Buying Large Tracts of Land as an Investment Pt. 2

Pt. 2 Buying Large Tracts of Land as an Investment

There is a good strategy for buying land as an investment in South America. I would probably exclude the countries of Venezuela, Ecuador and Bolivia for now. In many countries of the region large working farms, hunting preserves and timber areas can be purchased.

Campesinos Sin Tierra and The Mayennes are still a concern; but by operating the property as an ongoing business with onsite staff reduces the odds of encroachment. This also precludes nationalization for the reason of “underutilization”. Hugo Chavez and the other leaders who view him as a role model are exceptions to this possibility. The problem is not that they are socialist or leftist but that they are unpredictable.

In Brazil, Argentina, Uruguay and Chile the property systems are well developed enough that good title is probable. Title insurance is available in these countries. Title insurance is an absolute must. In Peru and Colombia there are also many good opportunities. Colombia offers rather severe security risks in some areas. The second rule of international real estate is “Capital flows to the highest yield with the lowest risk”. A natural corollary to this rule is that the higher the risk the higher the yield. Some chances are worth taking.

My pick of countries for large land purchase are Argentina and Uruguay. If you have an interest in land anywhere in South America, I can help you.


David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com