Saturday, July 17, 2021
Dear Your Overseas Dream Home Reader,
Welcome to your Weekly Wrap-Up!
This week, I shared a special scouting report from one of your fellow readers…a RETA member who recently visited Playa Caracol on Panama’s Riviera, where they got in on a members-only deal.
“The entry gate to Playa Caracol was welcoming and well staffed. The buildings immediately to the side appeared to be well maintained and the landscape crews were buzzing around in their golf carts tending to the foliage.
“We met Georgiana, who is super nice and passionate about her job and Playa as a whole. We not only toured El Pueblito, we toured all of Playa Caracol, including where Serenity will be built.
“Georgiana was nice enough to allow us to enter a nineth floor unit that is currently occupied. I found the building to be in great shape and well maintained. The unit itself was well appointed and the finishes were of good quality and something that this projects target market would demand.
“I was further impressed by the size of the balcony (on the unit I visited) as one could easily fit a small table and two to three chairs. Great for morning coffee or a digital nomad’s office.
“This project will be a force for the clients that it is marketing towards. I am very happy to add this to my real estate portfolio.”
You can read more of their report, as well input from more RETA members on our recent Playa Caracol deals here.
Jack, a member who bought in two of our RETA deals in Panama, says:
“Frankly, I was just blown away. The beach is spectacular. The views are gorgeous. The water is clean. The infrastructure is all in place, so it’s not an undeveloped site.
“They’ve made a ton of progress over the last several years, developing out the project in a responsible way. They have a very strong vision in terms of a master-planned community that I think is going to play out very nicely.”
In all the years I’ve brought deals to our group…and in the nearly two decades I’ve been investing in real estate around the world, this has got to be one of the most special…for all the reasons Jack mentioned but also the low, low price points—available to RETA members only—not to mention the potential for capital appreciation and rental income.
In our latest deal members could own luxury two-bed condos starting from just $144,200 in Serenity. The furniture pack alone is valued at $17,000. Factor that in and our price is more like $127,200 for a luxury condo.
And in our Pueblito deal before that RETA members had a start price of just $112,000. With furniture packs valued at $15,000, the price is more like $97,000. And I predict these condo will be worth $250,000 five years after delivery, meaning the potential for profit is a truly enormous $138,000.
Both deals are underpinned by incredible member-only discounts. This is thanks to a Panamanian government program for promoting tourism—I call it “The Great Bailout.”
They effectively foot the bill for a big part of the construction in a development like Playa Caracol. It’s a huge incentive for the developer we work with—and I figured out how to get those savings passed on to RETA members.
However, this initiative could be disappearing soon…
I checked in with the developer in Playa Caracol, Alfredo Aleman, on a video conference call this week. He updated me on the progress of construction, which is well along, and shared a bird’s-eye view of the entire community—it really showcases exactly why there is nothing like Caracol out there…and why once tourism takes off in Panama, nothing like it will be available ever again.
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Alfredo is creating something truly special in Playa Caracol…in a very special place. This is the closest, nicest beach to Panama City—white sands fringed with palm trees, with emerald, jungle-covered mountains as the backdrop. A tropical paradise.
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But we’re not done yet in Playa Caracol…
What could be the last RETA-deal there that allows our group to take advantage of “The Great Bailout” is in the works.
So, if you’ve been interested in investing there but haven’t pulled the trigger—or didn’t move fast enough when past deals opened—keep an eye out in the next couple of months.
Worth noting members are already sitting on gains: In our earliest opportunities in Playa Caracol, RETA members are already seeing gains. in 2017 members could buy from $199,000 in The Palms at Caracol and by August 2019 a similar condo farther from the beach listed for $299,000—that’s a paper gain of $100,000 in two short years.
Live in a Palace in France
RETA senior researcher Margaret Summerfield continues her exploration of Menton, on the French Riviera, a region which is said to have the best weather in France. And this town in particular, thanks to its unique microclimate, has the best climate of this whole stretch of coast.
Though not as well-known as other beach resorts, Menton has always drawn plenty of visitors, who escape harsh winter weather back home for its warmer climes.
During the Belle Epoque from 1880 to 1914, it was the “in” destination for royalty, aristocrats, and the ultra-wealthy from around Europe. And these types of people couldn’t stay just anywhere.
As Margaret explains , the best architects were brought in to create grand “palace hotels” with opulent rooms and suites…sea-view terraces…manicured gardens…and the like.
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Twenty-one palace hotels in all were built, but only four remain operational. The rest have been converted into luxury residences.
As you might expect, apartments can be quite pricey. But Margaret found one for sale at €190,000. You can get her full report here.
Big Changes in Costa Rica’s Residency Program
Costa Rica wants to bring in more investors, retirees, and expats. And to that end, the government just announced a new law to be put before the legislature with some quite attractive incentives.
Nothing is set in stone yet. But here is some of what has been proposed :
- A reduction in the minimum capital investment to secure residency through investment from $200,000 to $150,000.
- 100% tax exemption for the importation of household goods and vehicles..
- 20% tax exemption for the transfer of property.
- A three-year tax exemption for startup businesses, with plans calling to make it easier for self-employed people or those with a small business, as well as part-time residents and digital nomads, to qualify for residency.
As I said, nothing is final yet. But to boost the economy post-covid, the government seems quite motivated to get this done.
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Costa Rica has always been a bright spot on RETA’s beat… and if this new program comes to fruition, it will be even brighter.
In March, RETA members locked down tropical villas, each with a pool, and within easy reach of pristine Pacific beaches from just $218,000.
Our opportunity was in the Southern Zone, a region of unspoiled beaches, wildlife-filled rain forest, an amazing dining scene…and the potential for significant return on our investment, thanks to a critical shortage of rentals in the area.
I figure two or three years after delivery these three-bed villas will bring in a 13% gross yield, or $32,000 a year in income as rentals.
Right now, I’m working on a new members-only deal on ocean-view lots in right where we can expect a surge of new demand once travel returns to full force.
I expect to have all the details for RETA members in the coming months.
Wishing you good real estate investing,
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Ronan McMahon, Real Estate Trend Alert
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Your Comments and QuestionsAdam says: Hi Ronan, Thanks for your latest video with Alfredo on Playa Caracol. I have bought a two-bedroom in the Pueblito development and it was so good to see the updated renders on the project and also to see the whole development master plan. If these could be forwarded on to us from Alfredo, that would be great. Also, I wanted to ask if a good-sized swim up bar was going to be part of the Pueblito development, as I think this would add another element to make it an exclusive destination? It’s always something I look for when booking a resort. Alfredo, it’s always a pleasure to see your enthusiasm with the project and your vision is amazing. Ronan, looking forward to your updates on the development and videos of progression when you visit Playa Caracol soon. Ronan says: Hi Adam. I’ll ask Alfredo’s team to forward you the renders and master-plan. Pueblito has its own rooftop bar, as well as a beachfront pool—highly desirable assets for renters. Plus, these condos come enrolled in a five-year rental program—a requirement of “the Great Bailout” and a huge benefit. It means you have onsite rental management. They handle bookings, the renters, even the cleaning…you just sit back and watch the income roll in. For those who hasn’t yet seen my Zoom conversation with Alfredo, where we discuss the latest plans for the community, you can watch it here.
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