Well, they just keep raising interest rates in the US, don’t they in? Is that makes it more expensive for us as Real Estate Investors to take out a loan and purchase a property. It’s also affecting the rest of the whole world and it’s creating a lot of international opportunities so I want to talk about that a little bit more this week.

Welcome to short-term rental riches will discuss investing in real estate but with a specific focus on short-term rentals quick actionable items to acquire manage and scale Your portfolio. I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast for a living. And really interesting times, right now, the economy, like every week, we get some new news and it’s just things are going up and down. What are the things that are going up? As we all know our interest rates and it’s affecting the whole world.

So, I want to talk about that and how we have a lot of opportunities outside of the US. Currently, as many of, you know, I’ve spent a lot of time outside of the US spend, most my time in Brazil and Colombia, and I have for the last six years, but I’ve also been traveling for a really long time, like, 20 years as much as I possibly can, it’s how I got into real estate in the beginning, I wanted passive income so that I could do that. I remember going to Europe years ago and I took out 300 Euros, out of the ATM and it cost 450 American dollars, the exchange rate at that time was about one year 0 to a dollar. Be it was really expensive at those times especially as a broke Backpacker driving around. I think twice if I wanted to buy those beers in the bar because a six-dollar beer was like 10 bucks back then, so exchange rates, they really affect us as Travelers. But they also are very important when it comes to international investment opportunities and as many of you know, if you’ve listened to the podcast for a while and you own property in Colombia and Brazil.

So, I want to break down this week. Some of the opportunities that we have Tuna teased, for plan B’s, if you here, so you know, buying another residence, buying a vacation, rental residence in another country. This is very helpful for diversifying and in my lifetime. The dollar has never been this strong. So I want to try to break this down as simply as I can. It is a complicated subject because we’re talking about macroeconomics and there’s a lot of inputs that go into

macroeconomics and one of those are interest rates and our global economy. Economy. So as we raise interest rates in the US, the u.s. you’re not aware is what the rest of the world primarily uses to trade. It is a global currency is reserve, currency of the world. And so alot of other countries are using US dollars to purchase Goods to purchase Commodities. And as the US dollar, gets more expensive as it does when we raise interest rates, that means that it gets more expensive for the rest of the world that needs those dollars.

In other words, there’s more demand Manned on the US dollar right now and just like when there’s more Demand on a rental property, the price of that goes up, right? So for those of us in the u.s., we’re on the right side, The Beneficial side, I should say of this, but for the rest ofthe world, things are getting tougher and for those countries that are much more reliant on the US. Well, it’s getting even more difficult for them.

Here in Colombia at the moment, I just pulled up a chart with the Colombian peso versus the US dollar. And if you look over the last Ten years. I use a website called X e.com to look up. They do a really good job of just allowing you to convert currencies really easily. So if you’re traveling around, which right now is a good time for international travel, right? It’s cheaper for us, that are earning US dollars. But if you pull up a chart on etsy.com, you will see that the Colombian Peso has lost like 130 percent to the US dollar in the last 10 years.

So that’s crazy, right. That means that, if you To buy a property in Colombia, it’s going to be way way cheaper than it. Would have been10 years ago. The real estate prices here in Medellin. For example, have definitely not gone down 130%. They’ve actually gone up quite a bit, so we get to buy that same real estate as an example with a much more powerful dollar. Costing us Less in the end.

Now, this isn’t to say that things can’t flip around, you know, the whole world is using these Fiat currencies thataren’t really backed by anything anymore. Our US dollar used to be backed by gold and they took it off the gold standard. And that’s when we just started printing a whole bunch of money because we can write we don’t have to have that big Reserve but this is having serious impacts on the rest of the world. If you want a great explanation, you can check out a guy named Brent Johnson. There’s a lot of YouTube videos out there about his

milkshake Theory and basically what it says is it as our US dollar gets more expensive and Same amount of people, need our US dollar for trading, they rush in or US dollar putting more Demand on it, which increases the value of our US dollar. So to break it down another way. If Columbia, for example owes the US a thousand dollars in US dollars and they’re going to exchange their pesos today for those dollars than they would have today’s exchange rate.

But what happens if the dollar keeps getting more valuable and in one month they go to pay a little bit. Bit more of that thousand dollar debt but the Colombian pesos dropped another five percent in comparison to the dollar. Well that means that deck. Just got five percent more expensive. So in order to preserve wealth, preserve purchasing power people are rushing into countries are rushing into the u.s. dollar to buy dollars, to preserve their wealth, to be able to pay back these debts with the value of today’s dollar and not a dollar in the future that’s more expensive.

So again, I know this is a complicated subject and I am not Best person to explain this. So hopefully that made sense. I know this is really deep topic but I want to talk about the opportunities here so we can leave the US if we’re earning US Dollars and we can move to lots of places around the world that are much cheaper for us to live now than they were just six months ago. Now not to say this can change and it can’t go back the other direction.

But for a lot of us we can work remotely now, right? And so, this is putting a lot of Demand on International short term rentals. I have I’ve never seen so many people down here in Columbia and I’m excited to say that I did acquire a lot, two and a half acres with a good friend of mine here in Medellin. And we’re going through architectural plans right now to develop some short-term rentals and a couple homes on that lot. The nice thing about this lot is that we’re actually going to be able to charge dollars. So we can construct and pesos, but we can charge and dollars.

Now, that’s not an opportunity that’s available everywhere. But if you do your research, I think you will find it. It Is available and alot of different places. I want to get to the risks of investing internationally and there are a lot of them. So this is not like just you pick a place on a map and you decide to invest sir there’s a lot that goes into this but it can provide a lot of diversification. And if there was ever a time ever a time for you to invest outside of the US, most listeners is podcaster in the US. Well, that time is now or it’s in the near future.

We covered a lot of topics on this podcast and a quick action will bite size. Format. So you have the tools to acquire, and improve your short-term rentals on your own. But if you want to go deeper, I have a special invite for you. Join us once a month that are rested, investor Clubhouse, where we go in-depth on an individual topic, everything from analyzing properties to improving operations and or bottom line, we cover it all the clubhouse members and myself are sharing best practices to earn. The most Revenue with the least amount of headache and I would love to have you there as well.

That’s rest methods.com /r. Our lives are shaped by those. We spend the most time with. So if you want to take your Str to the next level, come join us. I hope to see you on the inside. So just to recap here, as we continue to raise interest rates, in the US, that puts more Demand on the US dollar making the US dollar stronger. That means if we’re exchanging our dollars for other currencies, like the Colombian Peso, well, we’re getting more of those pesos and at the same time, the cost of

Of everyday living in Columbia, for example, is not changing that much. So if we go out and we buy a dinner at a restaurant that price of that dinner is not changing because the value of our dollar is changing. And so I was just in Europe and same thing there. It’s a one-to-one ratio almost so it’s cheaper for us to invest internationally now cheaper for us to live internationally.

It’s a great backup plan. If you happen to have money lying around or you ever wanted that plan B Property check out X e.com and you can see the differences between the US dollar and the exchange rates, not all of them have lost a lot of value against the US dollar. Brazil, for example, is very self-sufficient, they have a ton of their own Commodities. They’re less reliant on the US dollar and so they have not lost a lot of value, but a lot a lot of countries have, if you do decide to just investigate

buying property outside of the US, I really recommend that you go Go back and check out a couple of my prior episodes episode 79 and talk about buying property and Brazil and also a lot of the things, just the general things that you need to look out for. If you’re investing internationally, I really recommend having a lawyer that speaks your language language. Again, is another thing that you need to be considerate of, is it? Something you’re comfortable with whether politics can change? All of these things are real significant risk.

So make sure that you really think those through, you can also check out episode D6. I talk about more tips there so if you ever want to explore outside the US and you have it now. Well, it’s going to be cheaper for you. If you ever wanted a plan B option outside the US, it’s very likely going to be cheaper for you as well, but make sure you do your homework and if you want to just sit on the sidelines and not lose aton of value from your US Dollars.

Well one thing that you can do is buy some US Treasury so is the interest rates go up. That means the interest. That we can earn goes up on a lot of Investments including us. Treasuries and so those are one of the safest options. You can do check that out. If you’ve got some cash laying around, I hope that gave you a little insight. If there was ever a place that you or just interested in traveling to or check it out, well, it’s probably cheaper than it was a year ago now.

So, I hope you’re doing well out there. I hope they gave you a little insight and I hope it reminded you that there really is two sides to every story here. So, as it gets more expensive in the US it’s also getting cheaper. Us outside the US. Until next time I hope you have a fabulous week. Want to get on the fast track to Financial Freedom through short-term rentals what all starts with the properties you acquire. But you want to make sure that you acquired the right properties, I want to give you my eBook. That will show you how to do just that. There is no charge. It’s my gift to you for being one of our subscribers. Just go to restmethods.com that’s REST methods.com

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