[andrewlsummerParticipant@andrewlsummerJoin Date: 2012Post Count: 3]

September 15, 2012 - 10:36 pm

For sure, and I agree with you Ziv.  Actually I didn't know FIji was so bad now, but you're right, it is a balance of doing a thorough and (locally) educated DD, getting to know the culture (i.e. not be completely naive), understand the local law, and using the experience of those who have been and continue to be successful.  There is also property management as a solution too.  I think a point to keep in mind is that nowhere is safe – there is always risk, like with the GFC (your funds evaporate) or when your multi-national corporation goes bust and leaves you with a broken contract/empty building, leaving you with nothing in the hand. But it's great that people have a sense of adventure too and develop and invest overseas.

[andrewlsummerParticipant@andrewlsummerJoin Date: 2012Post Count: 3]

September 14, 2012 - 9:22 pm

Hi Ziv,

 

Of course this depends on the country and some places seem so corrupt you wouldn't want to arrive at their airport let alone purchase property there.  My experience in Fiji and Tonga is that property investment is free of the particularly problem you mention, however the exception is that one property could be sub-leased and then sub-leased again and the person at the end who thinks they are getting something actually gets nothing.

 

So basically you need to check with the local banks that they have nothing on the property.  Then check with Lands & Surveys to see who the property is registered to, to make sure you are dealing with the correct party.  A lawyer can handle this for you and more.  Then it's just asking the local established expats who they dealt with and how they managed to guarantee their piece of paradise.  For example I know there are plenty of guys from the States doing well in Vava'u Tonga running their own tourism operations or resorts without a hitch in these regards and because they have done their 'due diligence'. 

A.

 

 

[andrewlsummerParticipant@andrewlsummerJoin Date: 2012Post Count: 3]

September 13, 2012 - 10:48 pm

There are great opportunities in the South Pacific and this can only get better as the global population expands and those islands resources (like commercial property) increases in demand.

 

Of course, the most important thing to do anywhere is carry out thorough due diligence, even if it's private property to make sure nothing is hanging over the property (mortgage, risk, etc.)  And then a valuation – you might need to go to several agents and don't forget to go to the government agencies too, Land & surveys, etc.

 

At the moment there are great properties in Tonga, for example, like this commercial building http://www.propertytonga.com/commercial-properties.html  and  http://www.propertytonga.com/house-and-land-packages.html  Note the building there returns $17,000 plus a month and it's only a 3 to 4 hour flight from Sydney and Auckland.  So these places are right under our noses, so to speak and do earn good returns when foreign entities are concerned.