The World’s Most Valuable Commodity

I consider overseas real estate to be the most valuable commodity in the world and the number-one investment opportunity in the world.

After all, what’s the most valuable stuff in human history?

It’s not gold… or oil… or even food…

It’s land.

Property is the basis for civilization. It’s where you can base a city, raise a family, mine for gold, grow crops, breed animals…

The National Bureau of Economic Research published a study covering 150 years up to the modern day. Compared to equities, bonds, and treasury bills, real estate boasts the best long-term return of any asset class.

Real estate’s value can almost never go to zero—unlike stocks. Plus, you can actually enjoy your property when you’re not using it for cash flow.

And Real Estate Overseas?

Here’s where you need to consider the opportunities of the frontier…

There are opportunities to be found in countries like Belize or Montenegro that will never, ever exist in America again. That’s precisely why countries like these are on my radar.

I’m talking about the opportunity to get in ahead of the curve, to stake your claim in a particular location before it’s fully developed, and to profit as it matures.

The United States and Canada are mature markets—that opportunity is gone.

But in Belize, Montenegro, and other locations that I keep my eye on…

Let’s take Belize as an example. As a speaker pointed out at a recent conference I hosted, Belize right now is in the “sweet spot.”

Just a couple decades ago, it was a country only divers and fishermen had heard of. Then cruise ships began bringing tourists to Ambergris Caye, Belize’s “paradise isle.” It started to take off as a family destination…

I’ve seen Belize’s construction boom firsthand. Its development is on an upward curve. It’s got all the appeal of Caribbean hot spots like the Bahamas, but its real estate is half the price.

The opportunity is to buy now and profit as prices converge with other top-tier Caribbean destinations. Meanwhile, cash flows in from renting…

These are the kind of “sweet spot” opportunities that, as I say, you have to be looking in the right places to find.

But the benefits of owning overseas real estate go far beyond that…

A piece of property in another country could be your second home, a vacation spot, your escape hatch, or your ultimate retirement plan.

Real estate overseas also brings diversification—of currency, of market, and of asset type….

Plus, the IRS doesn’t require you to report property abroad in your tax filings, though certain deductions are available if you do.

In short, the purchase of a piece of real estate overseas could bring you profits, privacy, and a tax break.

My expectation when investing in real estate—in the right markets—is to double my money in three to five years.

If I’m looking for cash flow, I’m usually not interested unless I know it can give me returns of at least 5% net a year…

You don’t need to be rich to get started in overseas real estate investing… I began my property investing career with just $5,000.

Today, I’ve turned that modest sum into a multimillion-dollar property portfolio… one diversified across multiple continents, markets, industries, and currencies.

If Wall Street collapses tomorrow, I’ll be OK, thanks to my overseas property portfolio.

Even during the pandemic a few years ago, which devasted the holiday rental industry, I still made money thanks to my investments in farming and other essential services…

Real estate abroad boasts privacy, tax savings, and profits—plus, it’s more affordable.

These are hard assets that go up and up in value over time…

Worst case? I can live in my property and enjoy it myself whenever I want.

Bottom line: Property overseas is an asset that every investor in the world must have in their portfolio.

Lief’s Philosophy: Cash Flow Is King

While land has intrinsic value and real estate can almost never be worth nothing, it is true, of course, that real estate markets can crash and prices can plunge. The crisis of 2008 started as a real estate/mortgage crisis…

This is certainly a worry if you’re primarily relying on capital appreciation… on real estate prices to go up so you can sell…

If your main concern is rental cash flow, the situation is entirely different. You don’t face the same challenges to your income…

With my property investments, at this point in my career, I’m primarily interested in the rental cash flow I can achieve rather than the value of the property going up.

The reason for this is simple: Rental cash flow is true passive income. And it’s an income you can rely on even as the value of your property goes up or down or as economic conditions ebb and flow.

You may face other challenges, of course, in a recession (reduced rent payments, etc.).

But this is also why it’s important to own in different countries and in different markets.

There are parts of the world—Northern Brazil, for example—that were entirely unaffected by the price plunge across the Western world post-2008.

Invest for cash flow and passive income. And invest for diversification and to protect your overall net worth. If you get capital appreciation, that’s the gravy.

This is my personal investment philosophy.

Stay diversified,

Lief Simon

Director, Overseas Property Alert