Can you invest in real estate in another country?

[irwinsailor]

If so where?

[Setia]

Hi,
There is considerable overseas investment in Australian RE & it has been booming for the previous 5- 10 years. Currently tapering off tho. but some investment news letters consider this the best time. I believe overseas ownership incurs a 15% annual tax plus normal taxes on annual profits if any. There may also be a capital gains tax on sale.
Regards, Glen

[BC Mike]

Canadians own property in the US and NZ, Yankees own property in Canada and NZ. NZ and Ozzy citizens can own land in each others countries. These are examples that I know of. I think that foreign ownership is much more widespread than this. You pay the taxes due in the country where you own the land. Canadians do not pay tax on the gain in value of their principal residence. I would assume that foreign ownership would not be a principal residense so it would be prudent to determine how any gain in value is taxed. The Isle of Man is the oldest parliamentary democracy and has very fair treatment of overseas owned investments. Check your own jurisdiction for taxation on foreign assests, Canada taxes a persons world wide assetts.
BC Mike C

[sjs]

Opportunities also exist in Europe and many third world countries but one should consider the stability of the area and the possibility of expropriation of foreign owned land by governmental authorities.

[irwinsailor]

See! It is a good idea that ask people about things like this. I was only thinking of a island nation in the Carabean. My thinking was to maybe buy a marina of something that I would be able to keep the boat and generate some cash flow. But I was not thinking as broadly as the people that thave replied! Kewl.

[BC Mike]

I used to work in the boat business so when you get the marina up and running give me a call. My wife likely will not let me wonder that far but I can dream. Michael Casling

[tenknots]

http://www.cs-bb.com/forums/CSBB/index.cgi/read/8468

[irwinsailor]

30 Million what? It can't be dollars can it?

[Steve Rust]

Your about 50 years to late. Forget about that dream of buying cheap property from the unsophisticated local rubes in the Islands. Now, if you have a few million .....

[European Cruiser]

Steve's generally correct - many a 'paradise' has been discovered - but quite incorrect when you begin looking at specific opportunities. Just today I picked up an email from friends who have arrived in Luperon in the Dominican Republic. Land purchasing there by ex-Pats is very common, land is cheap, the country's politicians are as crooked as a dog's hind leg but the govt's operational behavior has been very stable for some years (in a whacky Caribbean sorta way). The DR currency (Peso) is 50 to the U.S. dollar, a nice departure from the plummeting USD values we see here in Europe. The friend thinks he'd love to buy some land there and its cheap. (BTW Luperon is where Columbus stumbled in with his one remaining ship, only to find the Pinta, as I recall, which had been spirited away by its captain and crew from Chris' "fleet", being careened for a good scrub. Wonder what happened to that ol' boy?)

There are other examples, including parts of the West Coast of Mexico, Costa Rico, Belize, Jamaica and so forth.

However, the real question is...would you really want to live there? After all, you've only got sooo many years - what do you want to do with them?

Jack

[irwinsailor]

I do have so many years left and I would like to enjoy them without worrying about lack of income. I can sail for several year before money is a problem but it will be a problem oneday. I'm taking advantage of the board here to get some ideas that may help us stay out longer.

[Steve Rust]

Irwinsailor
My thoughts for what they are worth. I don't know your financial situation but hopefully your boat is paid off. It seems you have funds set aside for several years and since you won't spend it all at once, invested wisely this may provide you with additional funds down the road. Many opportunities will present themselves if you keep your eyes and mind open. In the developed tourist rich islands land may be out of reach but there may be many small business opportunities. In less developed areas land may still be affordable for that marine related business, restuarant, or small resort. It will take much patience and perserverance to deal with "third world" politics.

Your in good shape with several years of cruising funds stashed away. Enjoy it for awhile, don't let worries about money affect your cruise. After a few years you can think about what you want to do. Cruising may change your outlook on life and you may come away with a completely differant idea on what you would like to do for the rest of your life.

[European Cruiser]

...and as your cruising venues expand, you'll be using a very different reference scale against which to measure things.

It's not by accident that ex-Pat retirees from the USA end up looking for three main criteria: low(er) cost of living, relatively higher standard of living, and a stable government & political system. Finding one or two isn't hard, but finding all three is tougher. U.S. retirees end up in Mexico, Costa Rico and New Zealand as a result.

Also, settling in for a bit of time reveals the ugly underside of what looks like paradise, as some things are readily apparent. That's the phase our friend down in the DR is going thru...and the more he learns, the more reluctant he's becoming.

Jack

[roverhi]

There has been a worldwide bubble in real estate. If you are a user and want a place in the sun, the Carribean or Central America could be a place to look. I wouldn't expect to find any bargains though prices may be dropping with the downturn in the world's economy. If you want to invest in realestate, suggest you wait a year or two then look at warm areas in the US. In the US, you don't have to worry about expropriation, capricious anti gringo legislation, devaluation of the currency and monetary restrictions. More than a few people have been wiped out dealing in areas where the government can change at the whim of a disgruntled colonel or some messianic hero of the people.

Aloha
Peter O.

[jzk]

I own real estate in the Dominican Republic.