          
          
          
          
                     THE GLOBAL REAL ESTATE SPECULATOR
          
               There are several ways you can build your wealth
          by using global real estate.  In some cases, the
          property is just so cheap that it will have to rise in
          price -- furnishing nice tax-free compounding of your
          investment.  In other instances, there are special
          angles that will allow you to get overseas property
          FREE.
          
          Real estate bargains in Bulgaria
          
               If you ask a Bulgarian, he may tell you it is
          already too late to make a killing in Bulgarian real
          estate.  To a Bulgarian, real estate prices have
          already skyrocketed out of control there.  In the town
          of Razlog, for example, two studio apartments are for
          sale.  A year ago, they would have sold for 20,000
          levs; today, they are on the market for 200,000 levs. 
          A one-bedroom apartment in the Mladost residential area
          of Sofia, the country's capital, is on the market for
          400,000 levs -- 10 times what it would have sold for a
          year ago. 
               In dollars, however, those apartments can be had
          for $10,000 and $21,000, respectively. 
               Bargains are not the only reason to consider
          investing in Bulgarian real estate.  This little
          country, situated on the Black Sea, is well-positioned
          to benefit from the dramatic changes taking place
          throughout Eastern Europe as a whole.  And unlike
          Yugoslavia, for example, it does not suffer from
          internal strife.
               You may, however, have some trouble finding the
          property in the first place.  Not a lot of people in
          the country are interested in selling.  City apartments
          make up most of the current market. 
               Once you've purchased real estate in Bulgaria,
          too, you must decide what to do with it.  You probably
          will want to rent it out, in order to keep money coming
          in on your investment.  Your best option is to rent to
          a foreign company for hard currency.  But this is
          easier said than done because the competition for hard
          currency is strong. 
               It's much easier to rent in the local currency,
          the lev, and try to convert your levs to hard currency. 
          Bear in mind that the lev will probably continue to
          fall against the dollar for some time. 
               Still, privatization of state-owned properties,
          such as restaurants, farms, and hotels, will keep the
          bargains coming.  As of this writing, the Trade and
          Foreign Investment acts have not yet been passed by
          Bulgaria's Grand National Assembly -- but when they
          are, these new laws will provide additional foreign
          investment opportunities.  Soon you will be able to own
          a luxury downtown apartment, purchase a seaside villa,
          or own a chalet in the mountains -- all for peanuts in
          dollar terms. 
               And in a few years, real estate prices may indeed
          be skyrocketing, not only in the eyes of the Bulgarian
          people, but in the eyes of the world as well.
          
          Farming around the world
          
               In a world of struggling real estate markets,
          farmland can still be a good buy.  For example, a 100-
          year-old vineyard in Hungary costs less than $40,000. 
          And an acre of farm land in Costa Rica can cost as
          little as $110. 
               Belize may be an unlikely choice for anyone
          interested in becoming a farmer.  But it offers a
          climate that is well-suited to agricultural
          enterprises.  And Belize farm land, among the least
          expensive in the world, goes for about $200 per acre. 
               The best buys in Chile are cattle ranches. 
          Villarrica is a 48-hectare ranch near the Lake of
          Villarrica selling for $42,650.  Also on the market is
          a ranch called Temuco, which includes 125 hectares and
          a house in good condition, all for $79,412.  For more
          information on cattle ranches in Chile, contact
          Tattersall Propiedades, Isidora Goyenechea 3162,
          Santiago, Chile; tel. (56-2)233-3243. 
               Costa Rica offers one of the world's best deals in
          farm and ranch land.  About 43 miles east of San Jose
          is a 2,514-acre ranch with a river at one end and the
          main highway on the other.  The property includes
          houses, farm buildings, and corrals, and there is
          connected electricity.  The price is $278,000 -- about
          $110 per acre.  For more information on Costa Rican
          properties, contact Robert A. Wasson, American Realty,
          SA, Apdo. 2310, 1000 San Jose, Costa Rica; tel.
          (506)230-328.  A good starting point is a report, Costa
          Rica: A Tax & Retirement Haven for Americans, available
          for $13 postpaid from Eden Press, P. O. Box 8410,
          Fountain Valley CA 92728, or request their free
          catalog.  The focus of the Eden report is more economic
          than lifestyle, which of course is a total delight in
          Costa Rica.  
          
          Profiting from perestroika as an entrepreneur
          
               Despite the chaos and turmoil in the former Soviet
          Union, the tide of market-oriented reforms can neither
          be arrested nor reversed.  Expectations of a better
          life, once kindled, cannot be easily extinguished. 
               For courageous entrepreneurs, the opportunities in
          former Communist countries are as immense as the
          countries themselves.  But so are the difficulties. 
               Because of years of state-controlled prices,
          nobody knows what anything really costs.  In many
          cases, that leads to incredible bargains.  In Riga, for
          example, two diners can enjoy a five-course meal (with
          champagne and dessert) in a first-class restaurant for
          500 rubles (tip included). 
               Among the hundreds of people willing to change
          money on the street, a dollar is good for up to 400 to
          450 rubles.  So at the black-market rate, that first-
          class meal cost about $1 per person. 
               Other incredible bargains abound.  For example,
          there are beautiful properties along the Baltic coast. 
               In a country where private property is a brand-new
          concept, the transfer of the use of a beach house from
          one party to another involves a transaction of surreal
          and Byzantine complexity.  Nonetheless, such
          transactions do occur.  And, as far as we can discern,
          these transactions take place at ruble equivalent
          prices between $7,500 and $20,000 -- assuming, of
          course, the black-market exchange rate.
               Look at the Baltic coast on a map.  To the north
          is Finland and to the southwest, Germany -- both of
          which boast some of the most expensive real estate in
          Europe.  Once private property is established and
          markets are open to the world, today's $7,500 beach
          house could easily be worth $750,000.  That doesn't
          include your ability to rent it each season for up to
          $5,000. 
               To have a shot at this 100:1 profit opportunity,
          however, you will need a local partner to execute the
          transaction.  He will also have to thread his way
          through the formidable and often conflicting rules and
          regulations.  Once the transaction is successful, he
          will have to arrange for maintenance and repair -- no
          mean feat in a country where hardware stores do not
          exist and, until recently, repairmen all worked for
          some state bureaucracy. 
               Because of the low purchase price, such property
          would bring an enormous return on equity if you rented
          it to foreign visitors.  For example, you could
          advertise in Western Europe, and accept payments and
          make bookings from an office in North America. 
               In this way, you would earn hard-currency profits,
          while most of your expenses would be in soft-currency,
          and depreciating, rubles.  For an international
          entrepreneur, this is the best of all possible worlds. 
          Travel to Russia and the Baltics is rapidly on the
          rise.  Since the collapse of the Communist party,
          tourism has really taken off.  You can cash in on the
          profits -- while helping the Baltics achieve economic
          prosperity.
               And even if you never get a chance to realize that
          100:1 profit, you would still have a year-round
          vacation home at a fraction of the cost of a time-share
          apartment anywhere in the world.
               If you have children, you can easily spend more
          than $7,500 on a single European family vacation.  With
          such a property, you could spend summers on the Baltic
          almost free -- and for as many years as you like.
               And you may achieve a degree of international
          attention, because you'd likely be one of the first
          Americans to pull this off.
          
          A tale of three cities: St. Petersburg, Kiev, and
          Rostov-on-Don
          
               A recent Russian decree allowed Russian citizens
          the right to own and buy real estate.  The decree
          allows tenants to buy up the freehold of the apartments
          they inhabit. 
               Initially it was planned that people pay a price
          reflecting the value of the property.  However, in the
          absence of an established real estate market, the
          assessment of values became problematic. 
               Under the present arrangement, the government
          charges 20% of the discounted material, labor, and
          construction costs of a home or apartment.  The
          situation, however, remains complicated and very
          confused.  And we think that the establishment of a
          real estate market that helps to regulate values and
          prices will take years. 
               Nonetheless, real estate advertisements are now
          appearing in the New York-based Russian-language daily
          Novoe Russkoe Slovo. 
               For example, a recent issue contained ads for
          condominiums for sale in different republics of the
          former Soviet Union.  One is a three-bedroom apartment
          in St. Petersburg.  The building boasts luxuries such
          as an elevator and a common garden.  Formerly the
          property of a cooperative, the asking price is $7,000. 
               For $3,000 you can become the owner of a two-room
          apartment with kitchen and bath.  It is located in
          central Kiev.  Given that it is such a bargain, you
          probably won't mind the walk up to the fourth floor. 
               If this price is still too high, try the studio
          apartment with kitchen and bath currently advertised in
          Rostov-on-Don.  It goes for $1,500. 
               There is a catch.  The owners advertising these
          apartments are Russians who intend to emigrate to the
          United States.  And while the individual republics are
          establishing independent legal and economic systems, a
          wave of protective localism and nationalism permeates
          the reform process. 
               Local rules in St. Petersburg, for example, a city
          well-known for its particularly anti-Communist
          administration, prohibit the sale of property to non-
          St. Petersburg residents.  This means that not even a
          Muscovite Russian is allowed to purchase property. 
          Kiev and Rostov are more liberal, although the
          properties can only be sold to Ukrainian or Russian
          citizens, respectively. 
               Furthermore, no financing is available.  But with
          prices as low as $1,500, there seems to be hardly any
          need for it.  And it's possible that, once private
          property is established, apartments in premium
          neighborhoods could appreciate as much as 1,000%.  That
          means you could have real estate worth as much as
          $250,000 or more from a nominal investment. 
               For a subscription to Novoe Russkoe Slovo, contact
          the paper at 518 Eighth Ave., New York, NY 10018;
          (212)564-8544 or (212)564-8545.
          
          
          How to double your money in Hungarian property
          
               Tired of hearing about the dismal real estate
          market in North America? If so, you will be glad to
          know that in many other countries, the market for
          property is rising.  Indeed, the Hungarian real estate
          market is not only up but has all the markings of a
          good old-fashioned boom. 
               Unlike other East European countries, where the
          economy is falling apart, Hungary is already well on
          its way to making the transition to a capitalist
          economy. 
               No longer a matter of conjecture, the free market
          in Hungarian real estate is well-established -- and new
          participants are joining each day. 
               Prices, while no longer dirt cheap, remain
          considerably below those in neighboring Austria. 
               What's more, prices will no doubt rise to near
          Austrian levels some time within the next five years. 
          This makes Hungarian real estate one of the lowest-risk
          speculations anywhere in Eastern Europe. 
               In fact, the procedure for buying Hungarian real
          estate has become so simple that once you find a
          property, actually purchasing it has become a matter of
          routine paperwork. 
               Since October 1990, foreigners have been permitted
          to own 100% of Hungarian companies, which in turn can
          own real estate, both commercial and residential. 
               Though they are still formally called joint
          ventures, such companies need have nothing joint about
          them.  Furthermore, setting up one has become a simple,
          painless proposition. 
               Income from rental property may be freely
          repatriated along with capital gains whenever you
          decide to sell.  With ownership this easy, it is really
          not surprising that the market has begun to heat up. 
          With both prices and liquidity steadily rising, a
          number of brokers have already set up shop. 
               One, Buda Haz Interproperty BT, 63 Carlton Hill,
          London NW8 OEN, England; tel. (44-71)624-0869; fax
          (44-71)372-2397, for example, has been in business
          since August 1990. 
               The firm handles the full gamut of real estate
          transactions in Hungary and maintains listings on a
          variety of properties.  Prices are usually quoted in
          pounds sterling. 
               With a separate office in Budapest (IV. Xziv u.50,
          Budapest 1063, Hungary; tel (36-1)147-5776), it serves
          clients both in Budapest and abroad.  Indeed, a fairly
          large support network for Westerners interested in
          investing in Hungary has begun to develop in the
          capital. 
               And as more Western companies have made Budapest
          the headquarters of their Hungarian and East European
          operations, arriving executives have spurred on the
          already robust demand for housing. 
               These new arrivals serve not only as potential
          buyers for flats and houses, but also as renters for
          properties owned by other Westerners. 
               This makes Budapest, with its notorious shortage
          of housing, even more of a sellers' market.  Indeed,
          Buda Haz predicts hard currency prices will double in
          five years. 
               Of course, real estate companies have a vested
          interest in forecasting higher prices -- no matter what
          country they're in.  In the case of Hungary, however,
          we regard Buda's predictions as only mildly over-
          optimistic. 
               Another attractive aspect of the Hungarian real
          estate market is that Western anti-capitalist notions,
          such as rent control, have not shown signs of catching
          on in the formerly socialist East.
               As of this writing, Buda Haz has on its books a
          number of promising listings in all price ranges.  Do
          you hunger for some peace and quiet, and moreover,
          enjoy good wine? 
               How about a three-level house with a mansard roof
          in the Tokaj foothills -- not far from the source of
          the famous Tokaj wine? Best of all, the asking price is
          only the pound sterling equivalent of $28,000. 
               Perhaps you'd prefer to be in Budapest.  How about
          a 1,200-square-foot apartment in the heart of
          Budapest's prime ninth district, very close to the city
          center? This is a place to live in, or to rent. 
               Complete with central heating and a telephone
          (difficult to find in Hungary) and located in a turn-
          of-the-century building, the apartment has an asking
          price that is the equivalent of about $90,000. 
               Most of the flats and houses currently available
          belong to Hungarians who purchased them from local
          municipal authorities.  Larger estates -- including
          some castles -- may also come on the market. 
               Here, however, you may have to negotiate directly
          with the state.  And when dealing with a foreign
          bureaucracy, you'll find that a realtor can be of
          invaluable assistance. 
               For example, Buda Haz is currently negotiating
          with the local authorities on behalf of a client for a
          small castle about 100 kilometers south of Budapest
          along the Danube, not far from the airport.  What's
          more, the price is only $90,000 -- well under the
          median price of a home in North America. 
               If you're looking for development projects, you
          may want to consider buying a larger, hotel-sized
          castle or sporting estate.  Here, the government's
          preference has been to structure a joint venture
          whereby it retains an interest in the property --
          which, typically, it would like to see developed. 
               Often, such deals will stipulate the purchase
          price as well as the money necessary to develop the
          property.  The former becomes the government's equity
          stake, the latter the stake of the foreign investor. 
               To reduce the purchase price in forints, some
          investors engage in the common, though officially
          frowned-upon practice of coupling the official
          transaction in forints with an unofficial one in hard
          currency taking place abroad. 
               By reducing the official purchase price this way,
          however, an investor incurs greater tax liability upon
          sale.  Of course, by repeating the same thing at sale
          time, that investor could reduce tax liability
          accordingly. 
               Similarly, many rentals, particularly those to
          Westerners, are conducted in hard-currency terms.  It
          is actually legal to charge rent in hard currency when
          letting to a foreign entity, such as an agent located
          in London. 
               If you want hard-currency income from local
          residents, one common arrangement is simply to make an
          off-the-books cash deal with your tenant. 
               As you would in any real estate market, make sure
          that the title to any property you buy is clear and
          uncontested. 
               In the case of smaller properties bought from
          Hungarians who previously purchased the properties from
          the state, title is easy to establish. 
               With larger properties, greater uncertainties may
          arise, as prerevolutionary owners may yet come forth to
          claim their former property. 
               A second caveat is the chance of a currency
          devaluation in the future.  However, such an event
          would have little effect on real estate values as
          measured in hard-currency terms. 
               One final difficulty with investing in Hungary is
          that, because of the country's high rate of inflation,
          mortgages bear extremely high rates of interest.  Thus,
          most investors have secured their financing abroad. 
               All told, while some caveats exist, investing in
          Hungarian real estate is probably one of the best ways
          to participate in the rebirth of Eastern Europe -- and
          a potentially highly profitable one as well. 
               While the idea of owning property in Hungary,
          Latvia, Ukraine, or Russia may seem pretty far-fetched,
          we have discussed the possibilities here for two
          reasons. 
               First, purchasing property in the former East bloc
          represents a good illustration of the need to think
          more broadly and a bit unconventionally to find the
          best profit possibilities.  You will never get rich by
          doing what everyone else is doing.  Few people,
          relatively speaking, do get rich.  Thus, in order for
          you to get rich, you must be one of the few, not one of
          the many.      There is no guarantee that buying
          property in Minsk or Kiev will make you rich.  But by
          so doing, at least you are beginning to think (and act)
          in a way that could make you rich. 
               Second, property in these troubled and confused
          areas of the world is priced so cheaply that you could
          get it free.  Just look at the numbers.  Let's say you
          buy an apartment in St. Petersburg for $20,000, using a
          home equity line on your existing home as a source of
          financing...at 10% interest.  The interest is
          deductible, so the out-of-pocket expense of the money
          is only about 6%...or about $100 per month.  For all
          the turmoil, St. Petersburg is still one of the great
          cities of the world.  It was the home of the Czars and
          is the site of the Winter Palace and the incredible art
          collection at the Hermitage.  There are a lot of
          Americans (and others) who want to visit St. Petersburg
          for business or pleasure.  And they don't have a lot of
          choices about where to stay.  It would be a fairly easy
          matter...especially with the right partner...to fix up
          your new apartment to an appropriate level and rent it
          out to these visitors.  You might be able to charge as
          much as $2,000 per month -- which would still be a big
          savings compared with staying a month in a local hotel. 
          Thus, if you rented your place for just the four months
          of summer, you'd gross enough to pay the mortgage for
          nearly six years! Or to look at it another way, you'd
          be earning an annual gross yield of about 40% on your
          investment.  And you'd still have the use of the
          apartment for eight months of the year...not to mention
          the capital appreciation.
          
          
          How to get a free home in the South of France...or
          almost anywhere else you want to go
          
               The secret of this angle is arbitraging the
          difference between local and international rental
          rates.  Today, thousands of Americans travel overseas
          for weeks, months, even years.  Likewise, thousands of
          foreigners -- Dutch, Swedish, English, Chinese, and
          Indian -- travel too. 
               Typically, overseas business and vacation
          travelers pay much higher rental prices than locals. 
          You have only to contact an agency to find the truth of
          this. 
               In the South of France, for example, an especially
          attractive spot for visitors, it can cost a lot of
          money to rent a cottage.  But as a friend of ours
          discovered recently, not much of that money ends up in
          the hands of the landlord.  Our friend paid $4,000 to
          rent a cottage.  While there, he made friends with the
          landlord, a British man who lived in the chateau
          nearby.  The landlord only received $1,500 of the rent
          our friend paid.  The rest went to middle men. 
               Cottages in that region of France sell for about
          $100,000.  So, here's the obvious angle.  Buy the
          cottage and use your American connections to rent it
          out.  The local French landowner doesn't know how to
          reach American renters.  Usually, he can't even speak
          English.  You have a terrific advantage.  All you have
          to do is to run ads in specialized travel
          magazines...in your local newspaper...or in
          international travel and lifestyle publications. 
               Here is how the numbers work.  You pay $100,000
          for the cottage.  Just to keep it simple, borrow the
          money from your local bank...maybe using a home equity
          line on your U.S. dwelling.  You might have to pay
          about $12,000 a year to pay off that loan.  But look,
          if you can rent the cottage for just three months of
          the year at $4,000 per month -- you've done it.  You've
          got the cottage free.  Plus, you have free use of it
          nine months of the year. 
               Or perhaps you could rent it for another couple of
          months and make a profit of $8,000.  Or maybe you'd
          rather lower the rent to get a more steady tenant...and
          be content to acquire the property FREE over the period
          of the mortgage. 
               We have used the example of a cottage in France. 
          But it could be almost anywhere you'd want to go. 
          Because if you would like to travel somewhere, chances
          are, others would, too.  The only hitch is that the
          place must have a two-tiered rental market that you can
          take advantage of.  In top, prime resort areas, the
          local rental rates and the international rental rates
          tend to run together. 
               In that case, you'll be lucky to get enough in
          rentals to cover the mortgage.  But in many, many
          places...you will be doing your fellow Americans a big
          service by letting them rent your overseas property at
          two to three times the going local rate. 
          
          
          Mexico: A major boom is in progress
          
               If the forces of migration and demography create
          pockets of real estate opportunity in the United States
          -- where property prices are in an overall decline --
          imagine what they can do in other countries where the
          overall economic outlook is far more favorable.  One of
          the areas of the world where this is the case is Latin
          America.
               Mexico has been called the South Korea of Latin
          America.  President Salinas' free-market reforms have
          transformed the country from an economist's nightmare
          into an economic powerhouse within a matter of years.
               As a result of deregulation, privatization, and
          tax-rate reduction, Mexican inflation and interest
          rates have been falling steadily. 
               The favorable economic climate and the pioneer
          spirit of the new Mexico have attracted foreign
          investors like never before.  In 1991 alone, Mexico
          enjoyed a foreign capital inflow of more than US$15
          billion.
               For real estate investors, Mexico not only offers
          an unspoiled environment with thousands of miles of
          beautiful beaches and tropical vegetation but also
          boasts a cost of living that is substantially below
          that of any Western industrialized country.
               Many Mexicans who have been living in the U.S. for
          decades are now investing their money in Mexican
          properties and businesses.  Investors also are moving
          to Mexico, anticipating a real estate boom of epic
          proportions.  This boom will be fueled by two
          demographic developments.  
               One involves new internal patterns of migration. 
          The majority of Mexico's middle class lost most of
          their wealth during the early 1980s.  This means that
          today the workplace and the availability of work is the
          determining factor of where a family will live or move.
               Mexico's industry is still concentrated in densely
          populated (and notoriously polluted) metropolitan
          areas, such as Mexico City.  However, President
          Salinas' policy of economic decentralization and the
          electronic revolution in the workplace are powerful
          arguments for a new demographic trend whose force has
          only begun to appear.
               In the next 10 to 15 years, a migrational pattern
          will unfold that will be very much like the U.S.
          migration from the cities into the suburbs in the 1950s
          and 1960s. 
               Young, prosperous Mexicans (like North America's
          so-called yuppies) who are now employed in the cities,
          will increasingly move to the surrounding rural areas.
               This movement will follow the large traffic
          arteries, such as the new highways currently being
          constructed.  An example of this trend will be the new
          route between Mexico City and Acapulco.
               Centers of suburban development will include areas
          around Monterrey, Nuevo Leon, particularly in scenic
          Cividad Mt. Aleman.  Cities in the vicinity of Mexico
          City, such as Puebla, Jalapa, or  Veracruz, will also
          become focal points of the new trend.
               Additional demand for Mexican real estate will
          come from north of the border, as prosperous members of
          the U.S. baby boom generation reach retirement age. 
               But not only foreign retirees will drive up
          property values in scenic Mexico.  Increasingly,
          professionals will take advantage of the "electronic
          commute" option.  This implies relocating to a low-
          cost, semirural environment while connecting to a
          remote office through modems, interactive television
          environments, and computers.
               Westerners will head for unspoiled regions in Baja
          California, where they will increasingly encounter
          young Mexicans engaged in trade and commerce along the
          California border.  Particularly La Paz, currently a
          small town of 20,000, will attract Mexican yuppies and
          retiring boomers alike.  The town has all the trappings
          of a coming property magnet, including an excellent
          hospital, a university, and unlimited access to the
          maritime paradise of the Sea of Cortez.
               Other ideal locations will be in the state of
          Jalisco, near Lake Chapala, the country's largest lake. 
          Guadalajara and Ajijic in particular will attract sun-
          hungry Americans with a taste for rural living with
          quick access to modern amenities and entertainment.  On
          the Mexican High Plateau, San Miguel de Allende
          provides a haven for seekers of arts and culture.
               Article 27 of the 1917 Mexican Constitution
          decrees that no foreigner may be registered as the
          owner of real estate within the "forbidden zone."  This
          zone consists of a 30-mile-wide strip of land along the
          Mexican coastlines and 50 miles along the U.S. and
          Guatemala/Belize borders.  Unfortunately, it includes
          the favorite beach cities of North American and
          European holiday takers, such as Puerto Vallerta,
          Ixtapa, Acapulco, Cancun, and the entire Baja
          Peninsula.
               From 1917 to 1972, the only way to hold property
          in this zone was to put it in the name of a Mexican
          citizen.  This was risky business, as the gringo
          investor was dependent entirely on the good will and
          honesty of his Mexican business partner -- who could
          take over the property legally at any time and kick his
          ex- partner out of the country.
               But U.S. tourist dollars soon became too important
          for the Mexican economy.  Mexico no longer could afford
          scaring off potential real estate investors and
          retirees by the prospects of fraud and legal hassles. 
          In 1972, The Ley de Fideicomiso, or Trust Law, was
          established.  The title to the land could now be held
          by a Mexican bank for a foreign buyer who was then
          named beneficiary under the trust.
               Under this trust agreement, the beneficiary has
          full control of the property for 30 years.  Subject
          only to local zoning laws, the foreign owner can build
          on his property, modify it, and develop it.  Commercial
          use includes subdividing, renting, leasing, and even
          selling at any time.  This situation is nearly as good
          as having direct ownership.
               To find out more about your own Mexican real
          estate option, contact Mrs. Linda Neil, c/o
          International Real Estate, The Settlement Company, 3451
          Greer Road, Palo Alto, CA 94303 USA; tel. (415) 857-
          9259; fax (415) 852-9649, or Zaragoza y Guerrero, San
          Jose del Cabo, BCS Mexico 23400; tel. (52-684) 22006;
          fax (52-684) 22016.
               Mrs. Neil's firm can help you locate a suitable
          property and handles services such as closing, title
          searches, tax payments, permits, prorations, and
          authorizations, as well as supervision of registrations
          and recordings.
               The company also has access to a new on-line
          multiple listings database of more than 400 individual
          properties.  It takes care of applications for master
          trusts and permits, as well as marketing studies and
          programs.
               A variety of business opportunities are also
          available in Mexico, and Mexican law has recently been
          changed to allow foreign franchises to open.  A number
          of major shopping malls are under construction, so this
          type of retailing is expected to boom.  Tourism-related
          franchises, in such fields as hotels and car rentals
          are particularly likely to succeed, since this will be
          the first time that names with world recognition can be
          used in Mexico.  A good starting point for information
          on business opportunities and franchising in Mexico is
          The Mexican Opportunities Report, available for $18
          postpaid from Eden Press, P. O. Box 8410, Fountain
          Valley CA 92728, or request their free catalog.  The
          report covers the nature of the Mexican market, foreign
          investment regulations, tourism, franchise
          opportunities, the maquiladora program, and specifics
          about NAFTA.
          
          
          Boomtown abandon: cashing in on China's hothouse
          property market
          
               In most places around the world -- North America,
          Europe, Australia and Japan, for example -- property
          prices are either falling or barely holding stable. 
          But in the special economic zones of Southern China,
          real estate prices have more than doubled in the last
          year.
               In a moment, we'll show you how to get in on some
          of the action.  But first, let's examine two of the
          forces driving Chinese property prices through the
          roof.
               First among them are some of the highest economic
          growth rates in the world.  Along the Pearl River
          delta, roughly the region between the river town of
          Guangzhou (formerly Canton) and Hong Kong, economic
          growth has hit double digits for more than a dozen
          years.
               According to recent figures, Chinese industrial
          production is expanding at an annual rate of nearly
          18%.  Trade is growing 40% a year.  Nowhere in the
          world is new wealth being created at a faster pace.
               Moreover, the Chinese save their money.  This
          means that Chinese growth is sustainable in a way that
          some of the world's other fast-growing economies --
          which save little and depend on capital borrowed from
          abroad -- is not.
               In China the average savings rate is a phenomenal
          36% of gross domestic product.  That's more than enough
          to continue to finance a high level of investment --
          provided that capital markets continue to evolve at a
          sufficient pace.
               In the world's most populous country, there has
          always been a strong latent demand for housing.  But
          until parts of the Chinese economy were opened up to
          capitalism, no one had the money to pay for it.  That
          is no longer the case today.
               Another source of housing demand comes from Hong
          Kong.  This is especially the case in Shenzhen, the
          special economic zone adjacent to the Crown colony.
               The reason demand from Hong Kong is spilling over
          into China in a big way is that Hong Kong real estate
          prices have climbed to unaffordable -- and perhaps
          unsustainable -- heights.  According to an
          affordability index devised by one local bank, at
          current prices, housing costs consume as much as 75% of
          the average family income.
               Because of the fixed link between the U.S. dollar
          and the HK dollar, Hong Kong interest rates were forced
          to match the decline in US rates from 1989 to 1992. 
          But unlike the United States, where inflation has also
          fallen, Hong Kong's inflation rate is still in double
          digits.
               As a result, anybody who keeps money in the bank
          is actually losing 8% to 10% a year in real terms.  In
          order to keep ahead of inflation, everybody puts money
          into shares and property instead.
               Property prices in Shenzhen, which are still only
          a third to a half of Hong Kong levels, look like
          incredible bargains to investors from places like Hong
          Kong or Taiwan.  Not surprisingly, about 70% of the
          property transactions recorded in Southern China
          involve foreign buyers.
               So what's the best way for a foreigner to profit
          from the Chinese real estate boom? One way is simply to
          buy an apartment  from one of dozens of real estate
          developers now building projects in China.
               For example, Hong Kong-based New World Development
          Ltd. has contracts to develop 40 to 50 million square
          feet of real estate in Guangdong Province (which
          encompasses Guangzhou, Shenzhen and the Pearl River
          Delta).  Many of these residential units will be
          presold to buyers willing to put down between 10% and
          20% of the final price long before the project is even
          finished.
               But unless you are fluent in Cantonese and have
          good family or business connections inside China,
          buying a flat outright is likely to be very daunting.
               One common pitfall stems from that fact that most
          Chinese real estate is divided into three types: one
          which may be sold to foreigners, one only to locals and
          one to either.  Unfortunately, the class to which a
          specific property belongs is often difficult to 
          determine.  And an investor who buys the wrong class by
          mistake will wind up with no property and no refund.
               Another potential pitfall is an uncertain legal
          climate.  Although the government still owns all land,
          the Chinese constitution was recently altered to
          provide a legal basis for the trading of long-term (up
          to 50 years or more) leases.  All the regulatory and
          enforcement details, however, are left to the whim of
          local governments.
               Having a strong personal relationship with local
          officials is at least as important as anything written
          in the Chinese constitution.  With local officials on
          your side, virtually anything can be negotiated -- even
          relief from the prohibitive capital-gains taxes on
          profits from the sale of property.  Without their help,
          almost nothing is possible.
               Further complicating this situation is the
          possibility that a local official who is on your side
          today may not be tomorrow -- particularly if someone
          else has offered him a better deal in the meantime.
               But if you don't have the time, resources,
          Chinese-language skills and the necessary connections
          for direct real estate investment, don't despair.  It
          can be pretty easy to hitch a ride on the back of
          someone who has what you lack.
               The best way to do this is to buy shares in
          experienced property development companies with large
          commitments inside China.  Of these, our favorites are
          New World Development and Hopewell Holdings.
               New World Development's projects presently include
          two residential complexes in Guangzhou, a residential
          and commercial complex in Huizhou, and a golf-course
          and residential complex in Foshan.  In addition, the
          company has a share of such infrastructure-related
          projects as the Northern Ring highway around Guangzhou
          and a Guangdong power plant.  To request a copy of the
          firm's annual report, contact New World Development,
          30th floor, New World Tower, 18 Queen's Road, Central,
          Hong Kong.
               New World Development is listed on the Hong Kong
          stock exchange.  It also trades in North America in ADR
          form (NDWX-OTC, Cusip=649274206).  One ADR is equal to
          five ordinary shares.
               Hopewell Holdings' projects inside China also
          include both property and infrastructure development. 
          Among them are Guangzhou's China Hotel Complex, the
          Shajiao 'B' and 'C' Power Stations in Guangdong, and
          the Guangzhou-Shenzhen-Zhuhai (GSZ) Superhighway.
               One section of the highway due to open in 1993
          will cut the  travel time between Hong Kong and
          Guangzhou to 90 minutes from five and a half hours. 
          Hopewell will also develop 10 million square feet of
          residential housing along the highway interchanges.
               In the planning stages are a 33-kilometer bridge-
          tunnel project (modeled on North America's Chesapeake
          Bay Bridge) across the mouth of the Pear River, and a
          105-km elevated rail system linking Guangzhou and the
          Portuguese enclave of Macau.  The space underneath the
          railroad will be used for commercial development.  To
          request a copy of its most recent annual report, send a
          letter of request to Hopewell Holdings, 64th floor,
          Hopewell Centre, 183 Queen's Road East, Hong Kong.
               Hopewell trades on the Hong Kong stock exchange. 
          But like New World Development, it also trades in North
          America in ADR form (HOWHY-OTC, Cusip=439555202).  One
          ADR is equal to five ordinary shares.
               Real estate may be in the doldrums in most of the
          developed world, but not in China, where prices are
          climbing with boomtown abandon.  So stake your claim on
          a piece of the property fortunes of the Wild East.
               Buy some shares in Hopewell and New World
          Development and watch your gains compound for the next
          10 to 20 years.  For even greater gains, you might try
          to time your purchase to coincide with one of the
          inevitable periods of stock market weakness that
          inevitably accompany the runup to the Chinese take-over
          of Hong Kong in mid-1997.
          
          
          Chile: Sitting pretty at the foot of the Andes
          
               Mexico scarcely offers the only promising real
          estate market in Latin America.  Other countries do as
          well.  And that is mostly a result of the continent's
          dramatic abandonment of government run economies in
          favor of more market-oriented policies. 
               After decades of lunatic leftist economic
          policies, Latin America has been privatizing
          inefficient state-owned companies, opening up markets
          to foreign investment and competition, and cutting
          taxes.  In the past several years, a dozen Latin
          American candidates have won elections promising to do
          what should have been done years ago -- adopt market-
          oriented economic policies.
               Latin America is also blessed with an abundance of
          natural resources, a developed economic infrastructure,
          and long traditions in trade and commerce. 
          Nationalization of foreign holdings -- once the bane of
          foreign investors -- is virtually a thing of the past.
               One way to get in on the ground floor of the
          coming South American boom, therefore, is to invest in
          real estate. Ironically, this turn toward freer markets
          began in Chile under the repressive General Pinochet.
               Since then, privatization of industry and
          encouragement of foreign investment have made Chile the
          polished jewel of the South American continent. 
          Because of dramatic economic growth, bargain properties
          in Chile are disappearing fast.  In some parts of the
          country, prices have doubled or even tripled since
          1986.  But there are also a lot of good buys left.  And
          if you move quickly, there is still time to get in on
          the next boom in Chilean real estate.
               Chile is arguably Latin America's most beautiful
          country, spanning over 2,600 miles of the Pacific
          coast.  But at its widest point, it is only 265 miles
          across.  This narrow strip of land comprises five
          distinct geographic regions, including the spectacular
          Andes Mountains, the longest mountain range in the
          world.
               To the north, the Atacama desert covers one-third
          of the country.  It is considered one of the most arid
          places on earth, but is extremely rich in minerals,
          especially copper, Chile's main export.
               Central Chile boasts green valleys full of fruits
          and flowers, grain, peaches, tropical fruit, and
          avocados.  This is also the home of Chile's famous
          vineyards.  Farther south is the Lake District, a
          1,000-mile region of beautiful, unspoiled scenery,
          resorts, forests, sparkling rivers and streams,
          waterfalls, volcanos, and sea-green lakes.
               The southern tip of Chile, the archipelago region,
          includes the famous Cape Horn.  Overall, Chile's
          climate remains consistently mild, with summer
          (December to March) temperatures ranging from 50 F.-86
          F. and the temperature in the  rainy season averaging
          53 F.
               Chile boasts Latin America's fourth largest rail
          network, having connections with Bolivia and Argentina. 
          The Pan American Highway links 75% of the country and
          airports and seaports have access to most of the
          world's transport lines.  Both telephone and postal
          communications are expansive and efficient.
               In 1973, Gen. Augusto Pinochet Urgarte's military
          coup d'etat established a dictatorship that lasted
          until 1988.  Chile returned to its tradition of
          democratic government in 1989, and, in 1990, elected
          Christian Democrat Patricio Aylwin Azocar as its
          president.
               Since the new civilian government's political
          interests depend on maintaining the health of the
          Chilean economy, the outlook for the nation's business
          climate is very positive.  Recent developments in
          economic policy strongly encourage free enterprise and
          a market open to international investors.
               Chile has always offered an economic environment
          favorable to foreign investors and relatively free of
          bureaucratic restrictions.  The privatization of
          industry and free market policies were designed by
          experts from the University of Chicago and remain
          integral parts of Chilean economics.
               There are no restrictions on foreign ownership of
          property or industry except for those placed on
          residents of neighboring countries, who may not own
          land along Chile's borders.  Otherwise, Chile has the
          most open market in South America, perhaps one of the
          most open in the world.
               These policies have generated notable foreign
          investment.  The unemployment rate has steadily
          decreased in the last three years and is currently
          6.7%.  In turn, the quality of life in Chile is high.
               Santiago is the urban center of Chile.  It sits
          near the foot of the Andes Mountains, only 90 miles
          from the Pacific coast.  Once a colonial Spanish town,
          it still displays an Old World grandeur, combined with
          the conveniences of a modern metropolis.
               Prices in Santiago and its suburbs are comparable
          to some cities in the United States.  But unlike their
          North American counterparts, Chilean cities still seem
          to be at the bottom of a property boom.
               We have previously observed how the aging of the
          post-World War II generation portends falling demand
          for housing for North America -- as well as much of the
          English-speaking world.  In Chile, however, those same
          demographic statistics point in the opposite direction.
               For example, of the 12.5 million Chileans, half
          are under 25 years of age.  Among those over 15 years
          of age, 92.5% are literate, many educated at one of
          Chile's eight state universities.
               A large, educated, and highly motivated young
          population translates into a large demand for quality
          housing 10 to 20 years from now.  As a result, a
          dramatic expansion of Chile's urban and industrial
          centers lies ahead, boosting property prices. 
          Additional demand will come from foreigners, eager to
          participate in the Chilean investment boom.
               While urban Chilean real estate has already risen
          considerably in price, the real bargains are outside
          the country's capital.  Good buys are farmland and
          properties in resort areas such as Vina Del Mar and
          Arica.
               Like most investment opportunities in Chile, there
          are no  special restrictions regarding the purchase of
          real estate.  If you find a property you are interested
          in, simply contact the owner or the handling agency.
               However, we recommend thoroughly investigating the
          property claims and titles prior to purchase. 
          Financing is available in Chile, typically in the form
          of a 20-year mortgage at a real (inflation-adjusted)
          interest rate of 8.5%.  Usually, a 25% initial deposit
          is required.
               For general information regarding foreign
          investment in Chile, you can contact the office of the
          Secretary of Foreign Investment, Teatinas 120, 10th
          Floor, Santiago, Chile; tel. (56- 2)698-4254.  For more
          information on properties available in Chile, contact
          Mr. Fernando Vargas, c/o Tattersall Propiedades,
          Isidora Goyenenchea 3162, Santiago, Chile; tel. (56-
          2)233-3243, or Mr. Klaus Lettecke, c/o Hobbins
          Propiedades Ltda., Luz 2926, Santiago, Chile; tel. (56-
          2)232-1030.
          
          
          Uruguay: The Switzerland of South America
          
               Wedged between Brazil and Argentina on the
          Atlantic coast, Uruguay has traditionally been regarded
          as the Switzerland of South America.  Only living
          expenses in Uruguay are much cheaper than in
          Switzerland, you pay no income and little property
          taxes, and it is much easier for a foreigner to buy and
          own property in Uruguay.  (In Switzerland, foreigners
          are permitted to purchase property only in government-
          designated areas.)
               Uruguay is one of the few countries in the world
          where an investor still can make money on rental
          property.  Resort houses and apartments rent for
          astronomical fees during peak season.  Theoretically,
          you can make enough during the first three months of
          the year to pay for your mortgage and maintenance costs
          for an entire year.  And you are almost guaranteed
          appreciation on the value of the property.
               Uruguay is also an attractive destination for
          anyone looking to retire abroad.  The climate is
          tropical and ideal for farming or breeding cattle.  The
          beaches along the Costa del Oro (which extends from the
          country's capital, Montevideo, to Punta del Este, a
          major seaside resort on the Rio de la Plata) are
          beautiful.
               Real estate prices in Uruguay -- particularly in
          Punta del Este, Colonia, and other resort areas --  are
          driven by heavy investment from Argentine investors,
          who use Uruguay as a haven to protect their capital
          from inflation and economic fluctuations at home.
               Condominium developments in Montevideo often have
          a much better investment potential than houses.  Prices
          range from US$35,000 for a furnished 1-1/2 bedroom
          apartment at a Punta apartment complex to US$120,000
          for a luxurious three-bedroom apartment condo
          overlooking the ocean and the Rio de la Plata. 
          Farmland can be a bargain for as little as US$200 an
          acre.  Rentals in the prime residential areas of town
          run between US$500 and US$600 a week.
               In addition, purchasing property involves
          surprisingly little red tape.  For example, there are
          no residency requirements and no foreign exchange
          taxes.  It involves few fees, and it is not necessary
          to hire an attorney or open a bank account at a
          Uruguayan bank.  All your transactions can be executed
          in U.S. dollars.  (One source told us you can even make
          your down payment  with your credit card!)
               To locate a suitable piece of property, you should
          work through one of the local real estate agents. 
          Although many of them speak English, be prepared to
          negotiate in Spanish.
                Unfortunately, financing is nearly unheard of in
          Uruguay.  You normally have to pay in cash -- a few
          places, however, are beginning to offer limited
          financing to attract foreign investors.
               One apartment complex in Punta del Este, for
          example, is offering three-year financing at 12% with a
          30% down payment.  You are penalized for this, however. 
          The cash price for a one-bedroom apartment is
          US$48,000; if you finance the purchase, the price is
          US$55,000.
               For more information on purchasing property in
          Uruguay, you should brush up on your Spanish and
          contact a Uruguayan real estate agent, such as Rodolfo
          Estevez Altieri, Av. Roosevelt 203, Rutaq 1, Colonia
          del Sacramento, Uruguay; tel(6598-522)2335; fax: (598-
          522)3133; Arteaga Hill, Rinco'n 675 Montevideo,
          Uruguay; tel. (598-2)959822; Sebastian Erviti, Av.
          Artigas entre 26 y, Atlantida, Uruguay; tel. (589-
          372)5753; or Leonardo Blois Roig, c/o Immobilaria
          Pinocho, Rambla y Sierra, Piriapolis, Uruguay; tel.
          (589-432)2269.
               One reason to purchase property through a
          corporation rather than as an individual is the
          Uruguayan inheritance law, which is  rooted in the
          concept of primogeniture.  Any property you own as an
          individual will upon your death go to your eldest son,
          no matter what your will says.  Shares of stock,
          however, can be left to whomever you choose.
          
               In each of the previous examples, you can put the
          fundamental principles of international
          entrepreneurship to work.  First, by purchasing
          property across an international border, you can
          probably reduce or eliminate many of the taxes that
          would otherwise eat up most of your gains.  (Except for
          the United States and the Philippines, most other
          countries do not tax the profits of their citizens
          provided those profits are made and remain outside the
          country.)
               Second, by buying property in an region in which
          the demand for housing is growing, you harness the
          power of incremental gains, the awesome power of
          compound interest.  As we observed earlier, the power
          of tax-free compounding can be breath-taking indeed. 
               A US$100,000 property in one of the region of
          opportunity we have described, could easily appreciate
          at a rate of 10% per year.  That means it will be worth
          US$259,372 in 10 years.  That's almost like getting a
          home for free.  In effect, you have made US$159,000 --
          more than you paid for the place originally.
               Compare that to a US$200,000 home in the present
          suburbs of the English speaking world -- where values
          are falling at 5% per year.  That would leave you with
          only US$126,049 in 10 years.
               The net difference in wealth accumulation over the
          10 year period is a stunning US$408,000 (home value,
          US$259,000 plus cash saved, US$159,000, equals
          US$408,000)! But as you will see, this is just the
          beginning.
          
          
          France: Last chance for bargains
          
               If you bought property along the French
          Mediterranean coast 20 years ago, you probably no
          longer have to work for a living.  Real estate prices
          along France's Mediterranean coast are now
          astronomical.  Investors were able to do fabulously
          well as prices rose close to 20% per year.  
               A flatter property market has made rapid
          appreciation in most vacation spots a thing of the
          past.  Uncontrolled development has turned the
          Mediterranean into the biggest sewer of Europe.  In
          many places, untreated sewage is pumped into the sea
          from the monstrous concrete buildings that line the
          boardwalks.  
               No wonder tourism is shifting to other areas where
          prices are still moderate.  
               One area that is set to profit from this trend is
          France's Atlantic coast.  And now may be your last
          chance to get in on a major French real estate wave. 
          The Cote d'Atlantique offers excellent value, double-
          digit appreciation potential...and the most
          breathtaking ocean sunsets in the world.
               Only marginally affected by the U.S. recession,
          Europe has continued to post steady economic growth
          rates.  And by the time the United States emerges from
          recession, Europe will have shaken off any lingering
          weakness.  
               Europe's older, affluent, and more mobile
          population is expected to travel abroad more.  In
          addition, travel-starved East Europeans are taking
          advantage of their newfound liberties to visit places
          in France, Spain, and Italy. 
               Prosperous North Europeans will escalate demand
          for warm coastal real estate -- something unavailable
          in those countries.  As travel and currency barriers
          disappear in Europe and cross-border banking takes
          hold, more and more Europeans will take their five- to
          six-week summer vacations abroad. 
               For all its beauty and easy accessibility, prices
          along the Cote d'Atlantique remain comparatively low. 
          Whereas US$100,000 hardly buys you an outhouse on the
          Cote d'Azur, it can buy you a house or condominium in
          La Rochelle, perhaps the most beautiful spot on the
          Atlantic coast.  We have identified a wide range of
          reasonably priced dwellings for vacation or rental
          property in this up-and-coming region.  
               La Rochelle is situated midway up the coast.  It
          first gained fame as a Protestant stronghold besieged
          by Louis XIII in the 17th century (Alexandre Dumas fans
          will recall the adventures of the three musketeers on
          that occasion.) 
               Later, the city was a stopping-off point for
          emigrants bound for Canada.  Today this resort town,
          with its old port, whitewashed townhouses, and elegant
          18th-century buildings set off by broad, white beaches,
          is the retreat of French President Francois Mitterand. 
               If you fancy a bright apartment overlooking the
          sea, the real estate firm Plaisance Immobiliare had a
          two-bedroom condominium with ocean views available for
          an asking price of only US$125,000.  With a garden
          terrace and master bedroom overlooking the sea, a
          second bedroom and a large, open living room with views
          of the water, the unit features a state of the art
          European kitchen, bathroom, and top-quality new
          construction.  It is located near the harbor, in a
          central part of town. 
               Looking for something a little less expensive? 
          With an asking price of only US$100,000, a small house
          in the La Genette quarter of La Rochelle might be to
          your taste.  With a yard, two bedrooms, kitchen, dining
          room, bath, and workshop, it is convenient to the beach
          and all amenities. 
               If you are willing to spend more money, in the
          LeMail quarter a three-bedroom condo on the water can
          be yours for about US$350,000.  With three bedrooms, a
          large open living room, a kitchen, an office and two
          baths, the condominium offers a great view of the sea.
               Foreigners can easily obtain mortgages in France. 
          Although you may have to put 50% down, rates of 10%-11%
          are competitive.  France is not experiencing the
          banking crisis of the United States, and banks exist to
          grant loans -- so loans are more readily granted. 
               Besides La Rochelle, Biarritz, the grand lady of
          the coast near the Spanish border, is also experiencing
          a renaissance.  Once the favorite spot of Queen
          Victoria and Bismarck, Biarritz offers dramatic cliffs
          and rosy sunsets.  
               We recently saw a newly renovated one-bedroom
          apartment with views of the sea, a terrace, and a
          gourmet kitchen, with an asking price of about
          $140,000.  And the picturebook town of St. Jean de Luz,
          also in the Basque country, is only a sailboat's ride
          north of the Spanish border.  It possesses a gorgeous
          port and a wide, sandy beach in the shape of a half-
          moon.
               While these prices may not strike you as exactly
          bargain basement, you have to consider the investment
          potential of the whole area.  Considering the growing
          popularity of Biarritz and La Rochelle, we anticipate
          an annual increase in tourism of about 10% a year for
          the next five years. 
               Aside from the rapid appreciation, you will be
          able to rent out your condo or home to tourists in the
          time you are abroad.  Rents for tourists are
          considerably higher than regular rates (which typically
          are in the US$900 a month range.) Property prices
          outside La Rochelle are dramatically lower.  You can
          buy 500 square meters of land for around US$25,000,
          then custom build a house according to your own needs. 
               For further information on real estate in La
          Rochelle, contact Eric Baudon (who speaks English) at
          Plaisance Immobiliare, Agence de la plage, les Iles du
          Ponant, 2 avenue du Lazaret, 17000 La Rochelle; tel.
          (33-46)44-17-26 or 3346-44-03-33; fax (33-46)45-11-27. 
               For real estate in Biarritz, contact Danielle
          Moruau at Agency Benquet, 4 place Clemenceau, 64200
          Biarritz; tel. 59-24-04-91; fax 59-24-99-25.  In St.
          Jean de Luz, contact M. Goudin at Agency Benquet (no
          connection with the one above), 86 rue Gambetta; tel.
          59-26-04-92. 
          
          
          Portugal: Poised for growth
          
               If you had owned even a few acres of the part of
          Orlando, Florida that became Walt Disney World about 20
          years ago, you'd no doubt have a wealth of amusements
          at your disposal today.  Yet when Walt Disney first set
          his sights on the swampy land (which he bought for less
          than US$100 an acre), he was almost laughed out of the
          state. 
               Great real estate opportunities are hard to come
          by -- and even harder to recognize.  But there is a
          market in Europe with Orlando-like potential.  
               We have discovered the virtually untapped promise
          of Portugal, which could make real estate a worthwhile
          investment for business people...or those just dreaming
          of peaceful retirement in a temperate climate. 
               With a cost of living half that of Germany or
          France, and one of the lowest crime rates in the world,
          we predict Portugal will become the haven of choice for
          both retirees and vacationing baby boomers, as well as
          investors.  For real estate speculators, that means a
          chance to profit in the Portuguese boom towns of the
          next decade.
               Once regarded as an economic wallflower
          outperformed by the more flashy Euro players such as
          Germany or Spain, Portugal has recently developed one
          of Europe's faster-growing economies.  In part this has
          been a result of extensive reworking of tax and fiscal
          policies, environmental and safety regulations, and
          employment policies. 
               Portugal has also embarked on privatization of
          state-controlled monopolies and development of
          investment incentive programs.  Also, the country has
          some of the lowest wage rates in the Community, which
          keeps the cost of living low and foreign investment
          high. 
               The tourist industry has played an increasingly
          important economic role in recent years, as new resorts
          and hotels spring up around the country.  In 1991,
          tourism will account for 8% of the country's gross
          national product. 
               At the same time, the population of foreign
          residents has nearly doubled in the past eight years --
          from 60,000 in 1982 to over 101,000 in 1990.  While the
          majority of foreign residents is North African Arab and
          South American, the ranks of American and European
          residents (particularly British) are swelling as well. 
               No doubt the first attraction of the Iberian
          Peninsula is the mild Mediterranean climate.  For years
          Portugal's Atlantic coast has been a favorite vacation
          spot for prosperous Northern Europeans.  Beaches there
          are pristine and sunny.  
               The area that has benefitted most from the tourist
          boom is the Algarve.  Accordingly, prices here have
          appreciated dramatically over the past few years -- and
          will continue to zoom upward.  Non-tourist businesses
          in manufacturing and service industries are rapidly
          springing up. 
               Traveling northward along the Algarve, you will
          find plenty of Old World traditions mingled with a
          modern pace.  Behind sports cars speeding along the
          main road you will also see donkeys pulling orange
          carts, women in black balancing baskets on their heads,
          and children going to the beaches armed with harpoons. 
               This is where bargains abound.  The countryside is
          dotted with ancient castles, artisan villages,
          churches, and ruins.  One historic property we found is
          located on the outskirts of a quiet village near
          Paderne along the Algarve coast.  This nearly 100-year-
          old cottage could be converted into a three-bedroom
          villa.  A 45-minute drive from Faro International
          Airport, this property includes a walled fruit garden. 
          But, although it is equipped with a phone, plumbing,
          and electricity, the cottage is in need of some major
          repairs.  Accordingly, the asking price was about
          US$60,000.  (It could probably be bargained down closer
          to US$50,000.) 
               For more information, contact Joan Browne Ltd.,
          Maritenda, Boliqueime, 8100 Loule, Algarve, Portugal;
          tel.(351-89)366-704.
               More removed from the prime Algarve tourist area,
          the Serra de Monchique and Serra de Caldarao are still
          widely undiscovered by real estate developers.  These
          are the "Disney World" regions of tomorrow.  Here
          prices are still low; you'll find quaint old farmhouses
          that can be bought for as little as US$30,000 and
          renovated.   
               There are also plots of land for sale.  In a
          developed region, a two-bedroom house built by a
          respectable builder starts at about US$32,000.  We
          found one 2.5-acre plot in Serra de Caldarao that cost
          US$6,700. 
               In the fishing village of Estoril near the port of
          Cascais, we noted prices for luxury town houses with
          one, two, and three bedrooms ranging from US$30,000 to
          US$100,000.  For current listings, contact Movi Ltd.,
          P.O. Box 19, Estrada Marginal B1. 3,1, 2750 Cascais,
          Portugal; tel. (351-1)483-1032. 
               You can rent out properties as well.  The Algarve
          in particular has a healthy rental market in the summer
          months.  (One American resident we spoke to rents his
          villa out for US$6,000 a month in the summer.)  
               In general, full-time renters find tenants for 20
          weeks of the year during European vacation months.  If
          an agency handles rental details, you can expect a
          return of 50% of the rental price.  
               Once you decide on a place, you should continue
          the purchase process with the help of a lawyer.  You
          will be asked to sign a promissory note for a minimum
          of 10% of the purchase price of your home or land.  You
          can finance the rest through a Portuguese bank. 
               The promissory note is good for three months.  We
          advise that you be on hand to sign it -- Portuguese
          bureaucrats may need the pressure of your presence to
          be galvanized into finishing all the paper work before
          the note expires. 
               You also should obtain an import permit to take
          money into the country.  Otherwise, you may not be able
          to take the money back out should you sell your
          property.  The permit also gives you the flexibility of
          choosing to make your transaction in a currency
          stronger than the Portuguese escudo. 
               There is a 10% tax on the purchase of most
          properties.  With lawyer and notary fees, your actual
          cost comes to nearly 15%. 
               With EC development funding, Portugal is slowly
          incorporating the modern facilities and technologies
          into its infrastructure.  This, coupled with the influx
          of foreign residents and travelers, is a bullish
          indicator for future growth. 
               For more information on real estate and investment
          in Portugal, contact the Portuguese Trade Commission
          office, or commercial attache at the Portuguese
          Embassy, in your country.
          
          
          Ireland:  some of the lowest priced real estate in
          western Europe 
               By European standards, property is amazingly
          inexpensive in Ireland.  Recently, a seaside cottage on
          the scenic Dingle Peninsula sold for less than
          US$15,000.  Another picturesque home with a view of the
          Blasket Islands went for about US$27,000.  Couple these
          bargains with the generous tax incentives for business,
          and you could enjoy a life that is both peaceful and
          profitable. 
               Ireland offers a maximum 10% tax rate for
          manufacturing businesses, and for international
          financial service businesses located in the Dublin free
          zone.  There are also special tax holidays for
          businesses in the Shannon area.  Contact the Irish
          Industrial Development Authority office or the
          commercial attache of the Irish Embassy in your country
          for more information.
               In addition to its favorable economic climate for
          foreign industry, Ireland is one of the world's top
          retirement havens.  To gain approval for permanent
          residence, you need only prove financial independence. 
               While Dublin boasts all the usual cultural
          trappings of city life.  Outside Dublin are peaceful
          country retreats, beaches, ancient villages, and
          resorts. 
               In general, older cottages in the countryside go
          for about US$25,000, while newer bungalows in the
          countryside go for closer to US$50,000.  The most
          attractive places to live are along the seacoast, and
          far in the west.
               To buy property in Ireland, contact a house agent,
          estate agent, or auctioneer.  (Estate agents charge a
          commission of 1.5% of the purchase price).  Be aware
          that Irish banks and building societies do not approve
          mortgages for retirees and non-residents.  So chances
          are you will have to pay cash or get a loan from a
          local bank in your home country. 
               Traditionally houses are sold at public auctions;
          however, because the market is so depressed, this
          option is disappearing.  Irish auctions can be cut-
          throat, so we suggest hiring a solicitor or estate
          agent to do the bidding for you.  A solicitor will
          charge about US$500. 
               In addition to houses, non-citizens can also
          purchase up to five acres of land for private
          residential use.  To do so, you need the permission of
          the Land Commission, (Agriculture House, Kildare
          Street, Dublin 2; tel. (353-1) 789-011 or (353-49)
          61022.) You will have to make a down payment of between
          10% and 20% of the purchase price, and you'll pay a
          stamp duty of between 3% and 6% as well.
               Although property is fairly reasonable, the cost
          of living in Ireland is considered high.  Appliances,
          clothing, and cleaning supplies are about double the
          price in England.  In addition to property taxes (1.5%
          if your residence is valued at more than US$130,000),
          when you purchase a house you also pay a stamp tax.
               Still, there are many personal tax breaks.  In
          addition to high personal exemptions, residents over 65
          are entitled to an age allowance of approximately
          US$500.  Married couples over 65 are entitled to about
          US$650.  You can write off medical insurance premiums,
          health expenses, rent if you are over 55, and interest
          on loans. 
               Also, homes or gardens of architectural,
          scientific, or historic significance are often exempt
          from property taxes.
               For more information about taxes in Ireland,
          contact: Office of Revenue Commissioners, Division 1,
          Dublin Castle, Dublin 2; tel. (353-1)679-2777. 
               If you can imagine yourself hiking in Sligo, with
          its dramatic landscape and prehistoric gravesites...or
          wandering in the morning mist that rolls off one of
          Killarney's many lakes, then you are ready for this
          serene adventure.
          
          
          Campione: little known tax-free backdoor to Switzerland
          
               Campione, on the shores of Lake Lugano, is
          distinguished by its very uniqueness.  It is a little
          piece of Italian soil, completely surrounded by
          Switzerland.  There are no border controls so there is
          complete freedom to pass in and out of Campione.  It is
          located in the Swiss Canton of Ticino, about 16 miles
          from the Italian border, and 5 miles from Lugano by
          road.  It has about 2000 inhabitants.
               Campione belongs economically to Switzerland, and
          uses Swiss banks and governmental facilities such as
          post office, telephone, telegraph, and traffic laws. 
          Cars registered in Campione bear Swiss license plates.
               Unlike Switzerland, there is no problem for
          foreigners in obtaining residence rights in Campione,
          so the enclave is enjoying a sudden popularity with
          people looking for a way to obtain Swiss residence. 
          Having a house or apartment in Campione is all that is
          necessary to obtain a residence permit in Campione,
          although the local authorities do require that
          registered residents spend at least some time in
          Campione.
               The lack of border controls gives Campione
          residents totally unrestricted access to all of
          Switzerland and Liechtenstein, so it can be a most
          valuable European executive base.
               Besides its residence attraction, the enclave is
          also gaining in popularity because it has a unique tax
          haven status.  Although part of Italy and subject to
          Italian law, there are special tax requirements for
          Campione.  There is no personal income tax and no
          municipal tax as all of Campione's income is raised
          from the operation of a municipal casino.  Campione
          residents are not subject to Switzerland's many double
          taxation agreements with such countries as Canada, the
          U.S. and most of western Europe.
               Companies formed in Campione have many advantages
          over Swiss companies, as they are able to use Swiss
          banking facilities, have a mailing address that appears
          Swiss, but not be subject to Switzerland's relatively
          high income and withholding taxes.  Company law is the
          same as in Italy, and a corporation can be formed with
          a minimum capitalization of about $1000.  Company
          formation takes longer than in Switzerland, but unlike
          Switzerland, a Campione company can be entirely owned
          and directed by foreigners.  The formation work is
          usually handled by Italian lawyers in Milan, and the
          fees are modest, since this is not a special or complex
          matter.  The personal and company tax exemptions do not
          apply if the resident is doing business with Italy, but
          business with Italy can readily be done through a Swiss
          or Liechtenstein corporation as an intermediary.
               Foreigners may buy real estate in Campione without
          restrictions, unlike Switzerland, so acquisition of a
          site in Campione for a European regional headquarters
          is readily carried out with minimal red tape.  Demand
          for real estate in Campione has pushed prices well
          above the level or surrounding Ticino.  As a part of
          Italy, the European Community regulations apply to
          businesses, and this includes such things as the right
          to establish a business and residence by any citizen of
          another EC country.
               The official language is of course Italian, and
          the enclave is in the Italian speaking portion of
          Switzerland.  Many international schools are located in
          Switzerland, so school arrangements for children of
          transferred executives can be easily made.
               The recent referendum in which Swiss voters
          rejected an affiliation with the European Community
          means that Campione will continue to have its special
          value for sometime to come.  Without the free access to
          Switzerland that EC affiliation would have provided,
          the backdoor route via Campione will continue.  
               There are many recreation facilities in the
          immediate area, including golf, ski resorts, and water
          sports.  Milan, and all of its cultural attractions, is
          only an hour away.
               Campione's unique status has its origins in the
          Thirteenth Century when the village and its territory
          were presented by the Lord of Campione to the Church of
          St. Ambrosius of Milan.  This feudal property survived
          European upheavals and remained secure to the end of
          the 18th Century, and then joined the new Cisalpine
          Republic.  Afterwards Campione fell into Austria's
          hands for a short period and was finally incorporated
          into the new Kingdom of Italy.
               It is one of the world's most unique, and least-
          known, tax havens, and a most attractive base for
          companies looking for a regional headquarters in
          Europe.  It is also one of the most expensive tax
          havens for real estate, because there is so little of
          it.  Apartments will range from $2500 to $3500 per
          square yard, and you usually pay the broker a 3% buying
          commission on top of that (the seller also pays 3%).
               Getting started in Campione is much more difficult
          than in other tax havens, because the enclave is not
          promoting itself, and there is no central office of
          information to which one can turn for instant
          literature.  You are not unwelcome, but nobody is going
          to go out of their way to let you in on this secret
          haven.  So there are no promoters or agents that you
          can write to in advance to send you packets of nice
          brochures.
               The only effective way to establish in Campione is
          to make a personal visit and spend time talking to
          people.  Even the real estate brokers are not
          particularly interested in whether or not they get your
          business, and may not answer your letters.  The
          following contacts are suggested for those who are
          serious, but at the Campione end they may not think you
          are serious until you arrive.
               Peter Wehner, Viale Marco 27, Campione. 
                 Tel. 0041 91/68-75-49 or 68-63-45.  Speaks
          English and has rental apartments.
               Immobiliare Witzel, Via Matteo at the Lido
          (beach), Campione. Tel. 68-67-19 or 68-60-65.  This is
          the major brokerage firm in Campione, but they do not
          speak English.      
               Ralph E. Koklar, SAS & Co., Corso Italia 2,
          Campione.  Tel. 68-52-44 or 68-55-10.  Local property
          developer who sometimes has something available.
               Mr. Werner Schilling, InterPresent & Co., Corso
          Fusina 2, Campione.  Tel. 68-58-59.  Part-time broker.
               A good source of further information is The
          Campione Report, available for $125, including airmail
          postage to anywhere in the world (or $100 by slower
          surface mail) from Scope International Ltd., 62 Murray
          Road, Waterlooville, Hants. PO8 9JL, Great Britain. 
          They also accept Visa & MasterCard.
          
          
          
          
