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Kathleen Peddicord is the Publisher of Live and Invest Overseas and author of, “How to Buy Real Estate Overseas.” She explains how a real estate investment overseas can double as a retirement plan and why more people should look into retiring in France.  There are are buying opportunities in “crisis markets. Surprisingly, Medellin, Colombia, is a good retirement spot, but there are numerous places to avoid. Kathleens discusses how to make retirement possible on a small budget, and the strategies involved for choosing the right property in the right country. She also breaks down how an investor can manage the asset. The most important information Kathleen gives: what every overseas property buyer needs to know about moving money around the world.

Kathleen Peddicord has been researching, writing, speaking, and presenting on the topics of living, retiring, and investing overseas for more than 28 years. Her newest book, “How To Buy Real Estate Overseas,” is the culmination of decades of personal experience living and investing around the world. Kathleen has moved children, staff, enterprises, household goods, and pets from the East Coast of the United States first to Waterford, Ireland, then, seven years later, to Paris, France, and, most recently, to Panama City, Panama.  For more than 23 years, Kathleen was Editor and Publisher of the International Living group. In 2007, she decided to take a break, during which she did two things. First, Kathleen launched a new publishing group,  husband, Lief Simon, decided to make a third international move, with their family and Kathleen’s new business, this time to Panama, where they live today with their 13-year-old son and 23-year-old daughter.

Kathleen has traveled to more than 50 countries, invested in real estate in 21, established businesses in 7, and renovated properties in 8. She has appeared often on radio and television detailing opportunities for living and investing around the world and has written innumerable books on the topic, including “How To Retire Overseas,” published by Penguin Books in 2011, and, most recently, “How To Buy Real Estate Overseas,” to be published by Wiley & Sons in April 2013.

Kathleen is the generally recognized Retire Overseas expert by The New York Times, the AARP, Money Magazine, The Economist, and U.S. News & World Reports, for whom she writes regularly.

Visit Kathleen Peddicord’s website at www.kathleenpeddicord.com. Visit Live And Invest Overseas at www.liveandinvestoverseas.com.

Check out this episode

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ANNOUNCER: Welcome to the JetSetter Show, where we explore lifestyle-friendly destinations worldwide. Enjoy and learn from a variety of experts on topics ranging from upscale travel at wholesale prices, to retiring overseas, to global real estate and business opportunities, to tax havens and expatriate opportunities. You’ll get great ideas on unique cultures, causes, and cruise vacations. Whether you’re wealthy or just want to live a wealthy lifestyle, the JetSetter Show is for you. Here’s your host, Jason Hartman.

JASON HARTMAN: Welcome to the JetSetter Show! This is Jason Hartman, your host, where we explore lifestyle-friendly destinations worldwide. I think you’ll enjoy the interview we have for you today, and we will be back with that, in less than 60 seconds, here on the JetSetter Show.

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ANNOUNCER: Now you can get Jason’s Creating Wealth in Today’s Economy Home Study Course. All the knowledge and education revealed in a 9-hour day of the Creating Wealth Boot Camp, created in a home study course for you to dive into at your convenience. For more details, go to www.JasonHartman.com.

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JASON HARTMAN: It’s my pleasure to welcome Kathleen Peddicord back to the show! She is the publisher of Live and Invest Overseas, and the author of How To Buy Real Estate Overseas. And she just has a wealth of information about the world, literally, of real estate investing, and living overseas. Kathleen, welcome. How are you?

KATHLEEN PEDDICORD: I’m very good. Thank you very much for inviting me back.

JASON HARTMAN: Good, good. Well it’s a pleasure to have you back. And you’re coming to us from Panama City, Panama today, right?

KATHLEEN PEDDICORD: I am. Yep.

JASON HARTMAN: Fantastic. Well, tell us a little bit about your new book!

KATHLEEN PEDDICORD: The focus is, as the name suggests, how to buy real estate overseas. And the big idea behind the book really, it can be boiled down to a single word: diversification. And that’s the driving idea behind the whole idea of buying real estate overseas right now, because I think that in the current global climate, that diversification is key. And not in the traditional, conventional sense only of diversifying assets. Everyone knows that you don’t want all of your eggs in one proverbial basket when it comes to investing. But the idea here goes beyond that to diversifying your life, your lifestyle, your future, your whole—everything about how you’re living, what you’re doing, your future, your family’s future, your legacy, and on and on, is all wrapped up in this.

JASON HARTMAN: Yeah, absolutely. And you know, Kathleen, I’ve been so fascinated by this topic, having traveled extensively—I’m up to 65 countries now—looking at real estate. Actually with some of your affiliates in Panama, Argentina, etcetera. And one of the things I really struggle with, when it comes to overseas investing, is that it seems like in so many of these countries, unlike the US, you have—you have very little middle class. And granted, the middle class is totally under attack in the United States, in my opinion. But you know, we still have a pretty big middle class here in the States. And when you look at real estate investing, I want to invest for cash flow. Sure, appreciation, capital gain, speculation, is great when it happens. But it’s not super reliable. It seems like in a lot of these countries there’s really not much of a renter class. So when you’re investing, maybe you buy a home for retirement, a second home, that type of thing. But on the pure investment side, I want cash flow. I want income. And I think a lot of investors feel that way.

KATHLEEN PEDDICORD: I would agree entirely. And in fact, a big section of the book is given over to this idea. But as you say, there are really two ways to make money from investing in real estate. Capital appreciation, and then cash flow through rental income or yield. And in the current climate, there aren’t a lot of markets where you can have some reasonable expectation of capital appreciation. There just aren’t. Last decade—mid last decade—everyone thought that all property markets all around the world would only ever go up. All markets were expanding, and so, people though, you know, you could buy almost anything anywhere, and feel really sure that two, three years from now it’d be worth a whole lot more than you paid for it.

JASON HARTMAN: We have a word for that. We have a phrase for that. That’s called the Greater Fool Theory. It doesn’t work.

KATHLEEN PEDDICORD: Exactly.

JASON HARTMAN: It doesn’t usually end well.

KATHLEEN PEDDICORD: It doesn’t hold up. and we’ve seen how badly that can turn out in a lot of markets where that—the Greater Fool Theory is a great way to describe, for example, what happened in Ireland, to take one market. That’s exactly what happened there. The Irish just kept selling and reselling and reselling to themselves, their own land, and property, and that completely fell apart. And the Irish economy and property market—they’ve collapsed. And Ireland’s not the only place where this has happened. It’s happened in a number of markets that are now in all-out crisis, and then many other markets have seen slides, have seen devaluations. They aren’t in outright crisis, but they’ve certainly—values have fallen by substantial margins over the past five or six years. But that is not everywhere. That is not the case everywhere. While capital appreciation is not an agenda right now, and we’ve seen that that doesn’t always hold up, and in some cases it can completely fall apart, and I would say that’s not a realistic agenda, investment agenda right now, but not all markets, at the same time, are contracting. And you made the point that in much of the world there’s not the kind of middle class that there is in the United States, there’s not that kind of segment of the population. That’s very true, but that’s also not necessarily—that doesn’t necessarily mean that there are no markets to invest in for cash flow.

JASON HARTMAN: Right, right. And you know, I would just liken the middle class to the renter class. That’s what I’m saying.

KATHLEEN PEDDICORD: Exactly.

JASON HARTMAN: And a lot of these countries, you’re not gonna rent to the locals. The