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simonstanley

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I have a home base in Europe where I spend a good amount of time.

I do not rent this one out, for now. However, I am about to rent a new apartment to live in and make my current home a short term rental.

In this market it is much cheaper to rent than to buy. For example, I looked at a new apartment yesterday that I may move to. It's 100m2, 2br/2ba penthouse with a terrace and floor to ceiling windows. It's a brand new renovation. They want €550/m plus utilities for rent, or to buy it would cost €250,000. I'd be crazy to buy at this price.

I have added 2 units this year and about to add 1-2 more (including my current home mentioned above) before the end of the year.

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Awesome! Another great idea. In buying a home for personal use, I guess there's no reason why you can't turn that into rental later down the line if the math / circumstances / the way you feel about it changes.

I guess my main concern is being "locked down" to one spot if buying someplace to create structure and sturdy foundations, with the intention of being away from it most of the year. Only way to do it I guess is just do it, and the path will become clear.
 

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Awesome! Another great idea. In buying a home for personal use, I guess there's no reason why you can't turn that into rental later down the line if the math / circumstances / the way you feel about it changes.

I guess my main concern is being "locked down" to one spot if buying someplace to create structure and sturdy foundations, with the intention of being away from it most of the year. Only way to do it I guess is just do it, and the path will become clear.
This is how I started. Step by step.

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I just read through this entire thread, and I wanted to thank you GlobalWealth for openly sharing your knowledge with us. It's an awesome gift.

Do you have an opinion on properties in Tallinn?

I have family in Finland, and they love taking the Ferry from Helsinki to Tallinn. They say it's a little bit sunnier in Tallinn, and the cost of living is much more reasonable over there.
 

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I just read through this entire thread, and I wanted to thank you GlobalWealth for openly sharing your knowledge with us. It's an awesome gift.

Do you have an opinion on properties in Tallinn?

I have family in Finland, and they love taking the Ferry from Helsinki to Tallinn. They say it's a little bit sunnier in Tallinn, and the cost of living is much more reasonable over there.
Talinn property prices have gone through a bit of a boom in the last 3 years - its no longer as good of a value as it used to be.
 

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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.
 
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I just read through this entire thread, and I wanted to thank you GlobalWealth for openly sharing your knowledge with us. It's an awesome gift.

Do you have an opinion on properties in Tallinn?

I have family in Finland, and they love taking the Ferry from Helsinki to Tallinn. They say it's a little bit sunnier in Tallinn, and the cost of living is much more reasonable over there.
I find Tallinn overpriced. For short term rentals, I would only consider old town.

The problem is old town is way overpriced now. Anything decent is now over €3000/m2.

Alone that is not necessarily an issue, but the nightly rental rates aren't high enough to support those prices.

Of course deals can be found if you look hard enough. I'm just speaking in general.


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Tony I

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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)
 

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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.
 
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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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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.
Riga
Vilnius
Lisbon
Budapest


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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.
 

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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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Is anyone here doing this in South East Asian countries?
Perhaps someone else can chime in with more experience, but from the traveling I've done it's very difficult for foreigners to own property in most South East Asian countries. You're going to have to do your own research as every country will be very different in terms of laws, ROI (if you can even own), etc.

I have known people to partner with a citizen in the country they are buying in, but that person literally has 100% ownership and you have zero. As far as I know your contract with them wouldn't be legally enforceable.

You can buy apartments in Ho Chi Minh City as a foreigner, but they are so expensive and the rent there so cheap that they would never pan out from a ROI perspective.

I have a friend who has two Villas in Bali on long term leases (2 years). He rents one out as a vacation rental, and the other he lives in / rents out when he's gone. You can make this sort of model work in places like Bali as often times you can get cheap long term rentals, although you'll likely have to furnish the place.

I just listened to a podcast the other day where they rented properties (this is in the US) long term and then used them as vacation rentals with the owners consent. Interesting way of making money without owning anything.

All this being said DO YOUR RESEARCH. It's not impossible, but it is difficult to do in S.E. Asia.

If you were looking from purely an ROI standpoint there's many better places to start your search. If you like living in S.E. Asia, and there many beautiful parts, you may be better off renting. Please post any interesting rules/laws/tidbits you find.
 

Liberty T. Vance

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

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Liberty T. Vance

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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...
 
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Liberty T. Vance

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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...
 

jimmeboy

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Amazing thread, thanks for all the advice @GlobalWealth What a dream it would be to own properties around the world and hop between them! Never see a winter again....

@GlobalWealth if one was to pursue this idea, would it be a tax effective strategy to purchase (and hold) the properties via an Estonian company?

I understand that the rental income / profits could accumulate tax free within the company.

Edit: just noticed you are in Latvia, not Estonia... May still be a useful question to ask so I'll leave it.
 
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UnrealCreative

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I told him to just rent to me for the same price. I was clear it would be to sublet for short term and that I would take care of the place. He said no problem.

So we are signing a one year lease for €450 per month plus utilities (average €100 per moth). I have the option to renew at the end of the year for another year for the same price.
Amazing thread @GlobalWealth . Seriously considering this.

2 Questions...

1: Was there any revenue share agreement in order to get the lease?
I know you have established trust with your neighbor, but if I were to approach a landlord with the idea that the property would be sublet for Vacation Rentals, I'd expect pushback unless there was something "in it" for them for accepting more risk.

After a lot of research, most people who have done these "rent-to-rent" deals usually pay Market Rent + 20% Revenue share on the property. Is this part of your equation?

2: How much did you end up putting down on the 1-Year Lease?
Did the landlord want more upfront because of the risk?

Thanks!
 
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Amazing thread @GlobalWealth . Seriously considering this.

2 Questions...

1: Was there any revenue share agreement in order to get the lease?
I know you have established trust with your neighbor, but if I were to approach a landlord with the idea that the property would be sublet for Vacation Rentals, I'd expect pushback unless there was something "in it" for them for accepting more risk.

After a lot of research, most people who have done these "rent-to-rent" deals usually pay Market Rent + 20% Revenue share on the property. Is this part of your equation?

2: How much did you end up putting down on the 1-Year Lease?
Did the landlord want more upfront because of the risk?

Thanks!
No revenue share. I am paying a normal long term rent price for this apartment.

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Lucid Tech

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@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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@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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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.
 
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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.
The issue is that this type of planning has a lot of variables and structure can vary based on your situation.

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I have a friend who has two Villas in Bali on long term leases (2 years). He rents one out as a vacation rental, and the other he lives in / rents out when he's gone. You can make this sort of model work in places like Bali as often times you can get cheap long term rentals, although you'll likely have to furnish the place.

I just listened to a podcast the other day where they rented properties (this is in the US) long term and then used them as vacation rentals with the owners consent. Interesting way of making money without owning anything.
Interesting. I like the idea of renting long term for 1-2 years and than offering it on sites like AirBnb. First of all you don't need as much capital as if you buy and also it's a lot more flexible.

The risk is low and if you can make it work you can keep scaling it up.
You could rent an appartement in a could location in asia or south america for maybe $3600 per year and rent it on AirBnB for $25/night and $140 per week.
Simple to get started with almost zero risk. If it doesn't work out you can still live in the appartement. If it works you can keep adding more appartements to your portfolio.
I think I will try it out as I wanted to move to asia the next year anyways.

I heard of a guy that does it. He rents appartements long term around the world and than rerents them on AirBnb. Imo the model of renting longterm instead of buying is a lot easier to start with as you don't have so many legal pitfalls.
 

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Hey @GlobalWealth, any new lessons or updates?

I was booking several places recently on Airbnb and man, so many listings suck. One guy even tried to scam me (I booked a place, then a week later he requested additional money as a "weekend fee" and told me to cancel my booking if I don't want to pay - reported him and got my money back).

It's interesting that there are so many listings with good reviews, but that aren't that optimized. They don't have that great pictures (merely okay), they have incomplete descriptions, or use false advertising (I hate it when I want to book an entire house and most listings are for one floor with a separate entrance instead of the entire house). There might be A LOT of listings on Airbnb, but competition is really weak in some destinations. A person with an entrepreneurial mindset could easily dominate in such locations.
 

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oh MAN I could do this.

What are your thoughts on buying in Medellin right now? (Thoughts @JasonR?)

I'm putting my US property buying on hold because we're at the top of the cycle...maybe Colombia is different?
Researching...
 

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Actually, @GlobalWealth had a property in Medellin - he should be able to chime in here.

I was thinking about buying there as their property market seems to be booming. If you're seriously interested I can connect you with a friend of mine who is in the RE industry in Medellin.

You need to be wiling to pay all cash, as I'm pretty sure Foreigners cannot get financing there.

If buying in Medellin, look for a place that has a hotel license. Daily rentals should ROI a bit better than buildings that don't allow short term rentals.
 
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oh MAN I could do this.

What are your thoughts on buying in Medellin right now? (Thoughts @JasonR?)

I'm putting my US property buying on hold because we're at the top of the cycle...maybe Colombia is different?
Researching...
Medellin is very difficult. Only buy in buildings that have a short term rental license otherwise you will have major problems.

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