Saturday, May 15, 2021
Dear Your Overseas Dream Home Reader,
Stay calm and prosper!
Around the world, house prices are skyrocketing. As CNN reported, among the 37 wealthy countries that make up the OECD, prices rose by almost 7% last year—the fastest year-on-year growth in 20 years.
In the U.S., frenzied buyers are throwing cash offers at anything with four walls and running water, and brokers are struggling to secure listings…
Bidding wars in places like San Francisco are frequently pushing homes to $1 million over the list price…
Germany, New Zealand, the U.K., China…it’s the same story…
Prices are rising, supply is being squeezed, and demand is soaring.
The rapid price growth is made worse by the rising costs of building materials. For instance, in just one year, the price of lumber has increased 377%, and the cost to build a single family home has increased by $36,000—most of the cost falling on the homebuyer.
But while interest rates remain low and supply limited, there’s no sign that this boom will slow down in the short- or even medium-term.
My advice: stay calm and prosper.
In times like this our RETA edge is at its most valuable…
As the bull market rages and house prices skyrocket, we’re still locking in killer members-only discounts and buying at recession-level prices…
Two incredible RETA-only deals in the coming weeks will see us lock in potential gains of $118,800 and $142,000.
That’s that strength of our group buying power…
Plus, we’re finding the deals that others are missing. Not every market is booming. For instance, in blue-chip destinations in Italy, over-leveraged Airbnb owners, hit hard by a year of lost tourist revenue, are now dumping inventory onto the market. We’ve already seen this in Rome where word is central apartments have sold at 30% off.
Elsewhere in Europe, the macro trends that have seen rural real estate drop in value over the past few decades are still at play.
Depopulation…economic stagnation…Europe was always set to struggle out of the pandemic, especially countries like Italy and Spain, where the economies were already fragile.
Now is pure bonanza time for straight-up bargain hunting. If you’ve ever dreamt of owning a little bolthole, a country retreat…a village house…you can do it for as little as $50,000 in some corners of Europe.
Personally, 2020 was one of my biggest years yet for investing in real estate. Thanks to a “bailout” tax benefit I bought along with RETA members in a stunning beachfront community in Panama—locking in a discount of more than $60,000.
I also got in on a RETA only deal in Tulum on Mexico’s Riviera Maya. Our opportunity was to own spacious two-bed homes for just $149,000. Today, just a year later, the asking price for two-bed homes in Edena is $189,000. In fact, I’ve seen one broker advertising them for $199,000.
I bought a repossessed condo in Portugal’s Algarve for €410,000. And have since seen the same unit type listed for a whopping €830,000. And I did it with no money down and a mortgage of 1.1%. On the same scouting trip I picked up my current base here on Portugal’s Silver Coast from where I’m writing to you…
As I say, there’s always opportunity somewhere when you look everywhere…especially when you’re part of a group that gives you real buying power.
And we’re about to flex it once more…
Two Killer RETA Deals Coming Your Way
As real estate appreciation sweeps the world, we still have a window to buy at crazy low prices in markets set to explode.
For instance, I’m about to be launch another deal in Playa Caracol, Panama, where we can lock in discounts of $68,000 on luxury condos in a stunning beachside community.
Our get in price is just $144,200—including a $17,000 furniture pack.
And I figure these condos will be worth $263,000 five years after construction.
Playa Caracol is the closest beach to Panama City of its caliber on the Pacific Riviera. In fact, it’s by far the most beautiful beach (think white sands, blue water, swaying palm trees) within an hour of the city.
Our opportunity is in Playa Caracol’s newest neighborhood. A part of Caracol with the feel of a country club by the beach. It’s quiet and green, with excellent sporting and exercise facilities. There’s a gym, tennis, basketball and multi-purpose courts. Plus there’s also a Beach Club where you can unwind and enjoy a well-deserved smoothie or cocktail when you are too pooped for more activities.
Having these amenities on your doorstep is a big benefit to potential renters. As word gets out, and the community becomes even more established, demand will soar among Panama’s growing middle class and the legion of international executives and foreigners in Panama City.
I believe Caracol is going to be the premier destination on this coast.
RETA members stay tuned…
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Also set to launch imminently is our new RETA-only Cabo deal…
Cabo had been booming before the pandemic, with 4 million visitors in 2019, which was an 8.5% increase over the previous year. And 2018 was 7% busier than 2017. It’s still been busy during the pandemic. And once travel resumes in earnest, I expect Los Cabos to continue its upward trajectory.
Our get-in price here is killer…
We can own luxury condos from just $188,000. In Cabo that’s nearly unheard of. Similar condos right next door go for $320,000 and upward. That hands you an instant paper gain right from the outset.
Three years after delivery, I predict our condos will be worth $330,000. On top of that, I’m figuring they will on 14% gross yields annually.
The community where we can own is chic and lux, and set to include all the high-level amenities that renters look for in Cabo… Including an ocean-view infinity pool, complete with pool bar, and solarium, massage rooms, a well-equipped gym…
Plus, this development is perfectly located, just minutes away from beaches, a huge variety of restaurants, shopping, the famed Cabo San Lucas marina, nightlife, and other amenities.
Members stay tuned for more…
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Global Real Estate Boom 2021
Next month, I’m launching a special online event for RETA members.
I’ll be bringing you in-depth conversations and invaluable insights from contacts across my global beat. We’ll be digging down into the strongest opportunities emerging in the world of real estate right now…taking a look at the big trends we follow…and how to profit from the Global Real Estate Boom 2021.
I’ll be announcing dates very soon. Watch this space.
Wishing you good real estate investing,
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Ronan McMahon, Real Estate Trend Alert
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