Saturday, August 07, 2021
Dear Your Overseas Dream Home Reader,
Welcome to your Weekly Wrap-Up!
This week, members of Real Estate Trend Alert had a chance to own ocean-view condos from just $188,200 in a superb, amenity-rich community that is on a tranquil and private hillside…yet close to golden-sand beaches, a world-class marina, dining and entertainment, shopping, championship golf courses…
Deals in Los Cabos are few and far between. At our RETA-only price, they’re non-existent. For a similar condo in other high-end communities close by, list prices are well over $300,000.
So, it’s no surprise that this has been a smash hit of a deal!
People love Cabo. They love the warm and sunny climate, easy access from the U.S. and Canada, stunning natural beauty, and all the fun in the sun—not to mention potential for stellar profits thanks to a red-hot rental market and a supply squeeze.
I’m in on this deal. Even though I already own in Cabo. At our RETA-only price it was a total no-brainer.
I figure the condos we’re getting from $188,200 will be worth $330,000 three years after delivery. They’ll have incredible appeal for renters, command double-digit yields, and Cabo has a lot of good property managers to make that straightforward.
But huge potential profits aside, this is going to be an amazing place to spend time, too. I figure you could lock in gross rental yields of nearly 16% and still have plenty of time to enjoy your luxury condo and everything Cabo offers.
Congratulations if you got in!
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Cabo Costa will be all about luxury, comfort, and ocean views. Ours is an extremely high-end community in a secluded upscale residential. You can lounge in the community’s infinity pool with an ocean view…sit on your terrace with an ocean view…there’s a state-of-the-art gym planned, a co-working space…a solarium…massage rooms…
Then, right on your doorstep is a world of sun and sand, sea and surf, super-luxe hotels and day spas, fine dining, and some of the world’s best golf and fishing.
We locked down luxury two-bed, ocean-view condos in a community with a high level of amenities in an ideal location…
And we did it at a price that will shock the Cabo real estate scene…
I don’t think an opportunity like this will ever be repeated.
Again, congratulations if you got in. It’s a killer deal. And for RETA members who are interested but weren’t able to reserve a condo when the deal opened, be sure to register your interest and join the wait list.
Notes From Dublin…
This week, I was in Dublin, Ireland’s capital.
I was staying in my new favorite hotel in the city, the Dylan. Back in 2000, when I first lived in Dublin, the Victorian building the hotel is housed in was a nurses’ boarding house. I’m told it was damp, cold, and drafty. Today, it’s been transformed into a five-start boutique hotel.
It’s a microcosm of the transformation happening across the city. You see it in the hip, Art Deco-inspired cafes; in the Teslas drifting through the streets; and in the clean, glassy buildings of the Docklands, which house some of the biggest tech companies in the world.
Dublin’s prosperity began back in the mid-90s, when the “Celtic Tiger” kickstarted Ireland’s economy, and transform the country from one of the poorest to one of the richest in Western Europe…with one of the most expensive real estate markets.
I remember when £100,000 Irish pounds (about €127,000) could buy you a cottage in central Dublin. In the blink of an eye that became €500,000.
A nice home of 2,500 square feet close to the Dylan would set you back north of €2.2 million.
In 2011, when I scouted the city, you could buy foreclosed Georigian mansions for €800,000. I’d figure on €3.5 million today.
Like much of the world, the property market here is booming. Yet, there are also some familiar signs that not everyone is reaping the rewards.
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Across the city, “help wanted” signs populate the windows of cafes and bars.
The labor shortage is a global phenomenon, with many commentators blaming generous unemployment benefits during covid. But in Dublin there’s also a more straightforward reason: the workers simply aren’t here.
Many students and migrant workers who left the city during Ireland’s extended lockdowns, haven’t yet returned. The cost of renting is simply too high. And the hospitality industry’s low pay and hard working conditions aren’t enticing them back.
The exodus from Dublin has extended into every sector, with remote/hybrid workers moving out of Dublin and causing real estate prices to spike in commuter towns.
You might think the exodus would tank prices in the capital. But try again…values continue to roar.
If you got in on any of my Dublin recommendations, you’ve come out well.
For instance, in 2013 I recommended condos close to the city’s International Financial Services Centre (IFSC), and close to where you’ll now find tech companies including Twitter, Facebook, Google, and LinkedIn. They listed far below true value at €140,000.
Last I checked, a two-bed condo here lists for around €350,000 to €450,000. And you could easily charge €2,000 to €3,000 per month in rent. Combined with capital appreciation, had you got in then, you’d be sitting on gains of €300,000 to €400,000 today.
You can read more about my Dublin trip in yesterday’s mailing.
The Big Downside to This Stunning English Country Town
Meanwhile, just across the Irish Sea, my senior researcher Margaret Summerfield is scouting southern England for a new European base.
Surrounded by sleepy glades and meandering canals, the small city of Chichester has a lot to offer. Ancient cathedrals, Georgian and Victorian architecture, street markets, art galleries, and a symphony orchestra—even a motor circuit and aerodrome, as well as a vast national park with 100 miles of trails among hills, vales, and cliffs.
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In her own words, it’s an excellent place to live, and she’s found a lot to like in this center of arts and culture with such a historic and beautiful setting. As a bonus: it’s within easy reach of London and seaside beaches.
Of course, that convenience contributes to a major downside to Chichester. As Margaret says:
“Chichester is a popular second-home destination for the London market. Many owners are based in London or the commuter belt around it. And this pushes up prices.
“In fact, the average price over the last year according to Rightmove was £408,127 ($568,213). Detached (standalone) homes sold for an average £599,598 ($834,787).”
High prices are no surprise in a popular second-home market like this.
Margaret is not deterred yet, however. She’s still searching and promises to report back with any bargains she finds.
Wishing you good real estate investing,
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Ronan McMahon, Real Estate Trend Alert
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Your Comments and QuestionsJohn says: I don’t know foreign real estate markets, but it seems to me that in Turkey—and especially southern Turkey—real estate is at a reasonable price. Bordum, Anatalya, and a few other places are very nice at figures from 300,000 Turkish lira to a million or more ($35,000 to about $120,000). New build and a few used. Ronan says: Hi John. I agree. I hope to visit Turkey soon. It was one of the destinations I discussed with my team when we met in Dublin this week. The value looks amazing. But I’m not sure yet if there’s a profit angle. Hopefully, we’ll have someone on the ground there soon.
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