Investing in Property in Other Countries as a Safeguard for your Family - Update after the Crash!
Has the recent worldwide crash frightened you? Did you maybe think, 'I'm so glad I did not invest in the Hard Asset-WWI offering?'
Before I say anything more, I must confess something I had not mentioned: Because I believe in this project, I have already invested and own about 1,500 Shares in the first property. There you are, now you cannot come along later on and claim I took advantage by buying shares first. I see it as a gesture to all who are thinking of investing that I believe in the project and I will continue to buy first with every new property I put in the pot.
Now, let us visit your fears of the crash - and maybe the worse which is to come? (I am not making any such claim, the MainStreamMedia and various analysts are doing so ... for purposes of their own and not because they are looking out for your interests).
If you think you saved some money by my not being ready yet to allow you to invest, I am going to tell you now that you are wrong and I will explain why I think so.
We have seen other times when prices of property dropped to below the replacement value. Sometimes the drop has been catastrophic and families were destroyed financially. If you think this could happen to your shares here, please take a deep breath and try to analyse what I am about to tell you:
It cannot happen to you with our shares - and the reason is very simple:
We are employing the Power of Large Numbers. In other words, none of us are investing amounts that place us in debt. We pay for our few shares in cash and because we are planning to market this project widely, we believe we will have a Large Number of shareholders...who all paid in cash!
Who is it that forecloses on properties? The banks and other financial institutions, because they lent money - and of course, the contract stipulates (in their own legal jargon) that should the value of your home drop below a certain value, you must either top up in cash or other assets, reducing the loan, or else they auction your home.
Have you seen this happen to people who have paid off their homes or property investments?
Of course not!
Let us take an imaginary example:
Here is a nice property:
Let us imagine the property is purchased for $1,000,000 (market value or less, at time of purchase)
You buy $1,000 worth of shares (20 shares).
Shares for this property are fully subscribed (we hold all cash until we have achieved at least 85% of the cash required - and if this does not happen, we return the cash or else, if you agree, use it to buy another property at the value of what cash we have. I will always invest myself to at least 5%, unless the shares all sell, because everyone can see it is a bargain and will have an extra nice roi.)
Let us say the property earns about 10% annual return for you (let us call it $5 per share).
** The property falls (ultimately) to half the value, so it is now worth $500,000
** The earnings should still remain at the same value since we have longterm rentals (at least annual)
.... so you sit back and watch the low value of your share, maybe slightly saddened, but without any anxiety, for you will continue to earn and can afford to wait for the next upswing in values.
Keep in mind, the market CANNOT stay at the heights it achieves during the cycle and it CANNOT remain in the dip forever. It WILL rise up and go to something beyond what it was purchased for.... usually because the cost of building has skyrocketed.
I hope I have addressed your worries in a way you understand. If you have any questions or lingering worries, please ask. After all, there may be others who also did not understand but are too embarrased to ask.
(Alexander Zenon Eustace)
lol - when I make a post and want you to especially know I stand behind all I say, I will include my photo. Sorry if it spoils your day, but I did try to smile for you :)
10th March, 2020