Buy and hold abroad using new era technology

[Luca Dal Molin]

Hi BP,

Being Italian but working in Dubai I can't really say that at the moment I have a precise market where to focus on. Having a 10-12 years investment plan to build up a portfolio to sustain my retirement I consider Dubai RE market too volatile and I don't feel safe for my strategy, unless a future drop of prices will make me change my mind.

On the other side, the town I live in Italy, north of Rome, is still economically very weak, still overpriced and not offering interesting ROI.

So, the idea is to look for opportunities in Europe (my niche is students rental), searching for areas with a good growth potential and ROI. I understand the importance of knowing specific areas well, as this would make my life easier, but I also think that with the technology we have nowadays (maps, street view, market analysis, etc), some research and a rigorous approach, this is something that could produce very interesting results.

I'd like to know your thoughts, investors!

Luca

[Carl Ghiselli]

I'd like to propose a counter-point to some of the arguments here. I'm a US expat as well, living in London, investing in the US. I'd agree that technology makes some due diligence much more easy - but nothing beats local knowledge.

@Luca Dal Molin, it doesn't seem as though you will get that local knowledge given your location and desire not to invest there, so I'd suggest a partner. I invest with partners, people I've met and know that are actually in the market themselves.

With a local partner you'll get better return. You'll understand the risks you are taking and the risks of the area that you are investing in - as well as the trends. Nothing beats knowing the local rumors as to which manufacturing plant is opening or closing - or whether schools are expanding or contracting. As well as having a local trusted property manager.

No one size fits all to investing - but my suggestion would be to build relationships and then invest with or through them.

Good luck with your decisions and investments!