The Traditional Real Estate Model
This traditional real estate investment model is based on the cash investments you make in your purchase and the appreciation of your property. The careful management of your investments, your risk profile, and your tax bracket will determine whether you succeed or fail at this traditional form of real estate investing.
Before you make an investment you should get advice from your tax advisor. You should also get advice from your financial planner, who can help you determine whether participating in this investment fits your risk profile.
The Real Estate Game Has Changed
In today’s computer age Argentina is one of the top real estate investment locations. The declining dollar is making Argentina’s real estate a great longer-term investment. Because of the declining dollar, inflation is low and rental yields are high. Because of this real estate in Argentina is appreciating at great rates.
Not so long ago, Argentina was the hotbed of real estate speculators and bargain properties. Nowadays Argentina has the highest real estate appreciation in the world and the best real estate investment returns are almost amongst the highest in the world. Leaving the United States behind, where the average life span in high-tax states is at least 13, our retirement portfolio in Argentina is paid off in less than seven years — a rate which is almost double the normal rate of appreciation in the US,
It’s plain that the conditions and circumstances of the United States retirement market have changed dramatically. Real Estate investments in places like Argentina are beginning to yield very high and consistent returns, with low risk. Or have you considered putting your money in beautiful South America? save 40% or even 60% on your retirement investments?
Peru is enjoying 10-11% annualized real estate returns. Peru is the most popular country for foreign investment with rising purchasing costs so acting quickly is important if you hope to take advantage of the current market.
The country’s low cost of living ensures easy access to real estate and makes moving for retirement a brilliant option. The state of the dollar makes Peru a wonderful foreign investment that is scheduled to grow remarkably.
You should probably work with at least one trusted foreign investor in Peru and should seriously consider investing there just as you would invest in the United States or Canada or any of the other countries mentioned in this article. If you take time to learn about the Peruvian real estate investment market, the country is likely to present you with some very favorable economic, social, and investment opportunities. After all, why would you invest in the United States or some other low-return, high-tax country when the rate of return is better in another trusted country?
One foreign investor I spoke with made a staggering profit on an investment in Peru. He invested in a flagged house for about $80,000 to $90,000 in an upmarket area that resulted in him receiving rents in the region of $200 a month. Beautiful, spacious properties sold for between $90,000 and $120,000, but his $10,000 didn’t cover his costs, property taxes, and general maintenance of his investment. When you do the math, you’ll see he invested in a $100,000 house which in two years had grown in value to $140,000. In addition, he had saved the $10,000 he invested while simultaneously growing his rents. In a mere two years he increased his capital investment by $30,000–almost without cease.
Buying in an area with a high capital investment level, but with a high-trust outcome makes for a great real estate investment. And if you find an area with a high capital investment level, but a low trust outcome, you’ll be in a position to defy the comparative risk associated with this type of investment area.
The case of one investor I saw in a Peruvian highlands region that had a one-bedroom apartment for sale for $50,000 closed after several months of ownership. On average, the rents fell three dollars a month, but the owner had no intention of selling. “There are renters in this town, but I’ve determined it’s not worth my time”, he told me. “I’m not sure that even myself as an apartment owner would be willing to rent in this area. It’s far too rural, plus I’d need a larger pool of tenants in order to offset any upkeep costs”. The payment was made via company monthly installments, and the property was rented. Wood floors, tile roof, windows, kitchen cabinets, and bathrooms were included in the rental fees.