International Investments in Population Growth Problems


International investments in population growth create wealth in many new ways. Population growth will bring inflation and international investments can help fight this purchasing power scourge. Investments in global rural real estate is one such international investment. However you can see more international investments that fight inflation below.

Recent messages have looked at how America’s population explosion will create opportunity in Small Town USA.

This is not the only new profit potential that will be created. Population will grow all over the world! Rural land offers good value in other parts of the world as well.

Merri and I own land in Small Town USA and rural property in Ecuador.

You will see why this house in Ecuador for example offers such special value below.

However the rural phenomenon is everywhere!

One Italian reader shows that Europe offers such potential also. He wrote: Your analysis is right. On the Costa Azzurra in Italy you buy a 1,000 Sq feet condo with two bedrooms, at between $700,000 to $1 million. In Milano or Rome a 1,000 sq feet goes for $500,000 to $1 million depending of location. But in Abruzzo you buy the same 1,000 sq feet at $100,000 to $200,000 and you are 1 hour from Rome by train. Dario

Readers from Australia also shared this fact and said:

Here in Australia inflation, mostly stemming from heightened petrol prices, is forcing young people seeking to buy an affordable house inland like the migrations to middle America. Some small towns here are facing massive drought though and seeing their people leave to go to a variety of new areas. On a bright note, some southern mango farmers took a chance, headed to a part of the northern territory where water is plentiful and struck it rich in the ‘new world’ with beautiful produce. We are considering migration and interested if people are also setting up many new companies in Ecuador as well as buying real estate? Thanks for a top newsletter covering many angles, Rebecca and John

So population growth counts everywhere…as does water!

My belief is that as this growth makes urban living more complicated and rural life more attractive, rural prices will soar.

This growth creates other challenges and opportunities as this reader notes:

Gary, We’ve been letting the “developers” convert prime arable land into non-productive residential or commercial property for more than a century. Today, I live in San Gabriel Valley, which is also where I grew up. When I was a kid (1940’s), the valley was mostly orchards and small truck farms, dairies and breeders of various types. On the street where I lived you could find the following: a grain mill under which was a small egg hatchery. The hatched chicks went next door to an egg farm. Across the street from the egg farm was an aviary where thousands of exotic tropical birds were bred. Catercorner from the aviary was a guy who raised ducks. Next door to the duck farmer was a lady who raised turkeys. Next door to her was a guy who had a rabbit ranch. Across the street from those three was a dairy. Behind our house were ten acres of orange trees and, next door to the orchard was another dairy. My father had two acres of walnut trees and, on another two acres he grew potatoes as a hobby. We raised our own rabbits, turkeys, ducks, and chickens. My mother kept a vegetable garden. We grew almost all the food we ate ourselves. Many people had horses, mules, donkeys, goats, pigs and sheep.

Today? It has all been covered over with asphalt, freeways, sidewalks, houses, motels, commercial buildings, you name it. No more orchards. No more farms. You can’t have a horse or a goat. How did California go from being the largest exporter of produce in the world in the 1950’s to a net importer of almost all produce except avocados and artichokes?

How asinine is it for California to get its oranges from Florida, its grapes from Chile, and its milk from Idaho? It happened because we allowed it. We let the state legislature and local governments slowly but surely to tax farmers out of existence. The land taxes just keep creeping sneakily up until, lo! One day the farmer couldn’t afford to pay them and had to sell out to, guess who? A land “developer”.

I put quotes around the word “developer” because those people don’t “develop” anything. They are net destroyers of the environment. As Joni Mitchel sang, “They tore down paradise and put up a parking lot.”

New York City is the only logical city in America. They built UP on a big rock that wouldn’t grow much of anything. The rest of us spread OUT until we gobbled up all the arable land. The only thing we grow on it is our water-squandering lawns.

Can we do anything about it? Probably not. Following the Supreme Courts Kelo decision, it will get even worse. Now, if they see a farm that still happens to exist inside a city, they can just snatch it “for the public good” and build a Wal-Mart on it. No need to wait for the tax system to do its evil work anymore.

As far as farming goes? Hydroponic gardens are next…Gary

I could not agree more that our population growth creates huge challenges in the areas of pollution, food production, energy and water.

To this end we are about to announce our new Borrow Low Deposit High Portfolios for 2007. One of these portfolios will be created from loans in Swiss francs that are invested in five global businesses we believe can help meet some of the challenges of population growth.

These firms are:

Kurita Water Industries Ltd. A Japanese firm that manufactures sells and maintains water treatment, water waste purification and soil remediation systems, chemicals and equipment.

Hyflux Water, a Singapore company with patented water purification membranes specializing in China and the Middle East

Seche, a French firm involved in environment waste management.

Vestas Wind Systems, a Danish Company that builds windmills for energy.

Q Cells AG, a German company that manufactures solar cells.

We’ll look at each of these business in more detail in future messages. Here let’s learn a bit more about Q Cells Ag.

Business Week writes: These are sunny days for Q-Cells. First-half sales at the German maker of solar cells more than doubled, it recently bagged several awards for best startup and, to top it off, its shares soared 25% in their trading debut on Oct. 5, giving it a market value of euro 1.75 billion.

Few can ignore the buzz surrounding solar energy companies as record oil prices and growing concerns about greenhouse gas emissions spark interest in alternatives to fossil fuels. In Germany, one of the world’s largest solar energy markets, this level of investor excitement has not been seen since the Internet craze in the late ’90s, and Q-Cells, as the largest stand-alone maker of solar cells, is a particular draw.

You can read more at http://www.businessweek.com/magazine/content/05_43/b3956805.htm

Until next message good health, wealth and investing.

Gary

Merri and I are in Ecuador conducting our latest International Business and Investing Course. We are also looking at real estate in this rural area. Here is one house we viewed today (to show delegates next week) overlooking the Provincial capital of Ibarra. This house has three bedrooms, three baths, a billiard room, indoor squash court, gardens to die for, outstanding stone work and sculptures, incredible views and is just minutes from the Pan American Highway. Asking price. $90,000.

Here are the gardens.

Join us for our next International Business and Investment course here March, 2007 and inspect real estate like this as well. See http://www.garyascott.com/catalog/IBEZec/


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