Before I start on the topic, here’s an insight into my summer strategy (and no, not trying to make you envious): Since I began playing golf in earnest this summer, been running into some real cool global-focused-investors, I’ve been able to get an outside-in perspective through them of the U.S property market, from folks in Mexico, China, Thailand, Malaysia, India and the Middle-East..
I decided to return the favor by discussing some of those countries, with their input, and some first hand-travel (told you not trying to make you jealous); my long term goal is develop this blog as platform for some these well-recognized investors to share their joint perspectives with me.. for now, you can look up my Twitter feed to see those I follow.
So, China, South-East Asia, Middle-East? How are the Real Estate markets doing? Should you buy into any of those (as in major upside possible)… Ok, here’s a simple trick I use to simplify a complex question like that: Declaring at the outset “I’m NOT worried about the Upside, just making sure there is no Downside.. and focusing on rental yields”..
Now, if you are following my blogs, the theme is always about fixed income, NOT price appreciation. Definitely, from a risk-mitigation, we do analyze properties for down-side, but upside should be a bonus, not the focus.
If you are with me thus far, read up on some of the other blogs, you will a clear answer emerging: The question is re-framed as WHERE are the good rental pockets in those countries? Answer: as anywhere, where Job creation engine is good, where there are supply constraints in housing. Vacation Rentals: This definitely is a class of properties that should be high on your shopping menu, as there are some amazing bargains in some resort pockets now (will get specific in a separate blog)…
<to be continued in part II>