Non-economic Risk in International Real Estate
The two major concerns other than economic issues in International Real Estate are personal security and property security. Reading the news or the government advisories can give the impression of almost impossible conditions. The only way to know is to go.
I have traveled in countries whose security conditions were supposed to be horrible and found things to be at least as safe as conditions in my home town.
I take the attitude that I would not invest my money anywhere that I am afraid to take my body. In many cases the danger of kidnapping, terror events, robbery or civil unrest make visiting or investing unwise at best.
Property security is another matter. There are very few places outside of the USA and Western Europe where you can leave property unattended. Not only is the property subject to break-ins and things of that nature; but it may be occupied by someone that is difficult or impossible to remove.
There are several national and international organizations that specialize in takeovers of private or public properties. The Mayennes in Brazil and Campesinos sin Tierra in Spanish speaking South America are just two. Their basic modus operandi is to wait for a long holiday, when the courts are closed, and mass people and materials close to the target property. They can build and entire village in a long weekend. The governments usually do not have the political will to displace them. The property owner just loses.
In rental properties it is essential to examine closely the procedures for eviction in the locale of the investment. Some places have simple legal procedures others have regimes that are virtually impossible. Sometimes the rules for commercial and residential are different. Even temporary rental of a vacation home can turn into a nightmare in some areas.
David Segrest is a REALTOR in Charlotte, NC
David S. Segrest, CIPS, CCIM, TRC, CEA
david@segrestrealty.com
http://www.segrestrealty.com
Serving the world in the Carolinas, Serving the Carolinas in the World
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment