Where to Invest?

[AlanAbroad]

Hello everyone,

I made a longwinded post in perhaps the wrong subforum, so will instead post a short version here.

Me: Living abroad in a no tax country making approx. 100k USD, saving 50-60% of it, and have $100k
      USD cash in hand to invest. Every month or two will have more to add.

Question: Should (a) I continue to push into low cost ETF in a no tax country or (b) invest in real estate?
               Finally, I can get financing and leverage.
               
(a) is dead easy and has served me well so far. (b) appeals to me and I feel that with leveraging my money I can make good returns.

Advice please.

[Rob_bob]

I don't see it as an either or question.  You can invest in equity ETF's and real estate.  As far as RE is concerned what is the market like where you are at?  Maybe it's not really a good investment, as they say all RE is local.

Personally I don't want the hassle of directly owning RE, I invest in publicly traded REIT ETF's, easier and better diversification.

[maizefolk]

Are you a citizen of your no-tax country or a temporary expatriate?

In the second case, what are your views of the long term prospects of the country you're currently living in? If you're living in the UAE the super long term prospects for real estate seem questionable, since so much of each country's labor force only has the money to pay rent because of the oil industry.

If you're living in Monaco, it seems more likely that real estate will retain its value in future decades.

[AlanAbroad]

I don't see it as an either or question.  You can invest in equity ETF's and real estate.  As far as RE is concerned what is the market like where you are at?  Maybe it's not really a good investment, as they say all RE is local.

Personally I don't want the hassle of directly owning RE, I invest in publicly traded REIT ETF's, easier and better diversification.

I will be in the UAE soon and will have the option to rent or buy. The market has softened, but outlook is still quite positive. As a case study, I can buy a nice one bedroom seaview condo for $270,000 USD with 25% down payment at approx. 3.5% interest rate. Annual rent for the same unit is $ 1,650 USD a month. Buying has the added benefit of giving myself and family safety and security from intrusive or scamming landlords, rent hikes, vacate notices, etc.

Note: Additionally, if a foreigner purchases real estate in the UAE with a minimum value of 1,000 000 AED ($270,000 USD), they can obtain permanent residence. This is something that is very appealing to me as a long term tax shield.

[AlanAbroad]

Are you a citizen of your no-tax country or a temporary expatriate?

Temporary expat. I will estimate for 3-5 years.

In the second case, what are your views of the long term prospects of the country you're currently living in? If you're living in the UAE the super long term prospects for real estate seem questionable, since so much of each country's labor force only has the money to pay rent because of the oil industry.

If you're living in Monaco, it seems more likely that real estate will retain its value in future decades.

I feel quite positive on the UAE, but there is definitely regional instability, and it is now quite dependent on oil as you mentioned.