Thursday, May 13, 2021
Dear Your Overseas Dream Home Reader,
The U.S. housing market has been quite dramatic recently, to say the least…
News out of San Francisco’s Bay Area is reporting of homes selling for $1 million over the list price. Potential buyers are engaging in bidding wars—even at that level.
Nationwide figures point to a housing boom, with more existing homes sold in 2020 than in any year since 2006. Homes are selling more quickly and for higher prices.
In California, prices have reached all-time highs, with single-family homes averaging $699,000 and condos and townhomes average $530,000. We’re also seeing rising prices in places like Texas, Idaho, Arizona, and Florida as people, many of whom are now working from home, seek out lower cost of living locales.
Prices have jumped by an average of 11.3% year-over-year—with some states seeing prices rise as much as 25%.
Some industry watchers say it’s a bubble set to burst…
Wearing an investor hat, it’s difficult to see much sustainable upside in most markets in North America. That’s why I look to invest in places where I can see a decade plus of upward growth. Most U.S. and Canadian markets are highly leveraged and expensive relative to incomes, very susceptible to interest rates rising or employment falling.
When you look overseas, you open yourself to bigger opportunities. Much bigger potential gains.
Thirteen years of RETA deals go a long way toward proving that…you can double your money in a few short years, see rapid six-figures gains…and generate rental yields ranging anywhere from 10% to 20%…
For instance, over the past year, while the U.S. housing prices soared to dangerous new heights, I, along with members of Real Estate Trend Alert (RETA), took advantage of incredible buying moments in some of the most attractive destinations in the world.
To name a few:
- In Tulum on the Riviera Maya, we got in on an opportunity to own spacious two-bed homes for just $149,000. Today the asking price for two-bed homes in Edena is $189,000. In fact, I’ve seen one broker advertising them for $199,000. Those are some rapid paper gains…
- In Spain, RETA members have locked in 50% discounts on stunning condos in one of the most sought-after locations on the Costa del Sol. The bank selling the condos wanted a fast sale. The original price was set with a 27% discount. Then COVID happened and they cut another 23% off the price. What was a killer deal became an incredible deal. The start price of €325,000 was slashed to €164,000.
- In Panama we repeatedly took advantage of a major tax incentive to lock down best-in-class real estate, steps from the nicest, closest white-sand beach to Panama City—saving over $60,000 each. I’m talking spacious, luxury two-bed condos…a short stroll from the beach…overlooking the pool in verdant gardens…all for $137,000.
- And on Portugal’s Algarve, I uncovered an opportunity to buy repossessed homes in one of the region’s most exclusive communities. I personally bought for €410,000 with no money down and a mortgage of 1.1%. And I’ve since seen a listing for the exact same unit type at €830,000.
My point is this: better to look for markets with huge upside and lower risk. Markets where even in times of global crisis, we can still do well.
Most folks simply don’t realize how much money they’re leaving on the table…and how many opportunities they’re passing up…by focusing on the wrong place and paying whatever the market demands.
At RETA, we ONLY focus on markets with strong upside, and we ONLY consider deals that can surpass anything else available in terms of quality and value.
In fact, if you’re a member, you can access multiple opportunities that meet these criteria right now…
Just follow this link to the Current Deals section of the RETA website and start browsing.
Remember, you can inquire about availability by following the link inside each report.
Wishing you good real estate investing,
Ronan McMahon, Real Estate Trend Alert
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