Time To Invest In The Global Real Estate Market?

Where To Buy Global Property?

First Published Date: May 04, 2009

It cannot have escaped anyone’s attention that much of the world is at the moment in the grip of a financial crisis that has hit all sectors hard, but none more so than the real estate market. The fact that the crisis is global has meant that even the good old standby of moving into the next country to invest has lost some of its appeal as an idea, as it is just as likely if not more so, to see your investment fail to some up to the standards you had hoped to reach. In light of this, it becomes a matter of looking further afield. While this is the most internationally damaging property crisis most of us have ever seen, there are some countries that have weathered the storm a good deal better than others – and are presenting opportunities for the real estate investor to spread their wings.

Take any of the world’s heavyweight economies, and right now they are doing a pretty good impersonation of a defeated heavyweight boxer – slumped on the canvas with a bloody nose and black eyes. Some, like Canada, have fairly superficial damage compared to others, which have been pummelled to the extent where they are barely recognizable. Meanwhile, some of the less heralded countries are doing just fine, because they did not fall into the trap of building an economy on unsustainable lending, nor have they been closely linked with the countries who did. And these countries are the ones where it may well be worth having a throw of the real estate dice. Their economies are stable, prices are lower than in the more bloated economies, and the countries themselves are beginning to carry some real weight in the financial world.

The truth of the matter is that, a few decades ago, people would have laughed long and hard at the idea that Poland or the Czech Republic would be worthwhile sites for real estate investment. Right now, judging by the Polish Prime Minister’s recent jibe at UK Premier Gordon Brown, the laughing is going in the opposite direction. Poland as a nation declined to move towards a credit-based economy and as a result is doing just fine. Real estate opportunities are popping up all the time and this seems likely to continue with unemployment on the way down.

Alternatively, you may want to invest somewhere warmer. The opportunities on offer in the North of Africa now might be just the thing for you. Like Poland and the Czech Republic, Morocco has thrived while more illustrious near neighbours have taken a beating. Property prices are on the rise there, but are still well below what you would pay in a bigger economy, and Western investors are getting in there with its proximity to Europe making it a beacon for the region’s tourist industry. The coastlines of this African paradise are breathtaking, and just the kind of thing that would look perfect on a property portfolio. Dare you take the plunge? It could be the best decision you ever make.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on May 4, 2009.

How to Buy an RRSP?

What Is An RRSP?

First Published Date: December 28, 2008

An RRSP (registered retirement savings plan) is not something you actually buy. You buy qualified investments to hold inside an RRSP. This is a type of account and you can hold a variety of products inside your RRSP.

What Products You Can Buy?

You can buy mutual funds, GICs, stocks, savings account and so on. These are just some basic products to mention. There are many other investment products you can buy and hold inside your RRSP account.

Is It Complicated?

Depending on what you are buying, it can be complicated to buy certain products such as stocks, bonds, etc. In my book Invest Now, I have described in detail how to buy these products. Today, in simple words, I will explain how you can open your first RRSP in a snap.

Two Easy Solutions for Novice Investors

Option One – Walk Into Your Local Bank

This is the easiest way to buy. Just walk into your local bank branch and your personal banker will be able to explain ins and outs of RRSP and what products you can buy based on your personal needs. Most of the banks have a variety of products to choose from, and you can pick the one that best suits your needs.

I like the idea of opening an RRSP in your local branch because it is very easy and simple. This option gives you the opportunity to talk to a live person, and you can hold your RRSP with the same institution you are already dealing with – that translates into less hassle and paperwork. Also, you have the option to transfer your money into your RRSP from your chequing or savings account.

Option Two – Do It Online

Financial institutions like ING Direct or President Choice Financial let you purchase RRSP online. This is good in one sense that you are doing everything from the comfort of your own home; however, there is no one sitting in front of you to answer your questions. Although they do have customer support to call, it’s not the same as talking to a person in front of you.

Final Word

One major advantage of going to a bank is that bankers are able to recommend and advise products based on your individual needs. However, this is not the case if you choose online option. Customer service reps will answer your questions and guide you through the procedures to choose a product, but they are not licensed to advise.

These are the basic and simple procedures to buy your RRSP. If you are looking to buy a wider variety of products, I would recommend award-winning book Invest Now – available at Chapters.Indigo bookstores and at all online retailers.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Dec 28, 2008.

The Dark Side of Retiring Abroad

Retiring in Low-Cost Countries May Not Be As Glorious As It Seems

First Published Date: December 29, 2014

It’s hard not to come across those alluring and glorious ads, websites, and stories about retiring in a low-cost country. The promise of living in a heavenly beach resort bungalow or ocean-view condo for $1000 per month is hard to pass on. However, things may not as glamorous as promised. Before you board a plane to a tropical paradise to catch your dream, consider all the ins and outs of living in a foreign country. Today, I will mention a few of them.

Security – This is my number one concern. These low-cost countries where heaven is promised for $1000 or even less a month are still 3rd world countries. Security and law enforcement are nowhere near comparable to countries like Canada, USA, Australia, and so on. If you keep an eye on news, you will often come across those where foreign retirees in these countries were killed in their ocean-view bungalows by intruders during a robbery. Are you willing to take your chances and live somewhere where corruption is widespread and security is non-existent?

Friends and Family – Living in a foreign country means you are losing your network of relatives and friends and also the support you receive from them. Yes, you can communicate via Internet or phone, or even possibly visit them once every few years – but it’s not the same when you have your friends and family available for you 24/7.

Health Care – Access to universal health care is a must-have during retirement years. Even if you are able to buy healthcare in these low-cost countries, it will not be nowhere near in quality and technological advancement as your home country. Also, if your are from a country like Canada where health care is free, you will have to spend a lot of money for health care in your new host country, and as you get older health care spending will grow larger.

These are only a few I mentioned above. There are much more, as retiring abroad adds layers of complexity to every aspect of life. Before deciding on moving abroad, do your homework and make educated decisions to live a happy life, whether at home or in a foreign country.

Condos in Panama

Panama Real Estate Investment

Published Date: May30, 2009

The first thing anyone will say if you ask them to mention something about Panama will undoubtedly be the canal. Some will even work in the famous palindromic pronouncement by Leigh Mercer: “A man, a plan, a canal. Panama!”. And when a nation of such limited size is dominated by a large – and very famous – canal, then it is no surprise that that will be the case. The Panama canal plays a major part for the country’s importing and exporting, for its transport and tourism. Although there is clearly much more to Panama than the canal, it would equally be pig-headed to deny its importance.

One element of Panama’s wider importance, however, is its real estate market. Investors from all around are looking at picking up property in Panama – and with good reasons, too. It is an investment opportunity that is worth investigation at the very least. Panama, being as it is the southernmost country in North/Central America, is therefore something of a frontier before one crosses from one part of America into another, quite radically different part. This makes it a crucially important spot in the Americas, frequently passed through by people traveling from the North to the South or vice versa. It has thus become the fastest-growing economy in Central America and the largest per capita consumer.

A country of such economic importance in the region will therefore need to be attractive to visitors. With the location a dual benefit – both in terms of people planning to travel through and, thanks to the scenery and the climate, also ready to stop here for a holiday – Panama will bring people in, almost without effort. It is keeping them around for long enough that needs to be addressed – something which is happening currently and is manifesting itself in, among other things, an improved real estate sector. This is where much of the external investment in Panama is coming from.

Oceanside apartments in Panama are cheap. This is one major reason why investors are interested, and it does not come at the expense of quality. There are many new builds as the Panamanian government aims to take greater advantage of the tiny nation’s geographic good fortune. Developments like those in Bocas del Toro are liable to catch the attention of any potential real estate investor, whatever the price. When one discovers that luxury apartments can be had for less than a quarter of a million dollars – and that prices will rise as demand does the same – it makes total sense that investment is a consideration for many.

For anyone looking to purchase real estate in Panama, there is good news in the fact that laws allow outside real estate investment to run very smoothly, with almost no restrictions on the process. If you are looking for an investment in an area with geographical importance, which attracts tourism and business, and will not cost you the Earth, then Panama is a very worthwhile place to look. There is every chance to turn a profit or just find a retirement or holiday property here. It’s really up to you.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on May 30, 2009.

More Ahmed Dawn Articles

How Credit Cards Work

Credit Cards

First Published Date: January 11, 2009

With the amount of talking that is done about credit cards, very little pertains to the actual details of how they work, how they should be used, and the different kinds of cards available. It is known more or less by everyone that when a person is in a lot of personal debt they tend to owe large amounts on credit cards – what are less widely known is how this situation comes about, how to avoid it and how a borrower can use a card to their advantage.

As short a description of how credit cards work as possible, first. A customer looking for greater spending power enters into an agreement with a bank, where the bank issues a card allowing a certain amount of spending (a credit limit). Any purchases made go on the balance of the card, against which a payment must be made every month. Should the balance reach or exceed the credit limit, no further spending will be possible until a payment is made to bring the customer in line with the agreement.

Debt problems with credit cards occur when a customer borrows beyond their means or their circumstances change. In theory, the bank will not lend an amount that the customer will not be able to pay back. However, the checks put in place to prevent this happening are not foolproof, and circumstances are always liable to change. A credit agreement is given based on a customer’s earnings, but should they suddenly lose their job they may find themselves unable to make full payments to their card. For this reason, it is wise to have some savings should you take out a credit card.

There are now more choices than ever for a customer looking to take out a credit card – these different options take into account the varying circumstances and needs of customers. A popular type of card is the low-interest/no interest credit card, which allows the customer to borrow money for a large purchase and then use a “zero interest” period to pay off the balance over the course of a number of months.

Interest-free periods when they were first introduced tended to last three months, but as banks compete for an increasingly crowded market it is becoming the norm for banks to offer as long as a year interest-free. When this period is ending, a customer will often transfer the balance to a new card. If done assiduously, this can see the customer avoiding having to make a payment for years at a time.

Other cards take account of the spending habits of the customer by offering cash back on purchases, Air Miles when the card is used in certain locations, and reward points for frequent use. A recent innovation making it possible for the customer to use plastic even when they find credit hard to come by, the Secured Credit Card allows the customer to “load” money on to their card and use it like a bank account – meaning they never spend money they do not have. These cards also enable the customer to build a good credit rating through regular loading.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Jan 11, 2009