Job Discussion Forums

tedkarma · Posted: Thu Dec 01, 2005 4:24 am Post subject:

Only my opinion, but I would suggest that you NOT try to manage the property from overseas. Just won't work well. A professional manager is only 10% of the gross rents - and well worth it.

JZer · Joined: 16 Jan 2005 Posts: 3898 Location: Pittsburgh

Well, I think my father will look after it for the time being. If it is already rented out, then he will just have to call someone when repairs need to be done. If it does not work out I will look for a property manager.

tedkarma · Posted: Thu Dec 01, 2005 1:51 pm Post subject:

One reason to consider professional management is that legal issues arise from time to time and it is all old hat to the pros. Legal process for evictions etc - can be difficult and expensive (and, of course, varies from state to state - country to country). A pro knows how to do it quickly and cheaply and CORRECTLY.

Also, trusting your investments to family can lead to strains in your relationships if things aren't handled properly and cost you major money. Perhaps a lawsuit because your father didn't handle an eviction properly? A professional manager will have insurance to cover such issues - your dad won't. Perhaps a drunk tenant beats up your dad when he goes to collect unpaid rent?

Let a pro handle it. It's what they do. It's just a cost of business - but a good manager will know how to maximize your income and minimize your costs. Stuff they've been doing for years and years - that your dad is a newbie at. It's a big investment - do it right.

Just food for thought.

Just my opinion.

JZer · Joined: 16 Jan 2005 Posts: 3898 Location: Pittsburgh

The real problem is trying to get it done with only limited time in the U.S. I only have one week in December and then can return in February if I am going to purchase. Maybe I am just too ambitious for my own good but I would like to buy if all the financial figures seem to be correct but I think the rent is what he says. My brother pays $400 or $450 for a one bedroom apartment in the same town.

JZer · Joined: 16 Jan 2005 Posts: 3898 Location: Pittsburgh

tedkarma, it is too bad. The property was sold. It has been on the market for almost 9 months but I could not try to purchase it sooner. I have been finishing up my MA in the U.S. and have been earning $1200 a month. I hope that I can come up with something in the next year.

Justin Trullinger · Posted: Sat Dec 03, 2005 9:44 pm Post subject:

I guess property back "home" could be a good idea for some. It doesn't work for me, because I'm pretty sure I would get absolutely CLEANED trying to invest intelligently there. I've been gone too long to know the market, and I'll admit that I don't enjoy it enough to spend the necessary time researching an area to buy...I know my limitations, and I would NOT make a good investment decision in a country I have only occasionally set foot in in 10 years. I hardly know anybody there anyway.

How about buying where you're at? Anyone have any good stories about buying as a foreigner? I haven't been in the property market yet, but there are some nice little farms in SA.

Good Luck,
Justin

JZer · Joined: 16 Jan 2005 Posts: 3898 Location: Pittsburgh

I think people invest in real estate to create a good lifestyle. So they look to purchase property in the west and live in some cheaper country. Purchasing a property in a foreign country will most likely not produce the kind of income you are looking for. There are possibilities to buy nice vacation homes in foreign countries that may provide a substantial income.

Mchristophermsw · Joined: 14 Apr 2005 Posts: 228

I bought some property in Trinidad and Tobago. Just beautiful and a 5,200 square foot lot in a residential area only cost me 11,000 USD.
Similar property cost between 20 and 50,000 USD depending on how close you want to be to the capitol. I am only 20 minutes from the second largest city and 1 hour away from the Capitol.

After living in the Bay Area were it can easily take you an hour just to get from one side of San Jose to the next--Island life is a refreshing change Smile

I could not touch the same thing for under 400,000 USD were I live in the US.

Also, real estate is a global market and in many of the so called third world countries real estate is rising and will continue to rise gradually.
There are some real deals out there if you invest wisely and if your goal is not to get rich but be comfortable it is do able in a foriegn land.

BTW TEDKARMA has some really great advice! Go Ted! Smile