Live Rent Free in Multiple Countries

[MTF]

I haven't been there. As far as I know it's similar to Tenerife in many aspects. The sunnier and warmer southern part is the touristy part (resorts everywhere), the colder and rainier northern part is the "local" part. Temperatures are pretty much the same on Tenerife and Gran Canaria, but Tenerife gives you more diversity (due to Teide).

Out of all the islands, I think that Tenerife and Gran Canaria are the best choices because of variety and accessibility (while still offering quieter places like the northern part of Tenerife).

Fuerteventura is windy (I dislike windy places) and very dry, but has the best beaches of the archipelago.

La Palma is beautiful and perfect for hiking but much colder and rainier than other islands.

La Gomera is off the beaten path (no direct flights from mainland Europe), so might not be the best investment choice as it's relatively hard to get there. I've read it's a very nice place, though (also northern colder part and southern warmer part, but much fewer tourists).

El Hierro is very small, hard to get to and doesn't really have anything exceptional except for scuba diving.

Lanzarote has some nice beaches, but it's too dry for my liking and looks like a big wasteland.

In the end, it all depends on how often you'd like to visit and who is your target visitor. If you'd rather offer a premium experience for people who don't mind getting off the beaten path, then La Palma and La Gomera might also be good choices.

 

[GlobalWealth]

Hey @GlobalWealth thanks for this thread, amazing information, appreciate your contributions to the forums.

Quick question, do you, or have you ever done, an ultra luxury property on Airbnb? Like a penthouse or a villa? I wonder how they perform as oppose to average units.

I have not. Just normal stuff.

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[GlobalWealth]

I was wondering the same. I've been looking at some beachfront/ocean view condo units for sale in Costa Rica.

Just look at comparables in the area. If it is a touristy area then it likely CAN do well.

But it's just a math problem.

If the condo costs $1MM and would only rent for $100/n then you need to rent for 1000 nights per year just to hit 10%.

Unless your reality is different then I don't think it's possible.

But if it can rent for $1000/n then you only need 100 nights.

Of course it's always a risk but you can research the local market to get comparable nightly rates and occupancy.

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[GlobalWealth]

Excelent thread! Thanks for the GOLD information, brother! Rep $$ transfered.

Thank you sir

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[AdamMaxum]

semi-related - interesting article about Air BNB and landlords getting screwed over by people sub-leasing their rentals. 20k first time fines in some cities is crazy.

Homeowners faced an Airbnb nightmare as renters left them facing huge fines, angry neighbors

 

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[stefan]

Yeah it does seem like prices are slowly creeping over there (based on what I've seen on Numbeo).

Otherwise, Estonia seems almost perfect from an entrepreneurial perspective.

 

[exclusives88]

In May, I am exploring 4 destinations in Eastern Europe (or can be anywhere in Europe really). What are your 4 top choices for good food, beautiful city or views, affordability factor is a plus. I heard Prague is great.

 

[GlobalWealth]

Hey Global, awesome thread. Thanks for the insight here.

You still liking medellin for investment? Looking at a few 3BR properties in the laureles/pablado area right now. Any preference?

Seems like Laureles is growing quite steadily- (starbucks, american chains popping up everywhere)

Depends on what you want. Laureles is probably a bit nicer for living, but Poblado still gets the majority of visitors.


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[Azure]

Belgrade
Sofia
Kiev
Warsaw

 

[JasonR]

You still liking medellin for investment? Looking at a few 3BR properties in the laureles/pablado area right now. Any preference?

Seems like Laureles is growing quite steadily- (starbucks, american chains popping up everywhere)

Both are nice areas. Envigado can be decent as well. I’m also looking for an VR in Medellin. I recommend visiting before you buy.

 

[bringitnow28329]

Is anyone here doing this in South East Asian countries? I am very serious about buying my first place over there in the next year. I realized there are issues with owning the land however this doesn't bother me so much because I am not married, have no kids and don't plan to have any so I just need the property to be mine while I am alive. 50+ years from now doesn't matter to me.

 

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[Liberty T. Vance]

Ummmm, so in other words foreigners CANNOT have 100% ownership.

Yes, you still CANNOT own any land... Similar to other SE Asian countries but setting up a limited company to buy land and/or a house gives you control against losing your house to the Thai person you've chosen as the majority owner...

 

[Liberty T. Vance]

Ummmm, so in other words foreigners CANNOT have 100% ownership.

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Yes, you still CANNOT own any land... Similar to other SE Asian countries but setting up a limited company to buy land and/or a house gives you control against losing your house to the Thai person you've chosen as the majority owner...

 

[Lucid Tech]

@GlobalWealth excellent thread and great value here.

A question regarding taxation for US persons. You mentioned on the first page that you may owe US taxes depending on how the business is structured.

Do you have a preferred legal entity to minimize this? I.e. some sort of legal entity that retains the earnings in the company without having them directly "pass through" to the individual?

Obviously this will vary on the individual's situation, not to be construed as legal advice, etc. but I wonder if there is some sort of preferred investment vehicle to structure offshore real estate purchases for US citizens.

I assume based on your somewhat large number of properties and AirBnB's included liability coverage it does not make sense to have a separate entity for each property.

 

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[Lucid Tech]

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I had a feeling that might be a "consultation call" level of question but wanted to see what I could get away with.

Will contact you when I'm a little further along in the 5 flags path.

 

[ericaung]

Thailand:
Foreigners can have 100% ownership of condos.

I have a friend who lives and owns a real estate company on Koh Samui and his clients set up a limited corporation with a Thai owning 51% and the foreigner 49%. The trick is the foreigner has voting shares and the Thai no voting shares. Therefore, the foreigner controls the land, house, etc...

All of this can change tomorrow... After all it is SE Asia....

Yes, it is true. Even airbnb is illegal in some SE Asian countries. non-US person can buy properties in Europe?

 

[GlobalWealth]

Any updates on emerging markets?
Looks like Medellin and Lisbon has grown a lot and most likely too late to invest now.
What do you think of Argentina / Buenos Aires?

I owned a place in Medellin and sold it about 1.5 years ago for a nice profit.

I've shipped in Lisbon but that's a difficult market as local Portuguese rarely sell their good properties that have been in the family 3 generations. Just my opinion.

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[Angal Faria]

Hey, Global, excellent strategy. Hope it may be helpful for those people who continue their business living in multiple countries. Like me, I am a real estate broker, and my business was UAE, USA, UK, and so more countries. I have three houses in a different zone of the UAE and two in the USA. But in the UK I have no house, and twenty agents see my business there. So now I think to buy a home in the UK for business purposes.

 

[Angal Faria]

I am looking for a four-bedroom apartment for my family from one year in the UK and which I purchased a few days ago.

 

[GlobalWealth]

I was seriously considering this and buying a 1/2br in Medellin Colombia, However how did you find all the paperwork and legal considerations for purchasing property. A lot of people have been ripped off in the contract process.

Do you currently own any property in Colombia?

You can find the answer above.

In Colombia, just make sure you have a good real estate agent and good lawyer.

 

[GlobalWealth]

Dear GlobalWealth,

Amazing article you wrote here. Based in Europe I am a real estate investor on my own but never had the guts to invest outside my home country. As ROI's have come down significantly due to dramatic increases in property prices here I start considering to go international. Two of my favorite destinations where I have stayed already and where I could imagine to buy are Medellin or Bangkok. My biggest concern when investing abroad in Emerging Markets is political risk (e.g. dispossession of one's property by government). What are your thoughts about political risk and how to you integrate this factor in your decision making process?

Best wishes,
Tom

I wouldn't invest if there was any political risk. Thailand is practically impossible as a foreigner but Colombia is easy.

 

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[The Abundant Man]

Has this strategy actually worked for any fastlaners here?

 

[Deleted78083]

If only a few weeks per year would it not feel weird landing and staying in your apartment with people you don’t really know who live there full time?

From this, I can see you don't have much experience living with roommates...I've lived in 6 different countries on three continents, always with "random people". The apartment I'm living in at the moment is my 18th shared house. So yeah, I don't see what is wrong with my strategy. If i live with people (and I wouldn't want to live alone), I'd rather have them paying me rent than paying the landlord.

 

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[Deleted78083]

You're missing the point of this strategy. The point is to have a nice place where you can hang out and rent it while you're not there. What's the point of having a 4-bedroom apartment and sharing your apartment with other people as if you were a broke-a$$ student? IMO this doesn't make sense as long as you have the entire place for yourself and just rent it whenever you're not there. Maximum ROI is not necessarily the main goal here; lifestyle optimization is.

As i said, i wouldn't want to live alone and find the strategy of renting out rooms long-term much simpler, cost effective, time effective and much safer too. I used to know this girl, her job was to take care of one airbnb apartment. One. Full-time. Ofc, it wasn't a sh*tt 20 bucks a night place, but i think one underestimates the time it takes to do airbnb as well as the marginal benefit.

 

[Eddie E]

From this, I can see you don't have much experience living with roommates...I've lived in 6 different countries on three continents, always with "random people". The apartment I'm living in at the moment is my 18th shared house. So yeah, I don't see what is wrong with my strategy. If i live with people (and I wouldn't want to live alone), I'd rather have them paying me rent than paying the landlord.

I’ve I bit of experience lived in 5 countries on 3 continents. nothing wrong with your strategy many people do it, I just found living with roommates very cumbersome sometimes, roommates come and go and you have to find new ones these things happen even in the nicest appartements.
me personally I didn’t always like living with new people just to fill a room for rent fast.
Don’t get me wrong I love the strategy and will likely do something like this in the future when I stop traveling and Settle somewhere but I would only do if I lived there full time.
if I buy a holiday let it would be just that for short term rental and just let a manager deal with it and I just stay there when I want with people I want. Simple

 

[Majy]

I live in Serbia and my parents have a side gig with real-estate.
I personally don't know the prices of the properties, I reckon a single room apartment is around 50k in Belgrade, but what I can offer as advice is that the only places of interest are small apartments in Belgrade, Novi Sad, Nis, and maybe a few other cities. A lot of people from smaller towns come there to study, so a small apartment near a decent college is what you're aiming for. Also, If I recall correctly, the rent is around 500 euros.
If anyone has questions, ask away.

Are you interested in maldives ?

 

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[gpetukhov]

an interesting mix of places you suggest here. Albania i've heard a lot about recently as well.

When you talk about return on cash - unlike most real estate investors in the US, who look at cash-on-cash return and rely on a mortgage, here you are talking about making an outright purchase! That really means a remarkable return if you can get a mortgage.

Yes - but higher mortgage rates and higher down payment requirements decreases COC return

 

[gpetukhov]

Absolutely brilliant thread @GlobalWealth. Reps given!

This is the direction I've been wanting to move in for a few years now - this thread really resonates with me. I've been looking at Montenegro, Panama and New Zealand. NZ is a long term plan (buy a farm there for some income diversity, set it up as high-end farmstay accommodation for additional income when I'm not around).

Panama is slipping from my "to buy" list though as it's damn expensive for what it is. Buying an apartment in Panama City could be the pay off of the century if the place does turn into a Central American Singapore, but as it stands prices are ridiculous for the standard of the country (opinion only).

I'm looking for somewhere slightly warmer for when I'm over the mountain Winters, hence Montenegro. Lots to learn and my fear steps in before I get too serious, but this is the year for massive change. If I take a trip to that part of the world, do you recommend checking out Croatia too, anywhere else in the region? I'm not expecting you to do the research for me, just interested in areas to begin looking.

Would recommend Montenegro - has seen crazy appreciation plus very tax friendly locale

 

[polaroid22]

Looks like prices in Ukraine just kept rising. I thought to myself maybe there are some amazing deals over there atm.

Looked into it some more ==> there’s no lending here, there are no mortgages. And so, as a result, one, the market has a lot of potential to appreciate in value if there was lending. But also, no one has holding costs, no one has mortgage payments to make every month. And as a result, there’s not a strong desire for people to sell their properties, especially individual residential properties, at a significant loss or substantially lower than the market was priced before the current situation. So we’re not seeing a ton of great individual residential deals.

 

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[Sirrom]

@GlobalWealth
Are you still around here?

I’m looking to buy my first investment(s) abroad currently. Ideally i’m looking for a mix of return and enjoyment. I still havent figured out whether I prefer one of the two. Places i’m considering now:

- Portugal: my wife is from there, good weather, developed, reasonably priced, good infrastructure, easy to fly to from Amsterdam.
- Spain: Same as portugal, but Portugal just feels a bit better for me.
- Albania: I’m not sure, but I see this country developing in the future. Good prices and weather. Shitty infrastructure and hard to travel to.
- Italy? Don’t know? Feels like they are stuck in time.
- Morocco: maybe?
- Turkey: maybe?
- Greece: don’t really like it.
- Thailand: Great, but I want to OWN the property.
- Bali: my best friend lives there. It’s really far though.
- Dubai: reasonably priced. Good infrastructure. I feel that this city will continue to grow because they treat entrepreneurs well.

Any more ideas? Ideally it’s not to far from Amsterdam and relatively low priced with good weather.