International Real Estate Thoughts II By Gary Scott

International Real Estate Thoughts II

We live in a truly global economy covering every aspect of our lives from love to real estate to war.

Take the September 27, 2005 article "U.S. Weapons, Foreign Flavor" by Leslie Wayne in the New York Times. Here are excerpts of the article:

"At one time, the Pentagon could have obtained all it needed in the United States, but no longer.

"The newest Army spy plane will be a variation of one made by Embraer of Brazil. All the proposals for a coastal combat ship are based on foreign designs. Twelve of the biggest weapon systems used in Iraq - including Predator drones and Tomahawk missiles - could not be built without foreign suppliers.

"Even the next presidential helicopter was designed by Italians and will be built by a British, Italian and American alliance that defeated an all-American team led by United Technologies.

"The Pentagon says an international supply system helps share the cost of research and start-up expenses while making the ties between the United States and its European allies closer.

"Our job is to get the best for the war fighter," said Kenneth Kreig, who was just named the Pentagon's chief weapons buyer. "Innovation is not always bounded by borders.We want the best capability at the most cost-effective price and from the best suppliers we can find.

"You can read the entire article

The point is clear, we should look, buy, live and invest where it is best for us, not just where we happen to have been born or now live.

This is a universal blending of mankind and our ideas, efforts and goals are not without hitches, but in the long run are good and we should taker advantage of this.

 So this week’s messages look at real estate around the world. 

Recently we looked at property opportunity in Croatia. A number of readers have added information we should share.

"Gary I was in Croatia 4 years ago, and I loved it.

"There were several abandoned, vacant hotels there. 

But the real estate situation was somewhat unclear as to how foreigners could get clear title under the Croatian laws and title insurance, etc.

"This could be like the Isle of Man, in the sense that it was once a prime tourist destination, and touristsare coming back to it again (except they never really came back to IOM in a big way). Richard.

"Our son Jake added some comments about Estonia.

Dad, Did you know nearby Estonia recently adopted a flat tax system soon dropping to 20%?

"I've heard a lot of entrepreneurs are heading there to do business. Likewise I've been learning and hearing about Estonia in other ways a lot. Estonia is essentially a part of the Finnish homeland and the culture there is rich and sophisticated. (Even more interesting, modeling agencies have been going there a lot recently because of the beauty of the people. Even Hitler thought the Estonians were one of the few peoples in non-Germanic Europe who could actually enhance German genetics!) The super model Karman Cass is probably one of the best known super models to come out of Estonia.

"In addition Estonia has all that European charm, beautiful old cities with cobbled streets and rural countryside to die for but is very cheap. Sounds pretty neat. Love, Jake.

"This note comes from another reader I have known for over twenty years. He is astute:

"Gary, Just got back from a cruise that included a stop in Dubrovnik.  Incredible beauty in the town and up and down the coast.  I echo the sentiments of your other writers.  One note from the guide that we hired - the greatest number of new property owners are from Ireland!  Having seen the changes in Ireland with a low tax regime, they appreciate the same in Croatia, and recognize the opportunities in one of the most beautiful coastlines in Europe, the Dalmatian coast. 

Split is also the site of Diocletian’s palace and several other Roman ruins.  The other towns along the coast reflect the influence of Venetian dominance for over 500 years.  I think that you and Merri would definitely feel at home there. Carl.

"But we also get a little word of caution from another well traveled reader.

"Gary, Whilst driving around the world with my kids ('72-'73), we spent a fair amount of quality time in (what was then) Yugoslavia & it truly was a terrific place! Of course then it was red but still quite civilized for an American tourist family to wander.

"Dubrovnik is a photographer's paradise & not enough good things can be said about it. Split & Hvar (at least as they were back then). Apparently all still remain much the same, now that the war is over.

But the people can be an amazingly bloody lot. Further: they are definitely rough-edged by our standards. It might be wise to wear gloves when playing with them. Mike.

"There you have it, some excellent comments by experienced well traveled friends. Merri and I are focused on Ecuador but Eastern Europe offers opportunity as well!

Until next message good global investing!

Gary

	International Real Estate Thoughts II was written by Gary Scott