What is it about rich people buying up cheap properties and driving up the prices of homes all in the interest of making extra money while people find themselves unable to afford a place to live? Whatever emotional reasoning goes on within the hearts of the wealthy, property investments will continue to form the backbone of financial investment strategies for years to come.

One rich person was wondering if it was worth it to buy up cheap property overseas to increase their already significant wealth. They took their questions to the people in the r/fatFIRE community — a group focused on financial independence and retiring early with “a fat stash” of money. Here is what they said.

Please keep in mind that anything you read in this thread, as well as in this article, are opinion, and you should consult with an expert before making any kind of investment decision.

The Question

The author of the post is a 24-year-old with more than $18 million in savings and investments. They say they are terrified of some kind of unforeseen disaster or a divorce wiping out their retirement. They admit they were lucky to have so much money (though they didn’t go into detail about how luck factored into it with any specifics), so they are looking for some kind of protection or long-term investments that will guarantee their money is safe no matter what happens.

The author says they have been interested in buying property in Europe, Dubai, or Canada, for some reason, or a trust in the Cook Islands, but they are unsure how the difference in jurisdictions will come back to bite them. They wanted to know if anyone in the community has looked into the same investment option and what they did.

The Community Response

From the context of the original question and the information provided by those who responded, it was clear that the author was a very young person with little life experience who didn’t quite understand what they were asking or why.

First, rich people should not be buying up properties in the first place. Even though this has become normalized in modern culture, it raises the prices of homes, increases rent, and forces many people out of their homes when they can no longer afford to live there. Too many rich people are not prepared for the responsibilities that come with being a landlord.

Second, every other country has its own jurisdiction and legal system. They will still have the ability to access and get your money if they want it. The world outside the United States is not some wild west of lawlessness. Governments will get the money that is owed to them.

Third, the author is preparing for a divorce from a marriage that hasn’t happened yet. So, instead of worrying about a divorce taking all the money that they (admittedly) didn’t earn, they should worry about getting married first, and making sure they are devoted to that marriage so it doesn’t end in divorce. Clearly, the author has come to see everything through the lens of their money, and they need to learn to see the world like a normal human again.

The author would be better served by investing their funds in U.S.-based companies or stock indexes, as they require much less work, less knowledge of international law, and will probably save them money in taxes.

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