|
skier, not to be a wet blanket, but your idea doesn't hold water.
First off, the yield on a 10 year US Treasury is closing in on 5% right now. That's backed by the full faith of the government of the United States. You, on the other hand have no assets and no way to guarantee your investors their money back. That would make you a sub-junk level borrower if you were a corporation. You will need to offer sky-hgh rates to people to take a risk on you.
Second off there is absolutely no way to know if a land investment will appreciate, especially one in a near-third-world nation. Take a look at Tokyo real estate values over the last 20 years. Still think land always appreciates? What will happen to your money in the event of civil unrest?
Third, you will be "investing" in a highly ILLIQUID asset. You may or may not make some positive net return with time, but it likely won't be available during much of the holding period.
Finally, please summarize in one paragraph what will happen to your holdings in the event of a Latvian currency devaluation. If you can't do that much then you better think doubly hard about what you're getting into.
|