When an economic recession occurs, one thing that happens for sure is the unemployment rate goes up. You can see a graph of the California unemployment rate since 1967 on the St. Louis Federal Reserve Bank’s website. Below is a copy of that graph until 2019-01-01.
I occasionally use Upwork (formerly eLance) to hire contract workers in other countries to work on some projects. Considering that I live in the San Francisco Bay Area, which happens to be one of the most expensive places to live, I have to constantly remind myself to price my projects according to the economy and cost-of-living where I hire workers overseas. Here’s an example cost analysis.
US Cost Let’s say that, based on the type of work you need done, a fair US wage would be $10 per hour. Let’s also say that you expect the work should be done in no more than 17.5 hours. Therefore, the total project cost in the US would be $175.
Target Country Let’s say you hire someone in Egypt to do the work. You’ll need a way to fairly and reasonably convert wages in the US to wages in Egypt. One way to do this is by comparing each countries GPD per capita, which is an estimate of the average salary in a particular country.
GDP Per Capita According to the World Bank, as of July 6, 2018, the GDP per capitas of the US and Egypt are:
If you invest $100,000 in stocks, with a 10% ROI, you’ll get $10,000 at the end of year one.
If you invest $100,000 in real estate (20% of a $500,000 house), with a 10% ROI, you’ll get $50,000. Your ROI is based on the value of the property ($500K), not your $100K down payment. Most of your ROI comes from borrowing $400,000 from the bank.
Of course, you can also borrow $400,000 and dump it all into buying stocks but
no one, especially a bank, would lend you $400,000 to invest in stocks, and even if they did, the interest rate would be more than 10%, causing you to lose money
unless you invest in something like index funds, investing in individual stocks is more risky because their values can plummet in very short periods of time, e.g. Facebook dropped by 26.4% in just one day. A single-day devaluation like that would never happen in real estate. Real estate depreciation can occur, but it would take at least months.
This information applies to properties in California (specifically, Alameda County).
When a bank begins the foreclosure process, they must file a Notice of Default with the county clerk. You can search for all notices of default within a time period in a county by going the county clerk’s website. For Alameda county, that would be