I did an interview last week with podcaster Shawna Lum, host of “Untold Secrets of Living Overseas,” and from the few hundred attendees (who were based all over the world, from the U.S. to Argentina to India and a few dozen places in between), one of the most frequently asked questions we got was to elaborate on the investing side of going international.
My top tips were to educate yourself on the market in person, not just from online research, to make use of local professionals like attorneys and tax advisors, and to start the process of opening a bank account in the country of interest sooner rather than later, as this is often the first step in making an investment overseas (though not always strictly necessary).
It’s hard to dig into this rich topic much deeper in just few minutes of conversation, though…
But with a few days spent dedicated to international investing in the company of some of the world’s leading experts on the subject, it’s possible to come away confident in your ability to make a purchase that will result not just in profit, but also some fun and adventure.
And this is just what we offer once a year at our International Property Summit, which we’ve just launched.
Here’s a teaser of some of the kind of insider info you can expect from this event, coming from Lee Harrison, a seasoned investor with property purchases spanning the Americas, and one of our top experts on buying real estate overseas…
Four places jump off the page of my annual survey of 28 property markets around the world, just published in Global Property Advisor.
These four markets have been home runs for capital gains investors while also earning decent income.
Let’s take a look at these markets, analyzing their performance over the past three years. (The costs per square meter are based on a two-bedroom, two-bathroom apartment with an ocean view.)
#4 – Puerto Vallarta, Mexico
Cost per square meter: $5,720
Three-year price change: increased 66.2%
Property trades in: USD (or MXN)
Puerto Vallarta is a “branded” city that conjures images of sun, fun, surf, beaches, fine dining, and natural beauty.
Branded cities hold a big advantage for property investors since their public image alone goes a long way toward making the case for visiting, buying, or investing.
When it comes time for renting or resale, your life is easier if you’re in a branded city.
What’s more, the operating cost for a property in Puerto Vallarta is inexpensive, thanks to the current strength of the U.S. dollar.
It’s no longer at its peak, but it’s still strong by historic standards. Your taxes, restoration costs, furniture, and upkeep will all benefit from a strong dollar.
At more than $5k per meter for ocean view properties, PV is not cheap.
But the quality construction, broad views, active rental market, and high occupancy rates have kept investors in this market for the long haul.
#3 – Providenciales, Turks And Caicos
Cost per square meter: $11,366
Three-year price change: increased 77.1%
Property trades in: USD
Providenciales is quintessential Caribbean; it has powdery white-sand beaches, crystal clear waters, luxury accommodations, and fine dining.
Residents enjoy the sun, the sand, and the excellent diving and snorkeling on its 80 miles of barrier reef.
Compared to the high energy and crowds of Puerto Vallarta, Providenciales conveys a quiet and refined feel. Providenciales is the most developed island in Turks and Caicos, yet it has a population of just 25,000.
The beachfront properties on Providenciales are some of the most beautiful in the world… and with price tags of a million dollars and up, it has long been a second home market geared toward the wealthy.
A few years ago, Lief Simon was speaking with a GPA member who insisted that this was also a good investment market… a market on the move. (As you can see, GPA members are more than just readers… you are often an important part of the team.)
Wanting to nail down the numbers, Lief asked me to keep an eye on it. As it turns out, our member was right. Prices on Providenciales have gone up by a healthy 77% over the past three years.
At more than $11k per meter, this is one of the world’s most expensive markets… but it’s a high performer, nonetheless.
#2 – Mazatlán, Mexico
Cost per square meter: $3,179
Three-year price change: increased 77.3%
Property trades in: MXN (or USD)
Most people come for the long, sandy beaches, lined by one of the longest boardwalks and bike lanes in the hemisphere.
And while inventories are low, there’s still a fair number of on-the-sand beachfront properties and water-view homes available.
But the newly refurbished historic center—which also has a beach—is actually more popular with full-time expats than sectors that have longer, nicer beaches.
Here, people are drawn to the city’s best restaurants, attractive plazas, theater, live music, and historic architecture. (I have a home here myself.
As a further testament to its value and lifestyle, Mazatlán ranked #3 in the world in this year’s Overseas Retirement Index, published earlier this month.
Mazatlán is a long-time beach resort located on Mexico’s Pacific coast. And while it’s certainly not undiscovered, it has been seriously overlooked by investors and second homebuyers.
But it looks like those days are over. As with most outliers, people eventually notice. In fact, dozens of our readers have purchased and moved here over the past few years.
Indeed, we made three specific project recommendations to Global Property Advisor members. Here’s how they turned out:
· Casa Victoria’s units have increased by about 118% since July 2020 (34% per year);
· Villa Vicario has increased 59% since February 2022 (32% per year);
· Las Gavias Grand is up around 100% since December 2017 (17% per year).
Mazatlán’s boom coincides with the completion of a new highway connecting it to Mexico’s interior cities, such as Durango, Torreón, and Monterrey.
Even McAllen, Texas, is just over 12 hours away nowadays, according to Google Maps. This highway has brought vacationers, investors, and buyers from all over Mexico.
Inventory is tight in Mazatlán, but there are still plenty to look at and still room for investment growth. There are over a dozen condo projects underway on the waterfront, but so far there is enough demand to keep available inventories low.
#1 – Northern Cyprus
Cost per square meter: $2,595
Three-year price change: increased 100%
Property trades in: GBP
The island of Cyprus offers pure, Mediterranean beachfront…
While prices here have risen over the past three years, they’re still amazingly low. You won’t match them anywhere on the Med. In fact, prices here are even cheaper than in Mexico.
When Lief Simon zeroed in on this location in 2020, I wondered if it would be too expensive… or too far off the beaten path.
But the first project he brought to the table—offering new, modern beach condos for less than $60k—set the record straight. Investors and second homeowners turned their attention here.
Lief ran the numbers at the time and made a good investment case for a rental property here… projecting returns of around 8% to 10%, with close to 90% occupancy. Any capital gains, he said, would be icing on the cake.
The “icing on the cake,” as it turns out, has been a 100% increase in average property costs over the past three years.
Yet despite this impressive performance, the cost per square meter here is still just $2,595… partly due to the U.S. dollar’s strength against the British pound.
This price is a bargain for any beach property anywhere, let alone the Mediterranean.
Sincerely,
Lee Harrison
Contributor, Global Property Advisor
