Thursday, April 15, 2021
Dear Your Overseas Dream Home Reader,
I’ve heard you. Now, let’s make a plan…
Last weekend I asked you where should I and my team scout real estate, and yesterday I gave you a taste of the hundreds of answers from your fellow readers of Your Overseas Dream Home.
Your response was phenomenal. I reckon from what you’re saying that you too sense the big buying moment is here.
And before the month is out, I’ll have my boots on the ground in your top requested destination.
But before I reveal where that is…
Many of you asked for destinations where we’ll find the strongest investments…others are looking for that special dream home on a budget…
It’s all on the slate. I’ll be instructing my team over the coming days. It’s game on as travel bounces back.
I got to say, you guys have a BIG bucket list. India…the Ukraine…Tasmania…South Africa…the ski fields of Japan…Turkey…Madagascar…
Good news if you are among the folks who want a home in England. My senior researcher, Margaret Summerfield, is there right now making plans to scout the south coast.
For those of you who want an Irish pub, no problem, I’m planning on making a return scouting trip to Ireland this summer.
|
|
Scotland? If you can handle the weather, I have a team member there keeping an eye on the market. He’s already dug out some low-priced island and highland properties.
As for Eastern Europe…my plan is to focus on Western Europe first, find deals in Portugal, Italy, Greece…
Then, if time allows, either I or one of my guys will head to Poland and Slovenia. Both are on my Eastern Europe shortlist. A big idea I’ve been working on for some time—the convergence of central Europe…
Austria and Central Germany have some of the highest real estate prices in the world. Yields in a place like Munich are miserable, think 1%. Hop a border or two though, and you have Slovenia and Poland…
Culturally and educationally these countries are broadly similar. And it’s only in the last few decades since the Iron Curtain fell that market economies have developed. I’m predicting a major convergence between parts of Slovenia and Poland and Austria and Germany.
But let’s look at the top destinations you picked for my team and I…the “must visit” places.
The “Must Scout” Destinations
Your number one requested country for me to scout? Portugal. The Algarve…the north…all over.
Great minds think alike. I already had my ticket booked. After scouting the Riviera Maya next week, I’m flying direct from Cancún to Lisbon.
I’ve yet to make a detailed scouting itinerary but I’ll start off in my base on the Silver Coast, north of Lisbon. (You’ll remember I bought a property here last year.)
I’ll definitely be back on the Algarve where the deals are still coming. (I’m working on something interesting right now for RETA members. I’ll get back to the historic university town of Coimbra and my team are keen for me to check out the medieval walled town of Evora, two hours from Lisbon.
|
|
Portugal offers villages and rural retreats every bit as beautiful as parts of Spain and Italy. You’ll find a lot of Atlantic coastline too and I still have spots to explore…
One reader email I picked out:
“My husband and I joined your site a few months ago and are so glad we did! We have decided on Portugal…at first we thought Cascais was perfect, it checked all the boxes. But, as we dug a little deeper, we realized that it seems to have reached the “peak of its glory,” and prices! As we dug a little deeper (never having been to Portugal), we discovered Setúbal, which appears to us—even with our inexperience—to be the up and coming “next Cascais.” The location from Lisbon is nearly identical, the same types of beaches, with major medical care facilities within the town, and a very reasonable distance to Lisbon for serious medical needs. With basically half the population as Cascais, it provides almost all of the same amenities and housing is half the cost. Would you be so kind as to shine a light on Setúbal?”
I’ll certainly try. From what I know, Setúbal was an historic center for the fishing industry and much more of a port town than fashionable Cascais. It’s got an industrial legacy but a lot of Portuguese head that direction to get to the beaches of the national park right next door. Here’s an interesting guide for our fellow readers.
|
|
If it’s an investment you are looking for, then the Algarve and it’s red-hot rental season is still unrivalled champion in Portugal. And time is running out if you’re interested in the Portugal Golden Visa, which you can get through investing in real estate, typically of $500,000, though in some parts of the country, including the Algarve, a lower amount can be considered for eligibility. The deadline is now early in 2022, so this summer is the time to act!
Italy was a close runner up to Portugal in the list of “where Ronan and his team should go.”
For some time now I have had two seasoned team members lined up to hit Italy as soon as travel restrictions there lift. The plan is to cover twice the ground by having two guys go and travel separately because—as your suggestions of where to scout show—there isn’t just one region of Italy worth shining a light on…the country offers bargains and alluring historic homes from top to bottom…
Even more so now that the pandemic has rolled over the country’s already struggling economy.
And I was pleased to see many of you haven’t forgotten my plan to find an entire Italian village or town in need of investment and regeneration. You like this idea and want to be a part of it.
I like it too. Consider it part of our 2021 scouting plan!
|
|
Spain was high on the list, mainly the south. I’ve been in touch with my contacts there to see if we can find another outrageously good deal like the 50% off luxury condos RETA members could get in August of last year. Full details of any deals will be in Real Estate Trend Alert.
Greece was also big on your list…
I’ve scouted real estate in Greece on several occasions and traveled through the islands. I don’t consider it a particularly fertile hunting ground for real estate investors. The economy is so weak, rental income and capital gains are a very easy target for an insatiable taxman.
Having said that, if you are interested in a Golden Visa, then things get very interesting…
You’ll find some similarities between the Portugal’s Golden Visa and that of Greece. For instance, each of them allows you to travel within Europe’s Schengen Zone countries without the need for an additional visa. But they also diverge in some significant ways.
The biggest drawback to Greece’s Golden Visa is that if you’re looking for a path to European citizenship, you’re required to live in Greece for 183 days a year for seven years.
However, if you’re not seeking citizenship, Greece is a great option. With a minimum real estate investment of just €250,000 it’s the lowest investment threshold of any of Europe’s Golden Visas. Plus, there are no restrictions on what kind of real estate you can buy.
|
|
Unlike its citizenship requirements, if it’s just residency you want there is no minimum number of days you’re required to be there. Another huge benefit of Greece’s program is that it offers much more flexible terms for family. Once you meet the minimum investment requirements, your spouse, all children under the age of 21, as well as parents and parents-in-law can be added to the application.
While this residency does restrict you from working in Greece, you are still free to rent out your property as you please.
The €250,000+ price range would get you a stunning property, definitely an ocean view and your pick of many restored village homes or modern apartments. And you have 227 inhabited islands to choose from, as well as the mainland.
Away from Europe, countries that came up over and over included English-speaking Belize. My own top destination for real estate in Belize is the Placencia Peninsula.
This is one of the final Caribbean frontiers. It’s a pocket of paradise where buying real estate can make you lots of money. It’s a simple supply and demand story. There is limited supply and growing demand…
|
|
The Placencia peninsula is 16-miles long, a spit of land running north to south and only 100 feet wide at its narrowest point. On the east side you have stunning white-sand beaches backed by palm trees that sway in the breeze. On the west side is a protected lagoon, a nature- and water-lovers playground.
There’s a classic Path of Progress element to the growth of Placencia. What was a dirt road down the peninsula was paved around 2011…you’ll get high-speed internet and good water infrastructure…
Land parcels in Placencia are pretty small, which is good news. It means the place won’t lose its laidback, chilled out character. While you have all the amenities you could want, it’s hard to imagine how anyone could ever build huge box stores or massive resorts here.
Placencia is set to stay boutique.
As you know, whenever a screaming deal crosses my desk, I pass it on to you. They are getting much harder to find in Placencia but I’m looking…I’m also talking to one my team about a trip.
On the subject of screaming deals…
For the many of you interested in Uruguay, I have a RETA-only deal coming up there in a matter of days. The opportunity in a nutshell is to lock down a lot close to the beach ahead of a Path of Progress from around $34,000 and lock in big potential gains.
If you’re a RETA member, all you need to do is watch out for your monthly issue. I’ll have all the details there.
That neatly brings us to investment…
Strong investments in Mexico and Central America
A lot of you guys spoke about Panama, including a bunch of you who got in our recent Pueblito deal at Playa Caracol (Congratulations if you did!)
I personally bought a condo in Playa Caracol last November, a unique beachfront community on the nicest beach within an hour of Panama City. Thanks to what I call “the Great Bailout” we’ve locked in big savings on fully furnished condos and I’m predicting six figure gains five years after delivery.
I’m working on more deals to take advantage of the Great Bailout while it lasts…and Panama’s boom, the Pacific Riviera’s Path of Progress, and the growth of Panama City as an international hub.
Pay close attention to your RETA alerts if a strong investment play and a stunning property in Panama sounds good.
As I mentioned, I’ll be on the Riviera Maya and in Tulum next week. I’m putting the finishing touches on a truly incredible deal there. (More on Tulum in a moment…)
Many of you were interested in other parts of Mexico too…Puerto Vallarta, Merida, and Cabo…all places where I expect to bring RETA members serious off market opportunities in the near future.
You can read the notes from my recent Puerto Vallarta scouting trip here.
As for “the Tulum of Baja” as some folks are starting to call it…
Friday week, I’ll once again head north from my base here in Cabo to the town of Todos Santos. One of your fellow readers summed up the reasons well:
“The region is beautiful, Todos Santos is a Pueblo Magico, there is a four-lane highway connecting it to Los Cabos, and by all accounts it is a rapidly developing area.”
I agree. I see serious opportunity here. I’ve been visiting Todos Santos from my base in Cabo for a few years. It’s a very different kind of place…you won’t find big luxury resorts here, instead it’s boutique.
|
|
The town is just back from the coast, picture 10 miles or so of beaches studded with hills and lookout points. Whales come so close to shore you can easily see them from the bluffs. Some beaches are best for swimming, others for surfing, and still more for simply having the ocean to yourself for a while.
In the last decade major improvements to the highway have put Todos Santos within reach of a much bigger number of the wealthy West Coast set who love its artsy atmosphere and the natural beauty all around. The town is making the pages of Vogue, Conde Nast, and Jetsetter. Celebrities get married here. They take beach vacations here. Take a stroll down the town’s cobbled lanes and you’ll find art galleries, boutique stores, and farm-to-table restaurants. You can go on a yoga retreat, buy a kaftan or a dreamcatcher, or go surfing. That last one’s important, the beaches here are among the best surfing spots in Baja.
There is much in Todos Santos to remind you of Tulum, the Riviera Maya beach town where RETA members have had some of our best deals. It’s got a similar hippy chic vibe, a focus on wellness. It’s boutique, small-scale versus big all-inclusives.
I see a couple of plays here and I’ll be digging deeper on them…
Why Not This Place?
Some of you wondered aloud about the rest of the world and asked straight out why certain places are not on my Real Estate Trend Alert beat…
For instance, Thailand, Malaysia and other parts of Southeast Asia aren’t high on my scouting list. I have been there, and yes, I’ve found opportunity. But not much, certainly nothing close to the opportunity for profit closer to home in Mexico and Panama for instance…
Restrictions around foreign ownership are a big reason. But one place I will continue to research and scout, if time allows, is the university city of Chiang Mai in northern Thailand, where my contacts from time to time send me flash deals. (If I consider them worthy of passing on to RETA members they appear in Real Estate Trend Alert.)
For those of you interested in the Caribbean’s many islands, my take is this: There is some value to be had in some places for sure, but for years my team and I have scoured the Caribbean for opportunity and time and time again it just never comes close to the opportunity available to us in Tulum and along the Riviera Maya…
This 80-mile stretch of Mexican coast is the “convenient Caribbean.”
There are places in the world that already attract millions of people for their climate, lower costs, and quality of life. The most successful are easy to get to.
The Riviera Maya is now firmly among the world’s most inherently desirable destinations. It has it all…perfect weather, world-class beaches, fine dining, and almost every activity you can imagine. That’s just for vacationers.
The increasing number of longer-stay folks have every amenity they need as well, including international schools for their kids, gourmet supermarkets, and so on.
And it’s so easy to get there. The airlift is phenomenal. Cancún Airport is unrecognizable from when I first began visiting.
That translates to one of the strongest markets on the RETA beat for rentals. Peak season is getting longer and longer as more tourists visit from across the globe. Premium season—the holidays—sees the best rentals snapped up months in advance.
The bounce back from the last year of travel restrictions has started. Now a new army of work-from-anywhere folks is heading to the Riviera Maya and Tulum to live for weeks, months…full time.
|
|
For anyone in the U.S. or Canada flying to Cancún and spending time on the Riviera Maya is akin to a domestic flight.
All this means that with the right type of property in the right location on the Riviera Maya you can get fantastic rental returns.
And RETA members are already sitting on gains. For instance, in October 2017 we had our Tao Tulum where I bought along with RETA members. The RETA-only start price was from $154,500 and I sold recently for $225,000. The RETA-only price for premium condos there was $230,556 and two years later I saw one listing for $449,000. A whopping $218,444 in gains.
Like I say, I have a seriously amazing deal coming up in Tulum…if you like white-sand Caribbean beaches and incredible profit potential, you need to be a RETA member and stay tuned.
I’m Budgeting Millions
There were a lot more suggestions in your emails and I thank you for them…and thank you for the intelligence too. Many of you included a lot of cool details from your own research.
Colombia? Yes, it’s on the list and I have team members there right now.
The South of France? Check. Last week, I was sent some deals to look over from the Languedoc. As for the rest of France, I have a team member planning a trip to the Atlantic coast, Brittany to Bordeaux…
The lovely Mediterranean island of Malta holds a place in my heart and for those of you who suggested a trip there, I’m pulling together my latest research to share with you.
As for Nicaragua…I’m about to drop a special edition of my Dream Home Digest showing some good deals from San Juan del Sur. (This publication is exclusive to RETA members.)
The honest truth is I’m up for anything…
Because I know that boots on the ground scouting is the best way to find the best deals, the deals no one else knows about…
That’s why my team and I spend millions of dollars on travel and research. It’s why I continue to budget generously for scouting trips. And it’s why I appreciate everything you guys have shared with me…
For instance, your fellow reader Danny says he thinks Albania has a lot of potential and would like to see a bit more of it.
Well Danny, one of my team is former IL editorial director Eoin Bassett and he’s obsessed with going to Albania. He’s been researching like crazy and has a detailed travel plan. He’s just waiting on restrictions to lift before pulling the trigger. One of the things he likes about Albania is that U.S. citizens can stay visa-free for a year. He reckons that it’s a secret slice of the Mediterranean with extremely low costs of living.
I personally don’t hold out much hope for stellar real estate plays, but I’m happy to let Eoin go and report back to us all here in Your Overseas Dream Home.
After all, who knows…
There’s always opportunity somewhere when we’re looking everywhere.
|
|
Stay tuned…
Wishing you good real estate investing,
|
|
Ronan McMahon, Real Estate Trend Alert
|
Connect with Ronan on Instagram |
