Published: Dec. 1, 2021 by: Ronan McMahon
I’m met with the faint scent of sea air. The condo is just how I left it almost three months earlier. Not a thing out of place…
Instinctively, I make my way to the terrace, to the million-dollar views. It’s what drew me to the property when I saw it a year before. But it hits me afresh when I pull back the sliding glass door.
The beach is untouched and wild. From my terrace I can almost hear the millions of grains of sand being sucked out by the ocean’s heaving backwash. Then, like a great exhale, another huge wave comes crashing to shore, spitting ocean spray.
My phone buzzes. A message from my rental manager welcomes me back and tells me that the final payment is in my account. In the 10 weeks I’ve been away, my condo has accumulated $10,000, covering my entire year’s mortgage, plus taxes and HOA fees. And now, here I am, getting the $1,000-a-week experience for free.
Even after nearly two decades of buying overseas real estate, I wonder how the heck this is even possible…and why more people aren’t doing this. With one purchase I have an asset that pays for itself, that appreciates in value, that I can use as a home, and that makes money when I’m not using it.
Today, I own property in six countries, I have residence or citizenship in five. I spend my time traveling between my international bases. I never have to endure cold, or heat…I time my travels to make the most of perfect weather.
Investing in overseas real estate means you can have the life you want and live in and own homes that make money.
Like I say, I have been investing in real estate overseas for close to two decades, because when you look overseas, there is always opportunity somewhere.
I don’t look for any old international opportunity. I’m focused on the very best ones. The ones that give the biggest upside for the lowest risk. Because if you are willing to look beyond your home borders, you really can have your cake and eat it.
In today’s high-inflationary world, this is the ultimate no-brainer. With real estate you can preserve your savings, and even grow them, by investing in an asset that rises with inflation. And, if you do it right, you can even own an asset that rises in value faster than inflation.
People will always need shelter. The land, and building materials, have a tangible value. You can raise rental rates in line with inflation.
According to data from the U.S. Bureau of Labor Statistics, from 1967 to 2021 the price of housing has gone up 4.16% per year, versus an overall inflation rate of 3.93%. So, if you bought a $100,000 home in 1967, it would be worth $901,165 today. This doesn’t account for any rental income you could have also collected, and over 54 years that would be a significant amount.
Take a global view, investing in real estate overseas, and you can also benefit from record low interest rates. Buying a property in Portugal for example, maybe you get a fixed-rate, long-term mortgage at 1.5%. On a €250,000 property and a 20% deposit, this means your monthly payments would be €554.
If inflation is here for the long-term, too—and unless governments stop accumulating debt, long-term inflation is probably a safe bet—then your €554 monthly payment essentially shrinks in value over time. By that, I mean €554 today buys you a lot more than €554 10 years from now. Meanwhile, your property might have appreciated to €300,000 and you’re collecting €2,000 per month in rent (a 250% return on your monthly mortgage payment).
This might seem like a fantastic hypothetical, but it’s not. Mortgage rates are at record lows and in places like Portugal, it’s actually possible for you, even as a foreigner, to pay a rate of less than 1%.
That brings us to the main stumbling block that prevents most folks from ever taking advantage of an overseas real estate opportunity: Where to begin…
There’s no easy way to find a profitable real estate opportunity. If there was, everyone would surely be doing it. I personally spend six months of the year on the road, scouting for deals. My team and I spend millions of dollars each year on travel and research. This is what gives us the edge and allows us to identify opportunities ahead of mainstream real estate buyers. I’m talking about the kind of deals that create double-your-money gain. The kind that make you wonder how the heck it was even possible.
Of the hundreds of destinations my team and I have visited, and the thousands of deals I’ve assessed, right now there are three places that stand head and shoulders above the rest in terms of the profits they can deliver.
Mexico’s Riviera Maya
The Riviera Maya is an 80-mile stretch of pristine Caribbean coastline on Mexico’s Yucatán Peninsula that goes from Cancún in the north to Tulum in the south.
It’s a treasure throve of white-sand beaches, glistening turquoise water, and dense jungle that’s bursting with wildlife. It’s also a place that attracts millions of international visitors each year, making it one of the most powerful destinations I know for rental plays.
I first visited in 2004. Cancún was developed. Playa del Carmen still a quiet sleepy beach town. I continued south, took a one-lane road that turned to dirt then stopped when I saw turquoise water sparkle. I walked through an empty palapa restaurant. Then, my jaw hit the floor. Miles of the most pristine white sands I had seen opened up in either direction. It was empty. The beach. The restaurant… welcome to Tulum.
I’ve spent the 17 years since staying ahead of the juggernaut Path of Progress as it rolled south along the stunning Caribbean coast, transforming Playa del Carmen into a booming resort city, and the tiny town of Tulum is an ultra-chic destination that attracts New York fashionistas and Hollywood elites.
The Riviera Maya is what I call “the convenient Caribbean,” every bit as beautiful as any island, but a lot easier to get to for millions of people.
Indeed, the Riviera Maya has been drawing people from right across the world for a while. These folks come for the weather, the beaches…the amazing range of cool stuff you can do. And now they are coming in much greater numbers because they can.
Since the pandemic, the Riviera Maya’s ease of access and proximity to the U.S. and Canada has been crucial. It has made it the perfect destination for a growing mass of people who now take their work with them anywhere. Longer-stay folks have every amenity they need, including international schools for their kids, gourmet supermarkets, and so on.
As towns like Tulum grow, owning real estate that is rare, discreet, and exclusive sets you up beautifully for explosive rental demand and for rapid potential for gains.
From my contacts in the rental industry in Tulum, I’m told a two-bedroom condo will run you $1,750 to $2,000 per month. A house could go up to $2,000 to $3,000. And remote workers are more than willing to pay those prices. Even better, it’s not just one type of person coming here. Older people, younger people, families, groups of friends…all want to be in Tulum—and that variety makes the rental market that much stronger.
Members of my Real Estate Trend Alert group have done exceptionally well here.
Condos that RETA members secured for $208,440 are now listed at $311,000—a six-figure lift. And a condo that was available for the RETA-only price of $166,860 is now at $239,000…a gain of $72,000.
Our group secured our profits by getting in at RETA-only pricing from $154,500 for a two-bedroom condo. As we do and say in real estate, we made our money buying. I myself bought one of these entry priced condos and sold my unit in early 2020 for $225,000.
In February last year, RETA members could buy two-bed homes in Edena, Tulum, for $149,000. A few months later, in October, homes were listing for $199,000.
Like I say, few places on my beat have been as profitable as the Riviera Maya. There is strong rental demand from multiple markets pretty much year-round. A big international mix of people, lots of fun things to do, good food…stunning white-sand beaches.
Like the Algarve and Panama, the Riviera Maya is an internationalized place. A place where—with the right real estate—even in bad times you still do OK. Buy well, and you can own a true money-maker, an overseas home, and an asset that protects and grows your wealth for years to come.
Source: https://www.marketwatch.com/story/these-are-the-top-3-places-to-invest-in-real-estate-today-11638394243
