Offshore Investing?

Question

I'm been traveling and investing in Central America for some time.  Last year I moved to Panama.  I live in the mountains where it is spring like weather year round.  Yet, I'm only an hour to the Pacific and a couple hours to the Caribbean Sea (Atlantic)

The economy is booming here.  The economy grows 9-12% per year and has been for a long time.

New homes are being built all over the place.  Since labor cost is so cheap, the profit margins are extremely high.

It is rare to see a for rent or for sign on any commercial buildings.  They are all full and more are being built in all sizes in all cities.  New skyscrapers are popping up all over the city

Previously, I had all my assets (real estate, bank accounts, etc) in the USA.  But the way the economy is in the USA I knew I needed to diversify.   It's the best thing I ever did.

Anyone else investing offshore?

Account Closed · Answer

One huge advantage of the US is stable politics (yes even with dysfunction in Washington its still better than most of the world), a working set of laws and legal system, and a well established tradition of property ownership. Investing in other parts of the world adds a whole other layer of risks that I dont understand and cant really evaluate. So I would stay away. But if its a country you have ties to, or family etc it may make sense.

Ruta Uleviciute · Answer

Hi Jackie!

Congrats! I am an investor in Mexico, and it's one of the best decisions I have ever made.

We moved to the small Caribbean village of Tulum from London, a few years ago, without knowing much about it, just the fact that its real estate market was booming. What we found exceeded our expectations. The prices per 1 sq meter have doubled each year since we first came here, so now our initial beachfront investment is worth much more than what we paid in the beginning.

We are so excited about this booming market that we started our own real estate agency. We are happy to help anyone realize their dreams in this gorgeous place, so close to the U.S.

Jackie Lange · Answer

The skyscrapers all have lots of lights on. It takes awhile to get thousands of units rented or sold - that's why some had no lights on.

Many more buildings are being built now

One of the things I like best about investing in Central America ( besides the fabulous weather) is there are less rules and regulations and a whole lot less taxes.

In Texas, I pay about $2500 a year for property taxes on a $100,000 house.  ($500 a year in Panama)

Plus in Texas I have to register rentals with code enforcement and pay then $55 a year for the privilege.  In between tenants code enforcement has to inspect my PRIVATE property.

Emilio Ramirez · Answer

Hi Jackie,

I love panama. Haven't been down there for a couple of years, but hope to make it back soon. Have the lights turned on in Panama City yet? When I last visited, 2009??? There were about 50 skyscrapers being built and you could see them silhouetted against the city lights as we flew into the city. None of them were completed so none of them were lit up. All kinds of rumors going around in the RE world that many of them were money laundering schemes and even though not completed, were fully rented out!

Had started networking down there and considered moving myself, but I stayed in Wisconsin.... yeah not sure why... Guess I really, really enjoy cold, crappy weather :)

Ali Boone · Answer

Hey Jackie, I'm with you on offshore investing! I'm huge in Nicaragua right now. Well, I'm not personally huge there, I just do a lot down there. I bought down there myself a couple years ago and now work with another development (who is 10,000x better than the one I bought in) helping to promote Nicaragua as a country and of course the development. I LOVE going down there! I usually go 2-4 times a year right now and it may pick up. Haven't been to Panama yet but heard a lot about it. I'm hoping at some point to chicken bus it around to every country in Central America, and eventually make it all the way through South America.

There are tons of deals in the states, people are right, and I'm buying there too, but it's so much more fun and adventurous to make it out of country! Worth every minute of it.

Paul Hector · Answer

Hi Jackie,

Yes there is certainly opportunity in Central America and other emerging markets!

Being on the ground is really key! And having a network of good local partners who can provide the local, culturally nuanced and contextualized knowledge, will I think be key to your success.

Would be interested in hearing more about opportunities in that region. My only experience in that part of the world though is a 2 week holiday in Guatemala.

Had it not been for my international work and travel I too would have been skeptical of investing internationally. The news coverage of many countries is often limited, the sound/visual bites they offer are real but as they lack context and depth they send a distorted message... but perhaps this is good as it reduces the competition :)

Good luck with your ventures!
Paul

Dean Letfus · Answer

I am off shore investing in the USA :-).  Best thing I ever did.  I have never seen a market with as much opportunity as the US right now!

Joel Owens · Answer

Hi Jackie,

No offshore investing here. Too many deals in the states where I already understand the areas and feel comfortable investing.

Investing offshore comes with it's own set of issues and takes a certain investor to do it. I can see some people buying vacation homes or something like that with rentals mixed in or retirement homes.

Offshore Investing?

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