When I read a
news that tells me a country that holds my investments is having an economic
turmoil because of natural causes, “acts of God” or political unrest, I would
feel surprised. My first action is to know the situation of the nationals in
the country, then to check up on the status of my business investments and their
personnel. Then I assess the damages to the business brought by economic
disasters
I discovered
several optimistic sides when a disaster happens. This may be too objective for
some, but this can be helpful for businesses and investors whose ventures have
gone into literal dust.
During a
disaster, some part of your properties may crumble. In a political unrest, it
is very likely your investment is not a performing asset anymore. It is
important to estimate how long a possible political unrest can be to see if you
can still sell the investment shares for at least 80% of its price. In a
disaster, ensure that you have property insurance to help you rebuild your
structure and even improve on it.
After a
political unrest is resolved, land in such countries become cheap because of
very low economic activity. Investors like me purchase lands and properties in
such countries right after the resolution of trouble. We are even encouraged to
do so to appreciate the prices of these properties. The same can also be said
for disasters. It is an “open season” for investors to develop the land, which
many refuse.
Of course,
before you purchase any land, take good care to research and assess the future
of the land or property you will purchase; it does not mean it is cheap it will
give you something back.
