Mongolian Properties has been lucky to support investors from all over the world, who want to benefit from Mongolia's exciting economic story. We recently caught up with Dan Smith from the UK, who was an early investor in Ulaanbaatar, and who says he could be back for more.
What first led to you and your family to purchase property in Mongolia?
I like to read the blogs of the famous investor Jim Rogers who was talking up a commodity boom a decade ago. I was looking for opportunities to get into property opportunities fuelled by this boom. Mongolia was the most obvious choice as it had 15% growth rates at the time, a ready market to both the south and north for these mined products and an established democratic legal system in terms of property rights.
How easy did you find the acquisition process?
I have to say it is very easy. Mongolian Properties hold your hand all the way through the process and I think they do it so well because it comes from a genuine interest in their clients and their needs. The process doesn’t stop there either as their aftercare service is something akin to being part of the family.
Have you been pleased with the performance of your asset(s)?
Yes, I think I have been fortunate to have bought into the market early on, however this upward trend has a long way to travel as the country realises its vast potential.
Do you feel the legal and tax system is supportive of foreign owners?
I think the legal system is quite similar to the UK in that property rights reside with the owner. At the other extreme is a system like the Chinese one, where ultimately the state still owns the asset. Tax is currently at a low rate and I believe they have a bilateral tax agreement with the UK so you don’t have to pay it twice.
Did the economic downturn in Mongolia adversely affected you?
No. As I secured a long term let with a mining company who are in the country for the next ten years.
Would you consider purchasing further properties in the country?
Most definitely should the right opportunity arise. I am planning a trip out for 2018 to come and determine what’s on offer and see how UB has changed over the last 6 years since my last visit.
What advice would you give others considering acquiring property in Mongolia?
Do the research and go and see it for yourself. I have bought properties off plan before, but am now of the opinion that it is better to go and see the development and meet the developer in person before committing any funds. Mongolian Properties are very hospitable and will arrange an itinerary for you should you decide to go out there.