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I think quicksavedave has got the right balance. Predicting what may happen is fun, but a little like placing a bet on a horse.

I also think 100 year mortgages is more media hearsay. There probably were instances in Japan, but I doubt it was the rule. It is generally known that an ageing polulation brings it’s own problems. You are just going to compound the problem by quick fixes.

My view is let the market play out. There will be winners and loosers, a lesson learnt and if needs be, tighter control and regulation on lending for the future.

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I think you need $13 million to become resident in Singapore, so it’s for the super rich. Malaysia next door is much bigger, and much cheaper, but humidity is infernal. I believe residency isn’t too hard to obtain though. Asheville seems nice from the online brochure. I think it is a great shame that Mexico, with it’s rich cultural heritage and beauty doesn’t do more to cash in on the large number of US retirees. On the other hand if you see what the British have done to Spain, perhaps it wouldn’t be such a good idea. Anyway here are a few useful links.

Useful brief descriptions of countries around the world
http://www.expatfocus.com/expatriate-country-guides

A slightly disorganized but fairly comprehensive source of information
http://www.escapeartist.com/

For business relocation or the tax conscious
http://www.lowtax.net/

A European assimilation tool similar to craigslist, with franchise opportunity.
http://www.angloinfo.com/

My dream would be a place in somewhere like Chamonix, Lake Como, or Cap D’Antibe for part of the year and perhaps Bermuda or Hawaii for the other part.

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I am retired and am desperately trying to find a place to retire to. According to the Lonely Planet guide Panama City has a lot of petty crime, although the upside is that it has good shopping, infrastructure etc. I believe many go to Bocas Del Toro. I went to a seminar on moving to Costa Rica, and got on the next plane home. Security is not good. California is not a place to retire due to cost of living, particularly LA with its lack of centralised facilities.

Americans must remember that it is not possible to live anywhere because many countries have visa restrictions. This would include France and Australia, and most developed countries. Anyway, France has incredibly high tax, and in the Riviera, houses are expensive and not particularly nice. South Africa is not very ‘stable’, has a serious crime problem, and recently had a moratorium on foriegn owned houses. It is developed, had(?) a retirement incentive scheme, is cheaper, and good infrastucture.

There are parts of the world that offer something. Croatia will give you residency if you buy a house. It is still comparatively cheap, has a beautiful coast, and culture and is close to W Europe. Andorra is a tax haven that borders Spain and France, so no tax, modern infrastructure, and you can buy residency for a paltry amount. Houses are quite expensive but not like Monaco. Switzerland, the most civilized country in the world is available for any one over 55 years old. You negotiate your tax based on the house you buy. Restrictions apply.

Things I try to remember when assessing somewhere:

1) Visas, and retirement incentive schemes
2) Security
3) Health care facilities
4) Infrastructure
5) Cost of living
6) Weather and environment

If any one can find a place with a tick by all of these, let me know.

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1. no property taxes
These will be factored into the rent. You think the landlord is paying it for you?
2. no maintenance fees. Call landlord when something breaks.
Hopefully your landord maintains his property, and you don’t break anything out of negligence. These issues can lead to nightmare scenarios.
3. renters insurance costs less than homeowners insurance
Who pays insurance? …biggest scam around.
4. earthquake insurance costs less on a rental (yes, make sure y’all have that earthquake insurance)
How many people pay earthquake insurance?
5. if you’re just getting into the market, rent is much cheaper than a mortgage
I believe that is correct, but how much is much?
6. I can afford to rent in neighborhoods where I can’t afford to buy
It’s easy to jusify a reason for doing something, when it suits us, but the whole point of owning your own home, is the freedom and sense of ownership it gives you, otherwise we wouldn’t do it.
7. No money spent on the constant improvements. No ongoing projects.
I think that comes under repairs above.
8. Husband has more free time, since he’s not gardening, fixing, building, improving, and being a guy in his castle. More time to work on hobbies and spend w/ family.
For some, improving their home and gardening are their hobbies.
9. No ties to a depreciating asset.
Unless of course it is appreciating …which happens after the downturn …usually.
10. No mortgage, no debt. Financial freedom.
But you are still having to pay rent, which is paying somebody else’s mortgage, your landlord can increase the rent, and he can thrown you out.

I am a renter, and a landlord but only agree with 5). The only reason you need, not to buy is you can’t afford it, or don’t want to pay silly prices. The rest of it is swings and roundabouts.

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I buy dollars from sterling, as and when. I am not trading in currencies.

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I moved to the US a couple of years ago, and took advantage of the weak dollar, by exchanging about two thirds of my portfolio. I had hoped that the gains would offset the house price inflation. However, house prices have continued to climb and the current dollar rate would prevent me from returning to Europe. I am glad that I saw wise to keep a chunk in other denominations. Your 20% exposure is hopefully going to serve you.

Regarding Swiss banking, I cannot recommend it. Things have changed since 9/11. For example, Credit Suisse, the second biggest bank in Switzerland, can no longer take intructions from US residents. You would have to fly to Canada or Mexico every time you wanted them to do something. I was also grilled in Zurich airport by an US airline (much to my chagrin), as to what I was doing there. Other people’s experience may be different, but my experience of banks in Europe (I am European) over the last few years, is not good.
Banks in the US seem much less flustered and less paranoid.

Account opening formalities in Europe have become quite vigourous and intrusive. Switzerland has also had to bow down to pressure to accept the EU Savings Directive. Mr Bush also issues administrative subpeona’s to collect huge swathes of swift transfers (international wires), in an attempt to capture terrorists’ movement of funds. I believe this is illegal, and it has had the unfortunate effect of making banks naturally rather jumpy. The new climate of coercive openess has, in my view, resulted in a little retaliatory attitude.

You don’t need a foreign bank account to get foreign currency exposure. Buy if you want one, then avoid HSBC, the new kid on the block. They promote easy foreign account opening procedures if you open an account with them in the US. I tried them but after six months nothing happened. Citibank took just two weeks, and no complaints so far.

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Some years ago I leased a large property in South Africa. The lease was for twenty years, with five year breaks, with one years notice on either side to terminate. The Lessee had agreed to spend “x” amount on improvements, and had right of first refusal to buy. He also had to leave the property in exactly the state he found it.

The lease contract was drawn up by solicitors and worked well for quite a time. It is a sensible way to go when there are many unstable factors in a housing market, as you are not risking capital and the house is more your home than a rental, offering better long term security.

However, there were problems! Although, the lessee knew I would eventually sell when the time was right, his family had become extremely attached to the property. Showing a house to potential buyers with an uncooperative lessee does present a problem. Giving a lessee right of first refusal can deter buyers. Evidence of the condition or state of (dis)repair of property is also fraught with difficulty.

Having said that, I am surprised that this kind of arrangement isn’t more common, as it offers benefits to both parties. As long as a watertight agreement is drawn up, it would offer an alternative to buying or renting. I would certainly consider it, and would like to hear of any options available in soCal.

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Latin America is a place of great interest to me, and Mexico being so close is an obvious first place to explore, and retirees will always move to where their dollar goes further.

I was initially drawn to Costa Rica and went there for a seminar about retiring or living there. It is reputedly one of the safest places in Central America. When we arrived, we took a tour of one the upmarket expat communities, and where shocked by the razor wire and fortress like buildings everwhere. The stories we then were told, and then read about in the local press, made us cut our trip short, and we hopped on the next plane home. (I am well travelled, and have been to some pretty unsavoury places)

If you were to draw up a list of the main things retirees value, security is going to be high up on that list, because the older you are the more vulnerable you are. If you argue that Mexico is as safe or safer than many places in the US, you still have to get over the barrier of “perception”. If Mexico wants boomer dollars, it is my view that the government needs to make a concerted effort to clean up, and reverse the negative “perception”. The nature of the relationship being what it is, I don’t see that happening any time soon.

My wife and I are lovers of all things old, and would love to see some of the old colonial towns in Mexico. If you are Mexican then who better to ask.

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It’s an interesting and hypothetical notion, that if enough people realise that by actively boycotting the market, supply and demand will do the rest. However, markets fluctuate because consumers are fickle and this is the essense of it. A completely rational market would only be possible if we were all robots, and then there wouldn’t be a need for one. Suppose for a moment that if enough buyers got together and decided to collectively boycott house buying, then theoritically it may have the desired effect. However, they would all be competing with each other when they all decided the time was right to buy, and we’d all be back where we started. The fact that some “stupid” people are still buying may well be in the fence sitters’ interests, because if their decision was “stupid” then it will likely have negative consequences.

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Your net worth is your total assets less liablities. If you have $1m in cash today you are a millionaire. However, the statement that if you buy a house tomorrow for $1m in cash, you are no longer a millionaire, seems a little ambiguous.

The flip side is, if you include a property, should you include your cars, antiques, pictures, jewelry? If you exclude your main residence, do you exclude your holiday home that you rent out and that you bought as an investment/second home. Some people buy pictures, antiques and jewelry as items that they make use of, but that can be liquidated in times of need, and hopefully at a profit.

It really boils down to who wants to know, your bank, your buddy, or the local friendly burglar.

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Follow the graphs and stats at on this web site. When there is a consensus that prices have bottomed out and may be on a recovery, that may be the time to buy. If ever you get restless and the irrational itch to buy, go to zillow.com and see what people paid for homes four years ago.

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A 17% fall in median prices might seem like a lot, but when you consider the massive increases over the last few years, the word “crash” doesn’t spring to mind, unless that trend continues and we go back to pre-boom prices. I’m not sure a crash is what anyone wants, but maybe there is an argument that investors will be drawn back to stocks if real estate looks less attractive.

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Thanks SD Realtor. It was nice to know that a realtor is on my side of the fence. We have been looking in the San Gabriel area of LA for two years, but I have been trying to convince my wife to include San Diego which is a more manageable town. We’re not very familiar with it in terms of areas but want to be close to the water. La Jolla is more than we want to pay. I have been relying more on hearsay, news reports, and general observations, rather than number crunching minutiae. I had hoped that Zillow was going to do that for me, but it shows a different picture from the one I wanted to believe. It seems that there are micro climates in the real estate weather patterns, and I notice that Zillow offers a weekly change rate, so you have wonder at its accuracy. As a realtor you are no doubt being confronted with buyers (and sellers) armed with Ziller figures. It must be creating a little friction in the industry.

Oh, by the way, I think your view is very balanced and spot on.

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Do you think they are misleading in any direction ie too high or too low, or accross the board?

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That’s interesting. What you are saying is that a slow market (presumably like the one we have entered) creates a discrepancy between listing and actual sale prices. It makes sense, but how much is that really about people facing the music?

When you say “when foreclosures start”, do you anticipate that happening wholesale soon?

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