See also %%riskTolerance: which countries feel OK
DCC[developed commonwealth countries] refers to UK/Aus/NZ/SG
I often feel inferior and second-class about my overseas rEstate portfolio, but it is vague and possibly irrational. Let’s pit my portfolio against theirs.
Paradoxically, in a closer look, mktRisk/NRY/appreciationPotential are not the key yardstick, in the presence of currency hazard .. legwork .. credit risk… economic derailers
Legal cost is much lower than rich countries, though legal process is often less efficient.
— same initial cash outlay: SGD 900<-1000k
Perhaps 2<-3 condos vs mine [Bj + SEAsia]
— 🙂 🙂 currency hazard .. See %%riskTolerance: which countries feel OK
— 🙂 🙂 debt burden. https://tanbinvest.dreamhosters.com/26043/sg-home-buyers-max-out-mtg-quantum/ shows that majority of Singapore home buyers take on the maximum debt burden, to maximize “investment”
— 🙂 cross-currency LIR[ Loan IR] hazard .. See %%riskTolerance: which countries feel OK
— 🙂 prime locations .. see Eynesbury by Resimax as an example
— 🙂 commercial not residentail
— 🙂 taxes are lower
— 🙂 local agency remuneration is lower.
— 🙂 Legal cost (lawyer fees++) is much lower than rich countries, though legal process is often less efficient.
— 🙂 If I have to travel there for sight seeing or problem resolution, total trip cost is lower.
— 👎👎 country-risk::economic .. more mature developed economies
— 👎 country-risk::legislation .. developing countries tend to impose capital control, foreign ownership restriction
≈≈ liquidity ..
👎 presumably less developed market and probably harder to sell than in UK/Aus without a loss
🙂 lower tx costs [fees] require a smaller price gain to break even
🙂 My low-quantum units presumably are affordable to more buyers, therefore easier to sell without loss
≈≈ NRY .. no clear winner..
Before covid, I can only guess UK/Aus NRY (post-tax) is about 2-5% excluding LIR, considering vacancy rate…
🙂 My Cambodia NRY is superior
==== minor factors
— 👎 country-risk::legal .. but after the initial years, FHR improves
— 🙂 geo-diversification .. no clear winner. They might be concentrated in one country, at most two