Investing in overseas real estate means you can have the life you want and live in and own homes that make money.
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…
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. 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.
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 .
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. Let’s dive in: My contact rents his own villa on the Algarve each summer. As lockdowns spread rapidly around the world in 2020, he had most of his reservations cancel, but it took him less than a week to replace every single one with new bookings. Then, just this summer he pulled in approximately $44,000 in just two months renting out his home.
On top of this, in Portugal right now you can get exceptionally cheap bank financing. With a low interest rate mortgage, you can be into opportunities here for very little. In fact, right now, foreigners can borrow as much as 80% in Portugal, at rates of as low as 0.9% or even less. The opportunity on the Central Algarve is to lock down something undervalued, old, or unloved, then polish up, establish a rental stream and sell it. With the right property, you could easily be looking at six-figure gains or more.
For instance, one member of my Real Estate Trend Alert group bought two condos as investment properties about five years ago for approximately €430,000 each. They rented them both, bringing in an average of about €30,000 a year each and recently sold one for €650,000. Those are some serious gains. Panama Panama was the first place I ever invested overseas. That was 2004, and the window of opportunity was brief, but worth serious upside to anyone who got in before it closed.
Panama’s strategic location for shipping and trade drives its growth. It lies between North and South America with the Panama Canal connecting the Pacific and Atlantic oceans. In 2019 the World Bank declared that over the past decade Panama has been one of the fastest-growing economies in the world. In fact, Panama is now ranked as a high-income nation by the World Bank. The strong economic growth has added more folks to the upper-middle-class bracket over the last 10 years. And Panama’s safety and stability is a big draw for wealthy Latins, too, who feel comfortable flaunting their designer bling and Lamborghinis.
The kind of place you could rent long term to young entrepreneurs, older retirees, and executives working for a big multinational in the business districts close by. And where you could see rapid appreciation as demand continues to rise against supply in Panama City. In Playa Caracol this developer has already delivered well over 300 units. And because of his long history with my Real Estate Trend Alert group, members had the opportunity to buy here at remarkable pricing.
What we can lock down ahead of the Path of Progress and ahead of Panama City’s next wave of growth, is already on track to become one of the most premium addresses on the Pacific Riviera. It’s where the chic spend their weekends…well-heeled families come to relax and unwind. It’s this desirability that will drive real estate values in the community up as it gets built out.
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.
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