Although I don’t agree with much John Maynard Keynes said, this one quote is something that we should all keep in our minds: “The market can stay irrational longer than you can stay solvent.”
Likewise, Jim Rogers has always said that markets can go higher and lower than anyone ever expects.
The take away from both from both Keynes and Rogers is: Just because we think something will happen, doesn’t necessarily mean it will.
So… what am I talking about?
I’m talking about the state of our economy here in the US. I’m talking about how we are currently in one of the longest bull markets ever. How we are ‘due for a correction’ and how all of the fundamental indicators are pointing to a market crash.
The reality is that we will probably see a big correction soon. There is massive corporate debt and the whole economy is propped up by artificial means.
But… the other reality is that much of the world is in even worse shape than the US.
Money has been flocking to the US from China, Mexico, Brazil, Venezuela, and now the EU.
People have lost confidence in many countries worldwide, with Brexit being the most recent event.
I’ve talked about how you can ride this wave of incoming money by investing in US real estate.
However… there is even a better opportunity than that. It’s risky, it takes a lot of work and nobody will support you.
Think about all of those places where the money is leaving like China, Brazil or Mexico. Do you really think that they are that bad?
Yes, they have their problems. Brazil is facing enormous economic challenges, a president that is getting impeached and may be the host to a catastrophic olympic games.
Despite all of those problems, ask yourself this question: Would you receive ownership of a house in Brazil for free?
Of course! Who wouldn’t!?
Now… ask yourself if you had to pay $100. How about $500? $1,000? $10,000?
Everyone has their price, and you’d be shocked what some places are currently selling for. And the even better news (for us) is that it’s probably going to get cheaper before it gets more expensive. The inverse is true in the US.
With that in mind, here are my top five markets for investing in cheap real estate:
1. Colombia
2. Chile
3. South Africa
4. Mexico
5. Portugal
The reason why these five countries above are so cheap is mainly because of currency issues.
That said, I like these five countries because no matter what happens in the world, these countries are very geographically desirable.
Colombia, Chile and South Africa in particular are very VERY cheap right now. Most real estate is selling for less than the cost of construction.
Farm land is being sold for inexpensive prices AND there are homes on the land that are thrown in for free.
I’ll share some pictures and prices of some farms I visited a couple of weeks ago… next time.
***Keep in mind: If you are one of those people who really thinks that everything outside of the US is a ‘no-go zone’, then you are part of the large majority. That means that almost NO ONE is focusing on investing in these ‘dangerous’ places… which means that there is all the more opportunity!
