Why Not More of This???

[Bryan P.]

Why don't real estate investors do more foreign transactions? I'm only a novice but it would seem beneficial to me to invest in a developing market such as Brazil, Chile, certain parts of Mexico, etc.

How does an average every day person go about doing this?

-bp

[Jon Holdman]

My main concern is the lack of political stability. Evey now and then we get into debates about the possible collapse of the dollar or the complete meltdown of the US political system. Those concerns are multiplied when dealing with a foreign government. Governments change the rules. Governments have been known to nationalize certain industries. Governments do flat out collapse. Leadership changes.

So, not only are you subject to currency fluctuations, but you're also at the whim of a government that may change the rules to suit their convenience (like Cristina Fernández de Kirchner in Argentina attempted to drastically raise taxes on farms to make up for a budget shortfall) or even completely change (Egypt, Tunsia, and I'm pretty sure we've not seen the last of that.)

The countries you mention are more stable, but all have various issues.