Compass Group Productions

Beware of "Time-Wasters," especially in this new economy!

Over the many years I've had the wonderful opportunity to meet many interesting individuals, especially running a business in a foreign country. In this struggling economy...they've all come out of the woodwork. These are ex-employees, business associates, ex-clients, friends of friends of friends, people that have seen me on TV, or heard me speak in some engagement...all trying to "pitch" me something. I get emails and VM's ranging from, new residential developments in other countries, investment groups that supposedly have hundreds of millions to spend, to produce a new Reality TV show (I get these a lot), MLM (multi-level-marketing), and my personal favorite, "let's partner up and do something!" 

Here's a real funny story. Last year I received a VM from an ex-employee, I haven't heard from him in 3-4 years. Here's the abbreviated VM:

"Mr. Roadhouse! I was on a "Continental" flight reading their "in-flight" magazine - I read an article...and you where in it! You must be doing well...we need to talk because I have an investor group that's looking to purchase struggling developments in Latin America. Please give me a call - we need to catch up!"

I get call's and email's like this on a regular basis. I told myself, "it's probably bullshit but it would be nice to see what he's up to." 

Me (ring, ring): hey it's Will, I'm returning your call.

Mr. BS: What's UP!!! Man, it's good to hear from you - its been years. 

(I don't want to bore you it was a long conversation - so let's get to the funny part)

Me: ...tell me about your group. what are they looking for?

Mr BS: I've been working with a friend (the key word "friend" was the red flag) that works directly with a local group that has at least a hundred million to spend (why does everyone throw around $100M like it's nothing?). They want to purchase struggling off-shore residential and commercial developments...do you have any?

Me: My firm consults for many large developments in Central America, to answer your question - yes. And FYI, all projects in Central America are struggling. I can think of 10 just off the top of my head - I can give you as many as you want. 

Mr BS: Great! I will need a "proforma" on the "top three" projects you feel are the best deal. 

Me: BS...I receive calls like these all the time. My developer and staff spend a lot of time putting these proformas together. Before I do this I need to see proof of funds, I need to know how your partnership works with your "friend," I want to meet with him, and last but not least I will need to speak to one of the asset managers involved with this group. I don't want to spin my wheels for nothing...oh, and one more thing. My developers will not pay one cent in any type of fee's to start this process!

Mr BS: No, I totally understand. There is a small fee to put this package together.

Me: stop there...do not go any further - I'm not interested.
(Mr BS tried a couple more times to sell me on the fee's, I knew it was bullshit)

Mr BS: then, I have another deal with another group - actually two. I have a group that has a portfolio of residential properties at 30 cents on the dollar, they want $4M for it...then, I have another group that we can sell it to for $8M - the commissions are around $1.5M. I just need your help in raising the capital to buy this portfolio.

Me: BS, you don't need me. Why don't you put the buyer and seller together...eliminating "me" the middleman and collect the full commission?

Mr BS: It doesn't work that way.

Me: BS, I've been in the business of negotiating large transactions for a long time. My advice to you...find something else to do - this is all bullshit. The people you are working with are wasting your precious time, and could be scammers. If there is a domestic group with $100M to spend on residential developments in Central America, believe me, they would call me directly or we would've heard it through the grapevine. You know me, I hate to waste time. I'm just humoring you because I wanted to catch-up to see how you were doing. You've trusted me before...trust me now, step away from this, forget about this "bullshit-money." I'm not going to talk about this any further.

(Mr BS was disappointed and was surprised that I didn't want to work with him. He's probably telling himself, "how could he pass up $1.5M in commissions? I haven't talk to him since, later I found out this was a bullshit-deal) 

Making a lot of easy money was the past, many people have a hard time with this because they didn't have to:

- work hard
- be creative

The money just came pouring in. There are many struggling out there looking for the next "quick money." What these people fail to realize, is the one key trait that's consistant from those that are still successful, even in this crappy economic condition..."commitment!" I still know of many real estate brokers/agents, originators, developers, consultants, business owners that are still thriving today! Why? Because they were committed. They've been in their line of work for decades...they didn't step into it last month or last year. Regardless of the economy, these individuals stuck to their guns, perfected their "craft" overtime, and made the necessary tweaks in this ever-changing market. They never give up! Through many years of observation, here are key qualities to look for when an opportunity crosses your path:

- how well do you know this person? were they successful in the past? did their success come from "easy money?" 
- work ethic? 

- organizational skills?

- focus?
- how long have they been in this industry?
- and the most important quality...commitment! Look at their past track record.

Here are a few negative qualities to look for:

- are they "flaky?" or "wishy/washy?" are they always changing their profession? this ties into "Commitment"
- do they have a bad habit of doing too many things at once? stay away from individuals that tend to get involved in many projects at once, again, this shows a lack of "commitment"
- do they come from money? most of the time this is bad more so than good. does Mommy and Daddy bail them out when times are hard. this is the one thing you really need to look at! when times are tough they're not going to pay your bills! i see this too many times, the son or daughter from a wealthy family starting multiple businesses and failing every time, but it doesn't matter - Mommy and Daddy will always bail them out. Many of these individuals don't have the same drive! Oh, and by the way...their staff - not quite the happy ending. They put all this time and effort into this business just to be left with nothing. This comes to my next negative quality to look for..."bad character"
- selfish in general...it will seep it's way into the business and eventually ruin the dynamics of your organization.
- people that talk or brag too damn much!

There is a lot of opportunity in this economy, don't get caught up with morons. Remember, you and your family are solely responsible for your finances...when times are tough, the mass majority will look out for #1 - themselves. You see and hear this every day. How do I know this? I've been working with "wealthy" individuals for over a decade now, and I've establish strong relationship's with my clients, they trust me and I want to learn from their successes...but their failures are more important to me. Living in Newport Beach for many years you learn the importance of dealing with "failures," you will never realize this but you are surrounded by it. 

All of my neighbors have a high net-worth ranging from $10M to hundreds of millions of dollars (I was definitely the poorest one in my block). There was one important life event that happened to many of them, at one point in time...they lost it all. Sometimes multiple times. The lesson's these wonderful people taught me is (this is the abbreviated version): you can't be afraid, control your ego, do what you love, commitment (there's that word again), get involved with the right people but don't rely on them for your success, learn from other's failures (and yours), if you are unsuccessful...make changes...keep trying... but, use your time wisely! 

Those last few words is the point to this story..."use your time wisely!" The average human lives for around 28,000 days - that's not a lot of time...so what are youThose last few words is the point to this story..."use your time wisely!"  You can live in "la la land," but here's an often overlooked statement that no one wants to believe.  

"there are no friends in business!"

That is the sad honest truth.  I...and many others learned this the hard way.  

The average human lives for around 28,000 days - that's not a lot of time...so what are you waiting for? 

-  Will Roadhouse

The Advantages and Disadvantages of Buying International Real Estate

As more people in the U.S. become discouraged with falling real estate values, a faltering economy and higher taxes it is reasonable to surmise that the increasing trend of U.S. citizens purchasing property in foreign countries will continue. Certainly, there are many great opportunities available for the buyer of foreign real estate, however, it is extremely important that the investor performs the necessary due diligence and research before deciding on a country and a property. A short article of this scope could never cover all of the intricacies of purchasing foreign real estate but I will try to cover some main issues to consider along with a few of the advantages and potential pitfalls.

Advantages of Buying Foreign Real Estate

1. Tax Havens. Many real estate owners in the U.S. have been slammed with higher property tax bills because of the real estate bubble that pushed property values. Unfortunately, when prices fell, real estate taxes didn’t fall as quickly. Many real estate owners are now paying taxes on assessed real estate values that don’t accurately reflect the market value of the property. Thankfully, there are actually many places in the world to invest where there are no property taxes at all. One of these places is the country of Ecuador. Many people will find it hard to believe but a U.S. citizen can actually travel to Ecuador and legally purchase an investment home and not pay any annual real estate tax at all.
2. Lower Cost of Ownership. Many property owners in the U.S. have found that it can be extremely expensive to properly maintain their investment or residential real estate. This is primarily due to the high prices of labor in the U.S. Many countries around the world have a surplus of highly qualified construction workers who are paid wages lower than here in the U.S.
3. More for the Money. Even though the U.S. Dollar has a lot of value during the last five years there are still many countries in the world where the investor can buy more with their U.S. dollars than at home. Researching exchange rates and local real estate prices is key to finding a suitable place to invest.

Potential Pitfalls of Buying Foreign Real Estate

1. Political Instability. It is important to carefully research the current level of political stability in the country where you are looking to purchase real estate. Many countries around the world have unstable political environments that can adversely affect a real estate investment. In extreme cases, governments have been known to seize the property owned by foreigners without offering fair or any recompense.
2. Economic Instability. In many parts of the world economic instability can lead to demonstrations and crime. The added cost of having a full time security guard to patrol your property can seriously affect your bottom line. In addition, you may not feel safe in a country with a high level of crime.
3. Local Real Estate Laws. It is extremely important that anyone who is considering the purchase of foreign real estate understand the local real estate laws. The best course of action is to hire a local real estate lawyer who can help you navigate the local legal system. Real estate laws can be very complex in foreign countries and you need to be sure that your rights are protected.

- Ted Karsch

Four blacklisted tax havens agree to mend their ways

PARIS — Four nations will no longer be blacklisted as uncooperative tax havens after they bowed to pressure from world leaders and agreed to implement new rules on financial openness, an international organization said Tuesday.

Angel Gurria, head of the Organization for Economic Cooperation and Development, said in a press conference that the Philippines, Uruguay, Costa Rica and Malaysia have been moved off the black list after they agreed to cooperate with international authorities.

"These four jurisdictions have now made a full commitment to exchange information according to the OECD standard," he said. "This is very important progress."

G-20 leaders meeting in London last week pledged to crack down on tax havens, reflecting concern that banking secrecy has helped disguise the true value of some global assets and cost other countries lost tax income.

Anti-poverty activists say countries with banking secrecy provide corrupt officials with safe havens to stash illicit cash, depriving their nations of needed resources.

The OECD, which represents the developed world, has divided countries into three categories: those who comply with rules on sharing tax information, those who say they will comply but have yet to act, and nations which have not agreed to change banking secrecy practices.

The four countries on the blacklist — the Philippines, Uruguay, Costa Rica and Malaysia — will now join countries like Switzerland and Liechtenstein on a "gray list" of countries that still have to implement their commitment to information-exchange standards.

Gurria said the four countries plan this year to propose legislation that will allow them to comply with OECD standards. Admission to the "white list" depends on the tax havens making good on their promises.

The OECD monitors 84 countries and territories, only 40 of which are on the white list.

The rest, from the Cayman Islands in the Caribbean to Monaco, are under increasing pressure to provide more information to international authorities to prevent people from evading taxes or hiding income by shifting money to those places.

Luxembourg and other gray-listed countries reacted angrily to the OECD's list, with some noting that China managed to have Hong Kong and Macau put in a footnote rather than anywhere on the list.

Jeffrey Owens, director of the OECD's center for tax policy, defended the list, saying it is "based on objective criteria."

Potential sanctions for transgressors include extra audits of those who use tax havens and curbs on tax deductions claimed by businesses using the territories.

Gurria distanced himself from the sanctions, saying they are set by governments and the OECD would not like to see one of its members impose them on another.

- USA Today

Tips To Help Decide About Retiring Abroad

Retiring abroad has become a growing trend in recent years for millions of U.S. retirees. Here are some tips to help you find and research your foreign paradise.

Do Your Homework

Retiring Americans are choosing to emigrate for a variety of reasons—adventure, a better climate, lower cost of living. Whatever your reasons, before you sell the house and kiss the grandkids goodbye, you need to do some homework and learn everything you can about the country and community you're interested in—climate, crime, cost of living, insurance, taxes, visa requirements and more. Some good resources to help you get started are www.internationalliving.com and www.escapeartist.com, which provide tons of information on dozens of countries. Also, check out the Central Intelligence Agency World Factbook at www.cia.gov—click on "Library", then "The World Factbook".

Another good idea is to talk or network with some expatriates who have already made the move you're thinking about making. They can give you tips and suggestions, as well as the advantages and disadvantages and day to day reality of living in a particular country. Some popular sites for finding expat resources are www.liveabroad.com, www.expatexchange.com and www.expatforum.com.

Once you find a country or two that strikes your fancy, you need to visit multiple times at different times of the year so you can get a feel of weather changes. If you like what you see, to find help scoping out potential properties or to find a local real estate agent, visit the International Consortium of Real Estate Associations at www.worldproperties.com.

Need To Know Whether your international retirement plans are seasonal or year-round, here are a few additional areas you need to consider:

• The shrinking dollar. Retiring abroad used to be seen as a surefire way to live beyond your means, and for some countries it still is. But the U.S. dollar has been in a steep decline in recent years, so your money may not stretch as far as you think. To compare currencies, see www.iccfx.com.

• U.S. taxes. Most people aren't aware that even if you're living in a foreign country full-time, you still have to pay federal income taxes. And unless you sell all your U.S. real estate, or live in a no-income tax state (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming) you'll owe state taxes too. For more details see IRS publication 54, "Tax Guide for U.S. Citizens and Resident Aliens Abroad", at www.irs.gov or call 800-829-3676 to have a free copy mailed to you.

• Health care and insurance. While medical care in many foreign countries is vastly improved and very affordable, you need to be aware that Medicare won't cover you outside the U.S. Your best bet is to contact the U.S. embassy or consulate (see usembassy.state.gov) in your destination country to see how you can be covered as a foreign resident. You may want to buy a policy (see www.eglobalhealth.com) that will cover you wherever you live. And for help locating good doctors or hospitals, the nearest U.S. embassy or consulate is again your best resource. You can also search for internationally accredited hospitals at www.jointcommissioninternational.org.

- The Savvy Senior

Most expensive property markets in ‘09

NO SURPRISE. Monte Carlo is Number 1 in the Global Property Guide’s list of world’s most expensive residential real estate markets 2009, more than twice as expensive, at US$45,000 per square metre, as the runner up.

Battling for the number 2 position are prime central Moscow and London. Prime central Moscow’s US$20,853 per square metre price tag slightly outpaces core Prime London’s US$20,756 per square metre, though it is fairer to say the two cities are neck-and-neck.
London residential property prices have fallen for much of 2008, while Moscow property price declines only started in the last quarter, allowing Moscow to catch up with London. Both countries have experienced strong currency declines.

MOST EXPENSIVE PROPERTY MARKETS
(based on 120 sq. m. apartment in city-centre )
Rank    Country     City/ Region    Ave. price
(US$/ sq. m.)

1    Monaco    Monte Carlo    47,578
2    Russia    Moscow    20,853
3    UK    London    20,756
4    Japan    Tokyo     17,998
5    Hong Kong    Hong Kong    16,125
6    USA    New York    14,898
7    France    Paris    12,122
8    Singapore    Singapore     9,701
9    Italy    Rome     9,166
10    India    Mumbai    9,163

Source: Global Property Guide (For the complete list go to www.globalpropertyguide.com)
Tokyo and Hong Kong come in fourth and fifth, respectively.

New York, the only US city included in the survey , is 6th, with an average price of US$15,000 per sq. m.

Completing the top ten most expensive real estate markets are two European cities (Paris at 7th and Rome at 9th) and two other Asian cities (Singapore at 8th and Mumbai at 10th). Average prices range from US$9,000 per sq. m. to US$12,000 per sq. m.

The figures are based on the average price of a 120 sq. m. apartment in the city centres of more than 110 cities around the world, typically the economic centres where most foreigners are likely to buy. Data were collected during 2008. The US dollar exchange rate used is that of January 27, 2009.

BARGAIN HUNTERS’ DREAM

For global bargain hunters, there are several places where property prices are relatively cheap, for example parts of the Middle East, Latin America and Asia.

Cairo, Egypt is one of the cheapest cities in the world, with prime city centre prices at around US$600 per sq. m. Another Middle Eastern capital in the bottom 10 is Amman, Jordan, with average city centre prices at US$1,150 per sq. m.

Three Asian cities are included in the 10 cheapest, all located in rapidly growing and heavily populated countries, Bangalore in India, Chengdu in China and Jakarta in Indonesia.

Chengdu, damaged during the magnitude 8.0 earthquake in 2008, remains a vital economic, transportation and communication hub in the heartland of China.

Indonesia was the last country to recover from the 1997 Asian Financial Crisis. However, the economic reforms implemented by the Yudhoyono administration are setting the stage for steady economic growth.
Five Latin American cities complete the list of 10 cheapest cities for property buyers - Concepcion and Santiago in Chile, Quito in Ecuador, Managua in Ecuador, and Lima in Peru.

The same countries also tend to earn good rental yield.

OVERVALUED

Rental yields are generally below 5% in most European cities, suggesting that property is still overvalued.

LEAST EXPENSIVE PROPERTY MARKETS

(based on 120 sq. m. apartment in city-centre )
Rank    Country     City/ Region    Ave. price
(US$/ sq. m.)

112    Egypt    Cairo     574
111    India    Bangalore    657
110    Chile     Concepcion    669
109    Ecuador    Quito    820
108    China    Chengdu    999
107    Nicaragua    Managua    1,080
106    Indonesia    Jakarta    1,102
105    Jordan    Amman    1,150
104    Peru     Lima    1,154
103    Chile     Santiago    1,221

Source: Global Property Guide (For the complete list go to www.globalpropertyguide.com)
Rental yields are generally below four percent in the following cities: Munich, Barcelona, Vilnius, Helsinki, Madrid, Rome, and Nicosia. Rental yields in Europe are lowest on Andorra at 2.2% and Athens at 2.7%.

Rental yields are between 4% and 5% in major cities such as Brussels, Tokyo, Berlin, Moscow, Copenhagen, Warsaw, New York, Shanghai, Paris, London and Geneva.

Returns from rental investments are also relatively low in key Asian cities such as Singapore and Hong Kong and in almost all Indian cities (Bangalore, New Delhi, and Mumbai)

Only six cities have rental yields of more than 10%, led by Chisinau with an average gross rental return of 14%. The Moldovan capital is followed by Cairo, Jakarta, Manila, Skopje and Lima.

High returns can also be expected in Latin American cities. Yields range from 8% to 10% in Panama City (Panama), Bogota (Colombia), Managua (Nicaragua), Santiago (Chile), Buenos Aires (Argentina), and Quito (Ecuador).

Rental yields in Kula Lumpur (Malaysia) and Amman (Jordan) are also typically above 9%.

HOUSE PRICE MOVEMENTS

The recent house price boom and bust defeats the traditional notion that real estate prices are based primarily on local conditions.

The relatively low cost and ease of moving capital around the world has made it easier for people to invest in real estate markets in several countries. This is complemented by the relatively lower cost of international air transport. Several countries have also removed foreign ownership restrictions, a move encouraged by the Organization for Economic Cooperation and Development (OECD) and the European Union.

The result of these changes has been a remarkable increase in cross country real estate investments � helping make the boom, and the bust, truly global.
Highest gross rental yields (%)

Rank    Country    City/ Region    Annual Yield

1    Moldova    Chisinau    14.17%
2    Egypt    Cairo     12.00%
3    Indonesia    Jakarta    11.27%
4    Philippines    Manila    10.99%
5    Macedonia    Skopje    10.11%
6    Peru     Lima    10.09%
7    Panama    Panama City    9.98%
8    Jordan    Amman    9.73%
9    Malaysia    Kuala Lumpur    9.22%
10    Colombia    Bogota    9.19%
11    Nicaragua    Managua    9.12%
12    Chile     Concepci�n    9.04%
13    Netherlands    The Hague    8.97%
14    Chile     Santiago    8.87%
15    Argentina    Buenos Aires    8.85%
16    Jamaica    Kingston     8.80%
17    Ecuador    Quito    8.77%
18    Bahamas    Nassau    8.37%
19    Russia    St. Petersburg    8.15%
20    Trinidad & Tobago    Trinidad    8.14%

Source: Global Property Guide (For the complete list go to www.globalpropertyguide.com)
RENTAL YIELDS FREQUENTLY ASKED QUESTIONS:

1. What does rental yield mean? Why is it important?
The gross annual rental income expressed as a percentage of today’s property purchase price. This is what a landlord can expect as return to his investment.  The rental yield is one useful yardstick of whether property is over-valued or under-valued.

2. What assumptions are made in presenting the Global Property Guide price and rents data?
We are interested in the sort of properties which will be attractive to foreign renters. This is not always the same type of property in all locations.

Foreign renters are usually interested in properties which are in excellent condition, with good facilities, and which have been refurbished or redecorated within the last five years. Our properties are therefore likely to be less expensive than the very newest properties, except where new-builds dominate the market.

In European cities, we lean towards properties in the historic city centres, therefore our typical property is more likely to be a 90-year old refurbished apartment of character, than a newly built apartment.

3. What are the sources of the Guides price data? Can these sources be trusted?
We draw our figures from our own, in-house analysis. Our research is based on a simple yet effective method we systematically scan web advertisements for residential property, looking at offers for sale, and offers for rent, of good (but not new) apartments.

Despite its simplicity, with care and commitment to consistency this method can produce quality results. We begin by defining key upper-end rental districts in the capital city. We take care to keep a database of where the properties are located, so as to ensure consistency in subsequent years. We carefully select appropriate price ranges. We take average prices, rejecting deviant outliers. Buyers of the full data set have access to these comparability specifications.

The data measures up well to data provided by national statistical organizations, where these are available for comparison, and usually performs better than multi-housing organization data.

-  Global Property Guide

Emerging Tax Havens for High Net Worth Individuals

WHAT do Central American nation Belize and Mauritius - a tropical island in the Indian Ocean off the African coast - have in common?  And there are more destinations: Macedonia, Liechtenstein, Nevis, Grand Bahama, Dubai, and the Turks and Caicos ... the list isn't short.

According to the United States National Bureau of Economic Research, these places are tax havens; countries "offering low to zero tax" that are trying to out rival each other with tax breaks to lure high net worth individuals (HNWIs) into residing there.

Wealth management company Optimus Wealth's managing director Paul Panayi said "old money" seem to prefer established "safe havens" such as Monte Carlo, Switzerland or Monaco - where properties are very costly, particularly Monaco where a bank account deposit of at least STG500,000 (RM2.8 million) is also required.

However, a growing number of HNWIs who have done well in business but might not be super wealthy are eying the newer tax-friendly destinations.

Among them are Dubai, Mauritius and the Caribbean, especially the latter where the rich can live in idyllic surroundings and save money while doing so.

Also popular with HNWIs is Mauritius, which Panayi said "has no capital gains or inheritance tax, a corporation tax capped at 15 per cent and a strong economy with an annual growth rate of six per cent".

The downside, though, is that "foreigners can only buy new property in an Integrated Resort Scheme that's designed to keep real estate high-end.

"So if your dream is to lovingly restore an old plantation house, it isn't the island for you," he said.

Specialist currency exchange company Caxton FX chief James Hickman suggested Belize "for somewhere less conventional", noting "it's one of the best tax havens with no capital gains tax or estate tax ... and non-residents as well as offshore companies can repatriate their earnings tax-free under certain provisions".

Its government also encourages foreigners to own real estate there.

From the U.S. Department of State: Residing Abroad

What You Should Know If You Are Residing Abroad or Are Planning to Reside Abroad

Whether you are planning to move abroad or are already residing outside of the U.S., you should review the information that appears above about safe travel and consular services available to you, since most of it applies equally to U.S. citizens residing abroad.  The following is information about services you are more likely to need if you are residing abroad.  

Marriage, Birth, Divorce and Death Abroad 

Marriage Abroad

U.S. consular officers abroad cannot perform marriages.  Depending on the law of the foreign country, local civil or religious officials generally perform marriages. 

Procedures vary from country to country, and some require lengthy preparation. 

• Many countries have requirements that the parties have been resident in that country for a specified period of time before a marriage may be performed there. 
• There may be requirements for blood tests, etc. 
• There may be requirements for parental consent.
• There are also, in many countries, a requirement that documents certifying the end of a previous relationship (such as a death or divorce certificate) be submitted, translated into the local language and authenticated. 
• Some countries require an affidavit by the parties as proof of legal capacity to enter into a marriage contract.  (This affidavit can be executed at a U.S. Embassy or Consulate.) 

The process can be time-consuming and expensive, and, therefore, persons planning to marry in a foreign country should find out the requirements of that particular country before beginning travel.  Contact the embassy or tourist information bureau of the country where you plan to marry to learn the specific requirements. A listing of foreign embassies and consulates in the U.S. is available on the Department of State’s website at   http://www.state.gov/s/cpr/rls/dpl/32122.htm.   Foreign embassy and consulate contact information can also be found on the Country Specific Information for each country.  If you are already abroad, consult with the nearest U.S. Embassy or Consulate. 

Once your marriage has taken place abroad, U.S. consular officers can authenticate your foreign marriage document.  Note that this authentication simply signifies that your foreign marriage documents are real; it does not necessarily mean that your marriage will be recognized by your home state in the U.S.  If you are married abroad and need confirmation that your marriage will be recognized in the United States, consult the Attorney General of your state of residence in the United States.

For further information, visit the Department of State website at  http://www.travel.state.gov/law/info/marriage/marriage_644.html.  

Birth Abroad of a U.S. Citizen

Most children born abroad to a U.S. citizen parent or parents acquire U.S. citizenship at birth.  As soon as possible after the birth, the U.S. citizen parent should contact the nearest U.S.  Embassy or Consulate.  If the consul determines that the child has acquired U.S. citizenship, a consular officer prepares a Consular Report of Birth Abroad of a Citizen of the United States of America (Form FS-240).  This document is recognized in the United States as proof of acquisition of U.S. citizenship, and it is acceptable evidence of citizenship for obtaining a passport, entering school, and most other purposes.  Failure to document a child promptly as a U.S. citizen may cause hardship for the parents or child later on when attempting to obtain a passport or register for school.  For further information, visit the Department of State website at http://www.travel.state.gov/law/info/overseas/overseas_703.html. 

Divorce Abroad

The validity of divorces obtained overseas will vary according to the requirements of an individual’s state of residence.  Consult the authorities of your state of residence in the United States for these requirements.  For further information about recognition of a divorce obtained abroad, go to the Department of State website at http://www.travel.state.gov/law/info/marriage/marriage_641.html.

Death Abroad

One of the most important tasks of U.S. consular officers abroad is to provide assistance to the families of U.S. citizens who die abroad.  For more information about consular assistance when an American citizen has died abroad, see “Death of a U.S. Citizen Abroad,” which appears above under “Emergencies, Consular Assistance and Crises Abroad.”  Further information may also be found on the Department of State website at http://travel.state.gov/travel/tips/emergencies/emergencies_1205.html#death.

Federal Benefits Services Abroad

Prior to your move abroad you should contact the federal agency (Social Security Administration, Veterans Affairs, Railroad Retirement Board, or Office of Personnel Management) from which you receive a monthly check to report your change of address.  This will help you avoid a lost or delayed check.  Even if your payments are being sent to a bank, you must provide the federal agency with your new address.  You should also contact the U.S. Embassy or Consulate nearest your place of residence upon your arrival and advise them of your current address.  Each time you move while living abroad, you should notify the U.S. Embassy or Consulate at least 60 days prior to your move.  This will enable the federal agency to update its records so your checks are sent to your new address.

In many countries, you are able to have your monthly checks deposited directly into your account at either a financial institution in the country where you live or a U.S. financial institution.  To determine if direct deposit is available in the country where you plan to reside, or to sign up for direct deposit, contact the federal agency from which you receive payment.

If your check does not arrive or you have other questions about your federal benefits, contact a consular officer at the nearest U.S. Embassy or Consulate.  If the consular officer cannot answer your inquiry, he or she will contact the regional federal benefits officer for your area and make inquiries on your behalf.

Further information may also be found on the Department of State website at http://www.travel.state.gov/travel/living/living_1234.html. 

Driver’s License

It is illegal to drive without a valid license and insurance in many countries.  You should check with the Embassy of the country where you plan to reside, to find out more about driver’s license requirements.  A listing of foreign embassies and consulates in the U.S. is available on the Department of State’s website at  http://www.state.gov/s/cpr/rls/dpl/32122.htm.   Foreign embassy and consulate contact information can also be found on the Country Specific Information for each country.

Many countries do not recognize a U.S. driver’s license.  Some, however, will accept an international driver’s permit.  It is nevertheless a good idea to qualify for a local driver’s license as soon as possible, since international driver’s permits are not always valid for the length of a stay abroad, and often are only valid if presented in conjunction with a valid U.S. or local license.  To renew a U.S. driver’s license, contact the Department of Motor Vehicles in your home state. 

Absentee Voting in U.S. Elections

Americans who reside abroad are usually eligible to vote by absentee ballot in all federal elections and may also be eligible to vote in many state and local U.S. elections.  Eligibility depends upon the laws and regulations of your state of residence in the United States.  To vote absentee, you must meet state voter registration requirements and apply to the state of your last domicile for a ballot as early as permitted.  If possible, register for absentee voting before you move abroad.  Check with your local voting authority for requirements and procedures.

After you have registered for an absentee ballot, and if your state ballot does not arrive in sufficient time, you may be eligible to use a Federal Write-in Absentee Ballot (FWAB).  You should contact the Voting Assistance Officer at the nearest U.S. Embassy or Consulate for additional information, or visit the Department of State website at http://www.travel.state.gov/law/info/info_2964.html.

Selective Service Registration

Section I-202 of the Presidential Proclamation of July 2, 1980, reinstituting registration under the Military Selective Service Act, states:  “Citizens of the United States who are to be registered and who are not in the United States on any of the days set aside for their registration, shall present themselves at a U.S. Embassy or Consulate for registration before a diplomatic or consular officer of the United States or before a registrar duly appointed by a diplomatic or consular officer of the United States.  Check with the nearest U.S. Embassy or Consulate if you need to comply.” 

Be Prepared for Emergencies

The following link contains materials about being prepared for emergencies while residing abroad.  It was written for persons assigned to American Embassies or Consulates abroad, but most of it is practical advice that would be useful to anyone living outside of their own country:  http://www.state.gov/www/flo/paper10.html.

Global lending opens up more overseas property buying

Much has been made about the increasing number of foreigners who are buying real estate in the states, and with good reason. But there's another, albeit smaller trend that hasn't received much attention -- that of Americans buying property in prime vacation and retirement spots outside the United States.

Coverage of home buying and selling, housing prices, mortgage information and home improvement.

We have always been able to buy property in other countries at a fraction of what it would cost for a similar place in the states, especially in the Caribbean and Latin America. With the sagging dollar, our money doesn't go as far anymore and the overseas action just isn't what it used to be.

However, when currency exchange rates return to normal, if they ever do, U.S. citizens looking to cast their lot in another country are likely to find it a far less adventurous task than it was just a few years back.

"Right now, most international activity is from foreigners buying in America, but soon it will begin going the other way," says David Michonski of Coldwell Banker Kennedy Hunt in New York and the National Association of Realtors' liaison for international operations. "All the infrastructure is in place for (buying real estate overseas) to be a huge megatrend. The world is getting flatter."

One thing that stands to help buyers overseas is that real estate brokers in 32 countries now belong to the International Consortium of Real Estate Associations, which has adopted a code of ethics that members in all countries have agreed to follow. ICREA also has created a transactional referral system that Michonski says "helps grease the wheels."

There also are numerous Web sites where would-be buyers can search for property in far-flung places from the comfort of their own homes. One of the better ones, www.GlobalPropertyGuide.com, offers research and information on buying residential property in 131 countries.

"It's important for a residential investor be able to see what his likely return on investment will be, what his taxes will be, to be able quickly to check whether the laws are landlord-friendly, to survey the inheritance laws," says publisher Matthew Montagu-Pollock. "All this is now available, for almost every country in the world, on our site, without any marketing material or any attempt to sell you anything -- just the facts."

You may be able to obtain similar information from the various U.S. State Department offices and consulates in the particularly country you are considering. But the data available from our own government is spotty at best.

For what it's worth, Michonski, the Realtors' go-to guy on international matters, and others believe the final piece of the cross-border puzzle is in place, now that several lending institutions offer American-style financing for people who want to own a villa on a Belize beach or a house in Honduras. "This is clearly the trend of the future," says Michonski, who has been working globally since 1984.

Do Your Due Diligence

Thailand

As with any major investment, when buying property in a foreign country, it is important to do your due diligence.

Focus on getting facts and information about all the steps of your transaction. This means you need to understand what exactly you are buying, what the purchase includes and what the limitations (if any) are. In many countries, there are restrictions on building heights, setbacks, and other construction details which a buyer needs to be aware of before committing to purchasing and building there.

While the Internet has made real estate investing and land purchasing easier, it is wise to approach any large transactions from a perspective of information gathering and fact-finding. Never buy homes or land without visiting them for yourself.

It can be tempting to try and purchase a beautiful piece of land from the Internet pictures, but you can make a grave mistake if you end up paying for land, or a home, or some property which is not what you actually take ownership of at the completion of the sale.

Some areas in Costa Rica can not be built upon, but since there are few regulations on who can sell land; the unwary buyer may end up purchasing land which can never be built on. This is why doing your due diligence is extremely important when shopping for a vacation home.

It is important, also, to work with professionals who know the details of investing in this country. Select a company or individual who has experience in this area, who has successfully sold to other happy buyers, and, who, ideally, has purchased property in the country him or herself. Keep looking until you find someone with whom you work well, and don’t hesitate to get expert advice and ask a lot of questions.

The more you know, the better prepared you will be to make a good decision.

Retiring Abroad

By Jim MillerOctober 15, 2008 - 12:00 a.m. EST

Dear Savvy Senior,

Can you recommend some good resources to help people interested in retiring abroad? My wife and I will be retiring in a few years and have always thought it would be fun, and more affordable, to live abroad. What can you tell us?

Adventure Seekers

Dear Seekers,

Retiring abroad has become a growing trend in recent years for millions of U.S. retirees. Here are some tips to help you find and research your foreign paradise.

Do Your Homework

Retiring Americans are choosing to emigrate for a variety of reasons — adventure, a better climate, lower cost of living. Whatever your reasons, before you sell the house and kiss the grandkids good-bye, you need to do some homework and learn everything you can about the country and community you’re interested in — climate, crime, cost of living, insurance, taxes, visa requirements and more. Some good resources to help you get started are www.internationalliving.com and www.escapeartist.com, which provide tons of information on dozens of countries. Also check out the Central Intelligence Agency World Factbook at www.cia.gov – click on “Library,” then “The World Factbook.”

Another good tip is to talk or network with some expatriates who have already made the move you’re thinking about making. They can give you tips and suggestions, as well as the advantages and disadvantages and day-to-day reality of living in a particular country. Some popular sites to finding expat resources are www.liveabroad.com, www.expatexchange.com and www.expatforum.com.

Once you find a country or two that strikes your fancy, you need to visit multiple times at different times of the year so you can get a feel of weather changes. If you like what you see, to find help scoping out potential properties, or to find a local real estate agent visit the International Consortium of Real Estate Associations at www.worldproperties.com.

Click here to read the full letter.