The Time to Buy
An old real estate saying is: “The time to buy is when the blood is in the streets.” I pulled up some real estate listings in Baghdad, Iraq just to see what you can get for your money when “the blood is in the streets”.
I found a building near the Hanging Bridge with 17 flats and 5 shops that sells for $550,000 US. I don’t have a point of reference to judge the price; but it seems cheap. It is also a “for sale by owner”. This tells me the price probably has significant room for negotiation. The second rule of international business is “Capital flows to the highest yield with the lowest risk”. What kind of yield would someone expect in a place like Baghdad?
Baghdad is one of the worlds major cities. How far fetched is it to assume that one day real estate prices will match those in other major cities? What will one have to endure in the meantime? Is property there something you can just buy and turn over to local management and just not worry about it for a few years? What will be the market landmark that indicates a turnaround in the situation in that country? What other places may offer similar opportunities?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
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