International real estate investment brings its own set of headaches and challenges, believe me. But it also offers a unique opportunity: diversification.
I’ve had calls from people all over North America in the last few weeks, from the Northern Territories in Canada, Georgia and Hawaii all saying the same thing. They want to have assets out of their homeland, the U.S. in particular. Diversification is always a good idea. The primary question they have is similar: Is Uruguay a safe choice?
Well, that’s a good question. To me, it sure appears so. The begs the question, will property here be a good investment? No one knows for sure. My take is this. Your property rights are protected by the Constitution. The political risks are nil. Uruguay has not had a huge run-up in prices…..Ergo! No bubble in sight. Prices are up substantially in the last few years, but this is a recovery from a horrid economic crisis in 2002. The economy here is detached from North America which is a good thing at this moment. So the diversification play is sound on the above criteria.
What other risks are there? The only dark cloud on the horizon is the Dollar and property here is priced in US dollars. Even this is, or will be, a plus for strong currency buyers.
Final word. When investing, there are always risks and the outcome is never clear.
Stay Tuned!
Steve Bowman
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