas, but it remains very difficult to define prime areas. When
I wrote the book, Escape From America, it was possible to buy an island
in Belize for $20, 000 - At the time no one knew where Belize was, it was
a total unknown. |
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| Today
almost everyone with half a brain knows where Belize is and there has been
an influx of buyers from around the world. Those seeking a beachfront lot
and a laidback lifestyle will do well to consider Belize. Belize
is the sort of place where you can build what you want and live how you
want without big brother looking over your shoulder. On the negative
side you won't find the Cuban ballet there, nor will Luciano Pavarotti
show up at the opera house. ...There is no opera house, but there is a
fish market and it is probable that it okay to go barefoot the rest of
your life in Belize without missing an appointment. |
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| Profits will
continue to be made in Belize real estate and if laid back is your
sort of lifestyle you should catch the next plane to Belize. We know of
two tour groups that are oriented to relocating to Belize and we'll mention
them in resources at the end of this article. |
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| If you're
more prone to having your cake and eating it too, Panama is an excellent
choice. Panama is where we have our offices and we owe a good deal of our
success to being located in Panama. The infrastructure is excellent in
Panama. The infrastructure in Belize is primitive. [see resources.] There
is less crime in Panama than there is in Belize, and Belize has hurricanes,
Panama does not. In Panama, the language is Spanish, in Belize English.
I'd take an island in either spot, but it is a thousand times easier for
me to run my business in Panama than it would be in Belize and for me that
is the deciding factor. |
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| Each of these
nations can more or less be considered a sure thing, if not in the traditional
sense at least in the modern world where environmental concerns and a low
population density are issues to consider. People are now leaving
America in droves and I expect the trend to continue until it reaches a
stampede. |
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| Making
Money - Some Recommendations & Suggestions - Go
the next page - |
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