Let's talk about foreign investment, particularly in emerging economies.

One of the advantages of cryptocurrencies is the fact that it is currently very easy to transact across borders without suffering the fees and limitations of the banking system - and they are many.

That combined with the obvious lack of understanding of the market in those emerging economies makes it difficult to know what to invest in.

So, allow me to open your eyes to the opportunities that lie beyond what you are well versed with.

I have interests in second-hand vehicles which is incredibly profitable, mid-range tech (computers, tech accessories), and property.

Particularly, I will cover the real estate sector which I recently got into the target being the lower to middle-income markets.

Source

There are several things to think about such as local approvals and utilities but those are minimal. In that case, let's look at the main things which are cost of land, cost of building/labor, and rental income.

Cost of Land

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Land is comparatively cheaper in emerging economies than in developed economies.

For instance, the price of a 50 X 100 feet plot goes for anywhere between $2500 to as much as $15,000 depending on the surrounding amenities and the location of that plot. If it is close to a major highway and close to a big town the more it will cost.

For a real case study, I was able to purchase a 80 X 100 in my home town for $25,000. The plot is located in the residential area of the town. A serene, leafy area with a seasonal river running a few meters away. The plot rolls out onto a town road and a primary school less than 100 meters away.

Cost of Building/Labor

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Again, incredibly affordable if you are working with individuals rather than companies.

Indeed, companies will hire these same individual laborers and charge you a premium for hiring them.

The way around this is either hiring a competent foreman or standing in as the foreman. This means you have to be at the construction site every day because the casuals will waste as much time as possible and most likely steal materials to supplement their income.

What makes this the best option is you will save a whole lot in labor and material costs but still achieve the same end which is a quality building. The only trade-off is your time.

On to the structure itself, for a low income to middle-income market, you will better off targeting one-bedroom or two-bedroom houses.

One bedroom houses have the highest demand since students and young working individuals and families prefer them so let's use that as an example.

Estimates for 1 bedroom houses.

Ground floor area = 300m2 Cost of construction assuming $160 per m2 = $48,000 Number of 1 bedroomed units per floor = 5 Construction cost of 5 no. 1 bedroomed = 150m2 x $160 = $24,000

Renal Income

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Assuming you construct 5 no. 1 bedroom houses and have full occupancy, below are the expected revenues.

Rent per month for 1 bedroomed = 5 x $130 = $650 Rent per year = $650 x 12 = $7,800 ROI = 3 years.

$130 for a one-bedroom house is incredibly affordable even for students who often get their rent paid for by their parents while others do online jobs for an income.

There is an entire estate 20 minutes from where I live that is sustained by revenue from online work and is equally served by a massive mall due to the disposable incomes available to the residents of those houses.

Conclusion

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Let's boil all that data down.

Cost of Land = ~$15,000 Cost of Building assuming 5 Units of 1 bedroom houses = $24,000 Rental Income = $7,800

After adding all those major costs ($39.000), you eventually have an ROI of 5 years.

Within 5 years, it is very possible to be generating a maximum of $7,800. In 12 years that is $100k+ for an investment that could potentially be viable for 50+ years.

That being said, permanent investments are not for anyone. If you are one of those, second-hand vehicle selling is incredibly favorable. You can buy a single vehicle, have it stick in your garage and sell it from home and generate 10-20% return on the capital.

The advantage is that you don't have to worry about taxes or licences dipping into the profit.

That makes a beautiful addition to my portfolio alongside my few crypto investments.

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