It ones down to this one rule… Unfortunately, most people break it because they apply the same outdated model as they use in their home country.
Look, I love travelling but even I don’t buy is markets I don’t know.. and by know I mean know in detail as if I was a local.
Hey guys, Bretts Property Rants here. So an interesting thing. We’ve been getting a lot more interest in offshore properties in places like Myanmar and even China and all these sorts of places which aren’t really standard markets. And I think one of the problems is people are going, well actually UK Brexit doesn’t wanna invest there, so where else can I invest?
And they’re starting to look and what’s happening is people are starting to pitch properties because in the local areas they’re not necessarily selling so they’re giving ’em to international investors. And I think one of the problems that you’re gonna face with there is you don’t really know the market.
And what I mean by that is one of my big rules is you’ve gotta know the rules of the game, that’s the fundamental basics sorta thing. If you don’t know the rules of the game in the area that you’re investing in then do not invest there. And I think the problem with places like China and Myanmar and even Vietnam and Thailand and all these sorts of places, and there’s some Eastern European, even though they might be in the EU or coming into the EU or whatever, Turkey, Bulgaria, all these sorts of places.
My concern with a lot of those is you don’t understand the rules that apply to the game. You might think, well actually it’s easy, I’m buying in a good area and it’s X amount loan to value, but if when you look at the terms of the loan and when you look at the market and what it does and then you look at what the government does, and you look at the changes in the market, you look at all these sorts of things and add them up, actually what you’re doing is a big gamble. And that’s my concern with a lot of this sort of stuff is if you’re just doing research based on what a property expert or effectively a salesperson says to you, or maybe you went along to a seminar or something like that, I think you’re gonna be sorely disappointed with what you get in result. And actually you may not, when you buy you might it think it’s great, and I’m seeing this with America even.
The number of people who I know bought in America, we stayed right out of that market, the number of people who bought and actually yes they bought at a discount and they bought super cheap. Some of these guys are buying 20 grand properties, it was amazing apparently, and yet now those 20 grand properties are in an area where you can buy properties for 5 grand, and really yes they’re renting but then they’re also having more problems and then you add all the taxes.
The taxes are ongoing on an annual basis and also the tax is going in and out. At the end of the day, it’s one of these things where if you don’t know all of the rules that apply to the game then my suggestion is stick to your home country. And what I’d say for the most part is don’t go abroad until you’ve got your base built and you’ve got an income coming from that and you know exactly what you’re doing because otherwise, you’re just gonna end up creating a problem for yourself. And you may initially make money but eventually, you’ll start to realize it was probably the wrong mistake, you probably should’ve just bought something down the road and stuck to that.
So be careful with this and you’ve gotta do a massive amount of due diligence, because what you take for granted in your home country you cannot take for granted when you go overseas.
All right guys, have a great day, live with passion. See ya later.