The hows and whys of equity release

by Lisa Hartwell

What is equity release and why should I consider it?
Equity release is a term commonly used to indicate the release of capital in some shape or form. If you own a property that is unencumbered (i.e. without mortgage), or even if you have a mortgage on it, this capital is the equity you have in the property. You can release some of this capital to make improvements to the property or to use at your own leisure for a personal project.

Negotiation 101

International Living Postcards-- Saturday Edition

Saturday, Feb. 17, 2007
Paris, France

When you buy real estate overseas, it's a lot like buying souvenirs at a local market; negotiating is expected. The price will go up if you appear too eager…unwittingly insult the vendor, and the whole deal may be off.

I was reminded of this when I was in Romania a few weeks ago. A developer I work with told me about a deal he helped put together…which he had to watch fall apart. An Irish developer, the story goes, planning a project near Bucharest, was in the market for a type of property (had been in the market for two years, in fact). My Romanian contact had found a suitable property, and the price was right.

Everything was set. The Irish developer's local contacts lined up a meeting between him and the land owner. Big mistake. I'm told the "lieutenants" do the deals in Romania. Bringing in the final decision maker to meet the land owner wasn't a good move.

Is it worth paying a broker fee?

by Lisa Hartwell

Only three years ago, there were about three local brokers offering to assist with the arrangement of mortgages in Spain. Today, dozens have sprung up, but not all are serious professionals.

Why contact a broker?
By going through a professional broker you will automatically have access to numerous banks. Your broker should do the legwork for you and source the best and the most varied products available on the market. This can save you time and money. For instance, banks occasionally change their criteria. Although your estate agent or solicitor may have recommended a particular bank in the past, your application may be refused because of the sudden change. A professional broker will always submit your application to at least four banks to prevent this from happening. He or she can also prevent loss of your deposit: if you only apply to one bank, you could lose your deposit if you don't close on the date set in the contract.

They Laughed When I Talked About $100,000 Houses, But When They Come to Visit…

International Living Postcards-- Saturday Edition

Saturday, Feb. 10, 2007
Paris, France

Last week I talked about good value properties for $50,000 (see below). Let's up the ante this week to $100,000. Again, you can buy property in the States for $100,000…but consider what you're buying.

I did a quick, non-exhaustive search of what you could buy in the gulf area of Alabama and Florida for this price range. Slim pickings. Under the "as is" section of one website, I found a distressed, 1,100-square-foot property in Florida, built in 1943, listed for $96,900. Based on the photo, the house might be nice, once you put the work into it. I'm guessing this isn't in a good neighborhood. However, it is in Pensacola, and, therefore, not far from the ocean.

What Can You Get For $50,000?

International Living Postcards-- Saturday Edition

Saturday, Feb. 3, 2007
Paris, France

I can find properties in the U.S. that cost less than a condo in Panama City or a beach house in Honduras. So, why do I bother traversing the globe in search of those international property deals I tell you about each week? Here's why: I'm not in the cheap property business; I'm in the good value property business. If the point is simply to buy something cheap, you've no reason to look outside the U.S. You can find inexpensive housing in Florida…but the price you'll pay for something five miles from the beach in the Sunshine State will get you something in Central America with an ocean view (and probably better quality). Comparing apples to apples, Latin America almost always wins on pricing.

However, you can find inexpensive properties overseas. "Inexpensive" is a relative term, but we'll start at the lowest reasonable price range this week: around the $50,000 mark.

The Best Piece of Real Estate to Buy Today

International Living Postcards-- Saturday Edition

Saturday, Jan. 20, 2007
Paris, France

Where is the best place for you to buy (or invest) in real estate today?

Unfortunately, there is no one answer to that question. Much depends on two things: the type of "investment" that you're looking for; and how that investment fits into your overall plan.

Start by deciding why you're buying the real estate. Think of all real estate falling into a continuum with one end being your personal residence and the other end being pure investment. For your personal residence, many factors influence what you buy, but the most important one is whether you enjoy spending time in the property. On the pure investment end, again there are many factors, including the projected return, your overall diversification strategy, and how the investment fits into your portfolio.

What's Wrong With REITs?

International Living Postcards--Saturday Edition

Saturday, Jan. 13, 2007
Paris, France

I'm often asked about the real estate portfolio I manage, spread, as it is, around the world. Isn't it difficult to keep on top of everything, readers wonder. Believe it or not, as long as you are diversified in the types of property you invest in, and arrange for good local managers, you can keep the administration to a manageable minimum.

The only way to virtually eliminate the need to pay attention to your real estate investments is to make them indirect. The trade-off is that you lose control over the productive asset…you can't make the decision to improve a property for better returns or raise the rent, for example.

Saddle Up, Caballeros!

International Living Postcards-- Saturday Edition

Saturday, Dec. 30, 2006

An empty stucco building in a small Bolivian village, circa 1909. Bleeding, cornered, and low on ammo, Paul Newman and Robert Redford desperately come up with what needs to be their greatest plan ever, as hundreds of soldiers close in. As plans go, it's a stinker. It involves a boat, Australia, and a doomed belief that as long as Lefors isn't outside, they have a chance.

They don't, of course, and Butch and Sundance go out in a blaze of glory in my all-time favorite Western.

What, you may ask, has prompted this real estate editor to recall a 40-year-old movie? It was the e-mail below, from my roving Latin America real estate scout Dan Prescher, detailing opportunities in Central America where you could enjoy an equestrian lifestyle…no matter your budget. Increasingly in this part of the world, developers are beginning to include stables and horse riding facilities as part of their master plans. The result can be a lot more fun for a whole less dinero.