Foreign Real Estate: 10 Must Know Investment Facts

00:05 - Intro 02:36 - Property Hoarding Culture 04:52 - Inflation 06:06 - Capital Controls 08:22 - Demographic Trends 11:02 - Hype 16:12 - National Currency 22:26 - Conflict Resolution 25:11 - Ethnography 26:17 - Maintenance Culture 29:51 - You 33:23 - Bonus Point Eight years ago I bought my first apartment in a foreign country. It was also the last. I'm not against investing in real estate abroad but I do believe it requires more research and specialized knowledge before following through with the investment. This video contains the knowledge I acquired along the way as an investor operating on a global scale for more than 10 years. I don't lay claim to being an expert on buying and selling but I do believe the principles I explain here will prove either highly lucrative or at a bare minimum cash conserving for those willing to listen. I talk about markets in Asia, mainly Thailand and the Philippines but also mention how my principles apply in Latin America in countries such as Brazil and Colombia. Even in Europe the same investment principles ring true. I've written several articles on investing abroad on my website. The 3 most popular: 1. The Safest Investment Properties Money Can Buy 2. How to Invest In Real Estate Anywhere in the World 3. How I Lost 500k On My Condo in Thailand ...can all be read 100% free here: http://haraldbaldr.com/category/investing/real-estate/ Please subscribe to my channel if you liked the video ;-)

Comments

1. This is by far the most informative investment video I've ever seen on YouTube.
   
   I have scoured the internet for some honest realtime, boots on the ground information...
   
   Thank you very Macy for your time and effort
2. The word you are looking for is ethnicity
3. Harald, you forgot to mention or you overlooked one very important thing when selling property for a profit... The currency exchange rate. For example, in Malaysia, the local currency has lost more than 30% relative to the USD in the last 18 months, so, people who brought in their USDs a few years ago converted them against a then strong Ringgit, purchased property and are selling now because their property has gone up by say 25%, they will actually make a loss when converting back to the now high USD, not withstanding other expenses and fees.
4. Two other points I'd add to the list. If you finance property it can increase your yield or loss depending which way the market goes. You may end up with a loan on the property that's worth more than the property. Negative equity. This is more likely to occur in developing markets than stable ones. The other point I think it's important to realise is that if you buy a huge property because of it's relative value in terms of your local market at home you may struggle to sell because there will be virtually no local buyers with access to sufficient funds to afford the property. This is why you see 5-6 bed villas on the market in Thailand and Philippines for years. They're so expensive even few expats can afford them.
   
   If you buy an investment property in a market with a weak currency your rental income will be peanuts when converted to your stronger domestic currency. I'd say invest in rental properties in stable markets with strong currencies and rent in developing countries.
   
   There's also the rule of law to consider. Many countries will not have a sufficiently robust legal system, or one that favours the local population against foreigners. It's not advisable to risk a lot of money in such countries.
5. Good vid. Banking on appreciation is an amateur mistake. Assume 0 appreciation and look for cash flow. Just invest in CD'S (time deposits) in foreign banks in the local currency. Spread your risk. I get 28% in Ukraine and hedge it with put options on UAH against a 50% drop in one yr. Brings my return to about 16%....which is ok with me. Money doubles every 5yrs.
6. developing countries dont have robust real estate markets. Easy to buy, HARD to sell. Expect to die w what u buy
7. After having gone into shares in a foreign property, I believe I can confidentally contribute to the topic;
   1.Don't ever buy into overseas property.
   2. Don't ever buy into overseas property.
   3. Don't ever buy into overseas property.
8. Great advice..... Thank You!
9. watched quite a few of your vids,after this one you have gone up in my opinion.i have spent time in lots of the countries you mention and alot of your points ring true.travel makes you rich in the mind but poor in the pocket,thats fair enough.
10. Thanks Harald, very informative. I will take your advice
11. have u had a look at hong kong property.not like bangkok,there is no more land to build on.values r rising fast
12. Big Like!!
13. Thank you Harald. Great information!
14. Great video! many thanks!
15. property hording is genius when you understand that we will have reached 9 billion ppl roughly about 2030, much like food property at this point can only increase in value and rent is where the gold will come from - down sides are that value will go up so much eventualy all governments will seize all property and youll have sold before then, its not penny stocks man, housing and land value depends upon demand in a market where your running out of room
16. Poor Audio.....remake please.
17. You were probably lucky to only lose 200K ThB which is (only) 6000 USD. I met a retired Danish Engineer on the Koh Lam Ferry. He has owned 5 Condos over the years. He only made money on 2 of them. I meet many retired Expats on Golf Courses around Pattaya. I only know that one Danish guy who actually made money on 2 of his 5 condos. I was in some of these condos and they were nice places. I've been told by many expats in Thailand to RENT, RENT & RENT AGAIN!
18. A wise and perceptive presentation. I learned some very important new concepts which I had not previously thought about. Thank you very much!
19. I heard of a family buying a home in an exclusive area, complained about a neighbor.
    He turned out to be big time gangster, now they are afraid to go outside.