Why I’m Buying in Cabo…Again A Shed for $89,885? Paper Gains of Over $60,000 in Our Marina Deal
Saturday, July 31, 2021
Dear Your Overseas Dream Home Reader,
Welcome to your Weekly Wrap-Up!
We have an absolutely killer RETA deal in Los Cabos opening this Thursday, August 5, at 1 p.m. ET And you can get in on the action…
I already own in Cabo, but I’m buying in our latest deal because I can’t pass up such a classic RETA-only opportunity…
- We’re getting ocean-view, luxury two-bedroom condos from just $188,200. (This is a steal when you consider that a similar two-bedroom condo in a community across the road is priced at $326,000…and another two-bedroom unit set farther back from the ocean lists for $339,000.)
- I’m conservatively predicting gains of $141,800 just three years after delivery and gross rental yields of 16%, renting short-term—or as much as 14% long-term.
- This is a brand-new community nestled on a quiet road in the foothills, and all the condos have ocean views. The onsite amenities are top notch, with an infinity pool and expansive pool deck with ocean view, a wet bar, massage rooms, a gym, a co-working space.
- It’s ideally located. You’re just 10 minutes’ drive to the famed Cabo San Lucas marina with its restaurants, shopping, night clubs, and more, as well as Medano Beach. It’s a straight run of 25 minutes out the modern highway to the art galleries and gourmet dining of San José del Cabo.
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This is a stunning deal, in a place where new development is severely capped due to strict permitting.
Without deep-rooted connections and a lot of leg work, research and grit it wouldn’t have come together. It was the deal that almost didn’t happen.
But it’s finally here…
And at just $188,200, our price is outrageous for what we’re getting.
When word gets out in the Cabo real estate scene, I expect an explosion of disbelief and outrage. Prices for luxury condos are normally way over $300,000…
Our price is unmatched because of RETA’s group buying power. We get the true off-market deals. We have the best connections…
So, I expect these condos to be snapped up very quickly. And like I say, I’ll be buying alongside members.
If our track record in Cabo is any indication, my prediction of gains of $141,800 just three years after delivery might even be conservative:
- The last Cabo deal I participated in was in 2015. RETA members had the opportunity to lock down a two-bed two-bath ocean view condo in Copala for $336,015. In September 2019, developer’s price list showed the last similar condo listing at $630,088.
- In the same community, a RETA member bought a luxury house in 2015 for $374,786. In April 2020 a similar house a few doors down sold for $675,000.
- More recently, in August 2018, I brought RETA members a deal on two-bed two-bath condos in Mavila from $259,800. In April 2021 I saw a local broker on Instagram had posted a listing for 2-bed 2-bath Mavila condos “from the mid $300,000s.”
Like I say, I’m buying because our deal is so incredibly rare and our price is such a no brainer…from just $188,200 for a two-bed ocean-view condo. Penthouses are ours from just $249,800. In Cabo…where the closest comparisons are well over $300,000.
The deal opens on Thursday, August 5, at 1 p.m. ET.
If you’re a RETA member, you can get all the details in my Special Deal Briefing, right here.
Good News Out of the Yucatán
Earlier this month, we launched a killer RETA-only deal…
It was an opportunity to own in a marina resort in Progreso, the closest beach town to the colonial city of Mérida on Mexico’s Yucatan Peninsula.
This marina community is a true landmark…
Large full-service marina with quick access to the Gulf…sailing academy…spa…private beach with beach club…rooftop pool…award-winning architectural design…planned gourmet food hall, wine store, and grocery store…
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The amenities here are just unbelievable. There’s nothing like it on this stretch of coast, which is popular with well-to-do families from Mérida, as well snowbirds and expats from the U.S. and Canada. (You can bet they’ll be clamoring to rent in this community.)
The RETA-only get-in price here was an amazing $209,800 for two-bed, two-bath condos with spacious terraces and water views.
I reckon these condos will be worth $380,000 five years after delivery—an incredible gain of $171,800.
And we’re well on our way there…
Check out this ad from the developer that came out a few days ago:
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The retail price, in dollars, is $270,543…
That’s for condos very similar to what we locked down. But our pricing was just $209,800. Giving us a $60,000 uplift…
That’s the strength of RETA and our incredible group buying power…
We get prices no one else sees, and we lock down the best available inventory before anyone else even gets a look in.
Our condos are ocean-view, in a truly one-of-a-kind luxury community…and just a short drive from one of Latin America’s most beautiful and vibrant colonial cities, Mérida, known for sparkling clean avenues and leafy cobbled plazas, art-filled galleries…live music…amazing restaurants…
It’s a booming city, buzzing with innovation, a major hub of business where the wealthy will fall over themselves to stay in our condos or buy them outright if we ever choose to sell.
In fact, I expect potential annual rental income of $22,800 once the community is up and running—that’s a gross yield of nearly 11%.
Plus, you have the snowbirds and expat crowds who flock to this beach area as well—another huge market for rentals and potential buyers.
There’s never been anything like this resort marina this close Mérida, and it’s doubtful there ever will be again.
Congratulation to all those who got in.
A Shed for $89,885?
My senior researcher Margaret Summerfield has been searching for a new home in Europe. After exploring the French Riviera, she’s on the South Coast of England, where she lived previously for almost 17 years.
So far, she’s found some very interesting seaside properties…including these beach huts that sell for as much as $89,885…
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Aside from garden sheds on the sand selling for £45,000 to £65,000 ($62,228 to $89,885), she came across vacation trailer parks with what are basically fancier sheds with pricing starting at £195,000 ($269,655)—that’s for a 50-year lease arrangement for only the trailer, not the land underneath.
Incredible when you consider what RETA members have been able to own for much less in warm weather locales like the Algarve, Costa del Sol, and Riviera Maya.
But par for the course in a popular beach town just two hours from London, 90 minutes by train.
As Margaret reports, regular homes are quite pricey too:
“A four-bed beachfront home in West Wittering recently sold with a list price of £2.5 million ($3.5 million). A smaller five bed beachfront home in Bracklesham sold—its list price was £1.75 million ($2.4 million).
“Even more modest homes don’t come cheap.
“A two-bed condo in Bracklesham in a beachfront building, with 778 square feet of living space, is listed at £285,000 ($393,043). The living area has ocean views. The condo block is stairs-only, no elevator, there are no shared amenities and the block is frankly quite shabby. The condo and complex fees total around £3,200 ($4,413) a year. The condo is leasehold, too.
“If you move away from the beach your budget will go a little further. Within a five-minute walk of the beach, you can buy a three-bed single family home for £410,000 ($565,431). It’s got an updated interior and is move in ready. Another single-family home with four bedrooms is a little closer to the beach, only a three-minute walk, but needs a makeover. It just sold (it was listed for £485,000).”
You can read the full story here.
Wishing you good real estate investing,
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Ronan McMahon, Real Estate Trend Alert