# Entrepreneur_Thisweek Elhanan Magidovich Post 4- Although this is a group for real estate investments in the US &…
# Entrepreneur_week Elhanan Magidovich Post 4-
While this is a real estate investment group in the US, and I as an investor invested in several countries, see how easily many people investing in the country take it easy regarding overseas investments, the problem is that they go beyond understanding the example: That risk and return go hand in hand.
Since there are many gaps in understanding, they value return advertising without understanding the risks involved and actually miss out on pricing those risks.
That's why I decided to publish a post detailing some of the risks that exist to those living in Israel and decide to invest overseas.
The goal is not to deter readers from investing abroad but simply to make a sober decision and understand that the risks need to be priced at your return.
7-8% returns are marketed:
From the average I made most of the offers / publications on investments abroad talk about 7-8% annual return, there are also various investments that talk about guaranteed return high above 10% but this is limited in time only for 3-5 years.
Hint: Why do you think it's limited in time❓ Because the round is on you.
Hint: Why do you think it's limited in time❓ Because the round is on you.
There are many entrepreneurs and marketers that they are AminesBut on the other hand, there are many publications that promise returns of 7-8% and the Israeli audience is actually queuing up for such returns.
Of course it is very easy to attract people to yields of 7-8% when in the center of the country and in Tel Aviv the yields are 2.5-3% on average and with high property cost which requires a lot of equity, while in the periphery you can still find deals around 4-4.5% on average (there are also More if you know what to do and where to look), but in this post I want to talk about the average, about most of the deals on the market for all investors.
When the inexperienced investor looks at 7-8% abroad compared to 2.5-4.5% in the country, he is already convinced, and runs like a moth drawn in the light of a lantern to stand in line and put his money in these promises.
I decided to make a list of risks in investing abroad so that you understand that investing abroad at 7-8% is not serious and sometimes risky. If you don't know what you're doing.
So what does investing abroad involve?❓
- Understanding the local language will be amazing in some non-English speaking countries.
- If there is no understanding then there is a dependency on interpreters.
- Understanding business culture.
- Availability of reliable information sources. The US is very transparent in this respect, but Eastern European countries really are not❗
- You were unable to evaluate and evaluate the information you receive.
- Dependence on local brokers.
- Dependence on a local attorney.
- Sometimes also dependent on a local notary.
- You do not have the opportunity to understand whether the professionals in sections 6-8 are doing one hand against you (sting).
- Inability to estimate property prices, without reliable sources of information.
- Taxation policy and what the tax treaty says between Israel and the country in which you invest.
- Currency Gaps - Currency gaps can eat up all your profitability.
- The laws of the place in terms of liability and insurance.
- Understanding responsibility and oversight during renovations.
- Dependence on the ongoing management of the property.
- Could you not control the expenses that the management company is spending or consuming on you?
- Once you have purchased, you are the sole owner, property and management company.
- What happens when you want to sell?
- Who will sell the property for you?
- Once again, it depends on the foreign factors and the professionals.
- How do you get the money?
- How to return the money to Israel?
- How are income reported abroad?
- An accountant is needed to report income and an accountant, these are expenses that are reflected in the return.
- In some countries it is advisable to hold a company as a legal entity as the property owner in order to protect the landlord from exposure to lawsuits, as in the US and it also bites at the yield.
- A legal entity has an annual fee.
- A local accountant is needed who will make annual reports and report.
- Depending on the readiness of anything marketed in the country.
- Travel costs and stay in the destination country.
- Regulatory changes and laws in the target country (relevant for BnB investors).
- And the list is long …… long… ..
These and other sections can bite you in yield !!! And they will sing, believe me, there are sections that cannot be shaken.
not me Don't want to scare you From investing abroad, I just want to make you understand how complex investing abroad is, if in Israel making a real estate transaction is a complex event, then abroad it is all the more so.
So I say, I am in favor of overseas real estate investments (And invested abroad) but I have some recommendations for you:
- First, invest in one property in the country (or your country of residence), see if it suits you.
- Invest in a country far from your area of residence from your comfort zone, see if you are built to manage a remote property.
- Any risk that you take or pinned to your investment should be compensated by the return.
- When investing abroad if you are not above 10-12% at a minimum, do not go in, because otherwise you will not be rewarded for the risk in terms of return.
The problem I find with investors in investing abroad is that they are mostly dazzling from the numbers but do not know how to ask the right questions, please read on. And invest As easy as counseling, it can protect you from wrong and amateurish decisions that will cause you losses and especially disappointments and despair.
Full Disclosure: I am invested in Israel and also invested abroad, hence my recommendations are subjective based on my experience and investments.
Pictured: I am on the roof of a building that I considered converting to a hotel in Athens due to its view of the Parthenon in Acropolis.
So how do you even get started ??
Who to turn to and who to trust
When every social app is flooded with advertisements and everyone has an interest?
Excellent post
It is important to buy one apartment in the country of residence
Also in the sense that it gives you an investment world
Also in the sense that you are "linked to the prices of apartments" and also receive income in your currency
The best post here on the EVER forum.
I would only add one paragraph:
A basic misunderstanding of some maintenance expenses and CAPEX is about owning a property, with an emphasis on SFRs in the US.
Post is very important.
thanks buddy
Listen friend: I do not know you, I have never met you, I did not know about you until 6 minutes ago I read what you wrote and I must point out that you are just "identical twin to my mind" !! Finally someone comes and puts the truth (which I have been trying to explain for months) on the table in the clearest and most real way. I not only agree with every word you write - I agree with every letter and every punctuation and numbering you add. Good luck later!
Well… and what came out, is there a hotel overlooking the Acropolis?