Saturday, November 13, 2021
Dear Your Overseas Dream Home Reader,
Last Tuesday I arrived in Cabo San Lucas in Mexico’s Baja California Sur…
For a number of years now, this is where I’ve spent my winters. And every time I return I’m blown away by Los Cabos’ natural beauty.
The views here are breath-taking. Turquoise waters crash against jagged cliffs and protruding rock faces that rise up from the sea.
Rolling desert hills stretch across the horizon, scattered with cacti and brightly-colored flowers.
Small islands dot the ocean offshore from vast stretches of golden-sand beaches.
Coming here never gets old…
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And it has everything I want from a part-time base: good weather all the time, which for me means no need for air con, no need for heating. I like being close to the ocean. Having great options for golf. And having a vibrant town with good food and reasonable services is a big plus.
I don’t like hassle or excessive travel, which in my line of work is a big deal. So I need to be fairly close to an international airport.
Most importantly, I want a part-time base that can deliver strong rental income when I’m not using it. Which is exactly what I have with my Copala condo in the 5-star Quivira resort.
For the past six months I’ve been renting it. Condos like this rent for $2,500 per month long-term. I charged a bit less, as my tenant was introduced to me through a neighbor and friend and I was willing to charge less for no headaches. (I bought the condo in a Real Estate Trend Alert members-only deal in 2015. The RETA-only price at the time was $336,156. Now, along with RETA members I’m sitting on six-figure gains.)
The thing is, supply is tight in Cabo and demand is going through the roof. Before my return, my tenant was begging to extend their stay because they couldn’t find anything else, almost at any price. Finally they did and they’ve moved into Mavila, a community in the same resort.
Medium to bigger family homes in Cabo (and I’m certainly not talking about beachfront mansions) rent long-term right now even in the range of $4,000 to $6,000 per month. Spacious three- and four-bedroom homes RETA members bought for in the low $400,000s in Copala today could rent for $4,000 a month and are worth $400,000 more than they paid.
Signs of a boom in Cabo are everywhere. Literally, right on landing last week I got a taste just how strong the Cabo market is performing. The international terminal was just lined with planes queuing to unload passengers, with United, Alaska, American, Spirit, Delta, and Air Canada all on the runway.
Then, driving home, there was traffic like I never saw before in Cabo. I don’t mean it was heavy relative to Covid times, I mean it was heavy relative to any time, ever!
To date, Los Cabos is Mexico’s leading destination in post-pandemic tourism recovery with visitation recovery at nearly 20% higher than anywhere else. In fact, international arrivals to Cabo in September was not only 40% higher than the same month in 2019, but marked the strongest September in Cabo’s history.
Millions of folks can work from anywhere and Cabo is already flooding with professionals, young and old, single and with families, all with laptops in hand looking for rentals…looking to buy…
At the same time as this surge in people coming it’s getting easier to do that with new air routes announced. For instance, direct flights to Cabo from Las Vegas and New York. And bear in mind, Cabo is just a drive away from 24 U.S. cities. (I have neighbors in Cabo who drive from Ontario and Alberta in Canada.)
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This all bodes very well for the RETA deals we’ve had in Cabo, including out recent Cabo Costa deal, which I got in on with fellow members. RETA members locked down ocean-view condos in an incredible amenity-rich community in Cabo from just $188,200. And this Thursday, I’m going to Cabo Costa’s retain launch where prices will be in the region of $60,000…$70,000…and more up on RETA-only pricing. In much of the inventory we’re looking at a six-figure jump.
As an investor, I only ever want to put money into deals that—even if everything went to hell—I’d still do okay. And if things turn out as I expect, I’m sitting on huge gains. The best way I know to do that is buy at an incredibly low price…a RETA-only price. Thus locking in enormous gains and yield potential from the outset.
(To be sure you get in on the next deal I bring to my RETA group, you must be a member. Join now and you’ll be ready to go when a deal that suits you comes up. All the details for joining are here.)
And by buying in an internationalized destination like Cabo, which caters to a wide variety of markets, you not only protect yourself if the global market dips but you also benefit from its extraordinary transformation and growth.
Retired Emperors on the Adriatic
While I’m settling back into life in Mexico, one of my team members, Paul O’Sullivan, is still on the road in Europe. You’ll remember he hit up Italy back in September and he’s now exploring Croatia.
Croatia came on my radar in the early 2000s as an emerging vacation destination. I flew to Trieste on the Adriatic coast of northern Italy and then drove south along the entire Croatian coast.
I returned in 2005 to scout for real estate opportunity…and again in 2006. This was the great Croatia buying moment. On every trip, Split, and the Island of Hvar, a short boat ride away, were my favorite spots.
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A lot has changed since my last visit to Croatia though. Not only is the country now criss-crossed by modern highways, but Paul can get internet everywhere and send me instantaneous updates and videos via WhatsApp. When I visited—and I can hardly remember it now—I guess I made use of a rudimentary digital camera.
This week Paul sent me his take on Split, Croatia’s second largest city, and perhaps the most important hub town on this side of the Adriatic. You can catch up on what he uncovered here.
Gearing up for “Mission France”
Earlier this week, I sent you a couple of notes about one of my favorite parts of France, the Languedoc. Although in the famed South of France, it’s often overlooked in favor of more glitzy towns of Cannes, Antibes, and Saint-Tropez.
This is the “other” South of France where expats and second home owners can find everything that makes the French Riviera so special, while avoiding the high cost.
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The Languedoc has long been popular with French second-home owners, and budget conscious British expats discovered the villages of the Languedoc a while back. However, now, due to Brexit, their residency options are limited, and motivated sellers are emerging. (You can read more about the “Brexit Effect” in the South of France here.)
During some initial research on the Brexit Effect in the south of France, I came across some promising country and village properties in the Languedoc. You’ll find a taste of what’s available right now in this overlooked region here.
I’m planning to get my scouts on the ground in France soon for “Mission France.” When my guys went to Italy in September they found zero British buyers but a few motivated British sellers.
In France, I suspect this trend of British sellers will be at its strongest. And I want us to be there to get the best deals. Some of France’s most beautiful regions like Dordogne, Charente, and the Languedoc are hotbeds of British expats… Many of whom are now looking for a quick exit.
Stay tuned…
Follow My Adventures
I share all the best of my travel, scouting trips, and international real estate discoveries with you right here in Your Overseas Dream Home e-letter.
But when I’m on the road, I also share photos and videos to my Instagram account. It started out as a way to keep friends and family in the loop about where I was in the world. And I still use it for that…but I also use it to keep e-letter readers like yourself, and members of my Real Estate Trend Alert group , up to date on what I’m up to.
It’s a place for some of the fun stuff I get up to while scouting the world’s best real estate opportunities…
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And for sharing cool pics of the places I’m scouting…
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If you’re on Instagram, find me and give me a follow. My handle is ronan_mcmahon…or you can find me here.
Wishing you good real estate investing,
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Ronan McMahon, Real Estate Trend Alert
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Your Comments and QuestionsThomas says: I was pleased to see recently that you have recognized the attractions of Beziers and its surrounding area. But why are you describing properties that cost $200,000 and $300,000? Béziers has quality properties that cost as little as $100,000. We recently bought a three-bedroom, two-bath apartment in the historic center that cost only €125,000. There is no need for a car, as everything one needs is in close proximity: four supermarkets, indoor and outdoor markets, numerous restaurants. It is a delightful and lively place, close to the beach, but also tranquil. It might also be a profitable place for renting, as there are many tourists in the summer, but few quality hotels. Ronan says: Hi Thomas. In my mailing on properties in the Languedoc, France, which I sent last week, I was focusing on homes that I think have the strongest profit potential. Indeed, you’re correct that you can buy a quality homes there for $100,000 or even less, but you can target a wider group of renters with a larger home that offers a unique feature such as a pool or big garden. Having said that, when I send my team on “Mission France” in the coming months, I’ll be asking them to search for properties across a spectrum of price ranges, with will include homes with profit potential as well as super cheap fixer-uppers.
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