| A would-be real estate investor at a conference | | | | in Montevideo, Uruguay. Our Roving Latin America |
| in Puerto Vallarta in April said he'd researched the | | | | Scout Lee Harrison reports that Uruguay's is the |
| Costa Rican property market for five years, | | | | best buy real estate market in the Americas right |
| considering making a buy. Meantime, prices | | | | now. Real estate costs about the same in |
| appreciated, maybe, 200% in that period. The | | | | Montevideo as it does in Buenos Aires, except in |
| market became too expensive for him and he | | | | the Old Towns. Today, you can buy an |
| never did act.Another investor at a Real Estate | | | | apartment in Montevideo's Old Town--just |
| Forum in Puerto Plata, explained that he'd been | | | | beginning to be rediscovered--for as little as $540 |
| watching the market in the Caribbean island nation | | | | per square meter. Compare this with $2,000 a |
| of the Dominican Republic, for more than two | | | | meter or more for a similar buy in B.A.3. A condo |
| years but was still uncertain as to whether or | | | | in Panama City, again rentable on the short-term |
| where to buy. He lamented the rate of | | | | market. Here, though, to stay within the budget, |
| appreciation of property values during those 24 | | | | you'll have to finance...which is possible in Panama. |
| months.Two pieces of advice: First, yes, do your | | | | Put $50,000 down on a $150,000 apartment...and |
| homework. But, second, don't become paralyzed | | | | your rental income could cover your monthly |
| by the analysis. Nothing is guaranteed. You'll rarely | | | | mortgage payments. At today's values, that |
| identify a "perfect" time to buy. You'll never know | | | | $150,000 could buy you a one- or two-bedroom |
| you're making the right move. In any market, at | | | | condo in a new building, which is a good product |
| any time, you could lose everything you invest.If | | | | for this rental market.4. A sea view apartment in |
| those things make you uneasy...you shouldn't be | | | | Croatia, again for the short-term rental market. |
| thinking about investing in international real estate. | | | | You can find a good buy on a renovation in some |
| This is risky business...often speculative...in | | | | parts of this country for less than $50,000, but it'll |
| unregulated, Wild West markets. Dealing with | | | | likely require substantial further investment to |
| people you wouldn't do business with if you had | | | | make it what you need for rental...perhaps as |
| any choice (sometimes you don't). If something | | | | much as another $100,000. Instead, look for |
| goes wrong, you'll likely have little or no | | | | new-build. Specifically, right now, there is an |
| recourse.That's the game. Investing in foreign real | | | | opportunity on the island of Ciovo (note that the |
| estate is more risky and more complicated than | | | | locals don't consider it an island, as it is connected |
| investing in U.S. real estate. Recognize these | | | | to the mainland by a bridge that you won't even |
| truths. Choose your markets. Do your research | | | | notice driving over). This is a destination for |
| and due diligence.You must have the answers to | | | | middle-class Central Europeans who drive down |
| the six primary factors to consider when making | | | | easily from Hungary, Austria and Slovenia for |
| a real estate investment--and how each one | | | | vacation. It also boasts easy access to the Split |
| affects your level of income: 1. Why you're | | | | airport, which offers flights each day connecting |
| making the investment. Do you intend to use and | | | | through Zagreb and a few direct flights from |
| enjoy the property? Or, are you only looking at | | | | outside Croatia. There's a new-build studio |
| the investment potential? That's important to | | | | apartment on this island available for $58,000. Yes, |
| your initial outlay and your long-(or short-) term | | | | it's a little outside the parameters of the budget |
| returns. 2. What's your tolerance for risk? Learn | | | | suggested above, but it'd potentially make a good |
| your Risk Comfort Level, is this investment within | | | | rental.5. Cyprus is struggling with reunification |
| those parameters? 3. Your options for financing. | | | | problems. But, with some of the remarkable real |
| Cash or credit? Your answer helps determine | | | | estate opportunities --and the EU about to |
| your investment. 4. What fits well in your existing | | | | impact--the rewards may well be worth the risks. |
| portfolio? To be well-balanced, your portfolio | | | | In the popular resort town of Kyrenia, northern |
| should have a range of assets including real | | | | Cyprus , you can get a three-bedroom sea-view |
| estate--and your portfolio should include a range | | | | apartment-- for just $55,000! (To put that into |
| of properties. 5. Your level of experience in the | | | | perspective, a similar property would cost you |
| market. Experience is the roughest | | | | $110,000 in southern Cyprus...$250,000 in |
| teacher--because it gives the test before it gives | | | | Corsica...and $330,000 on the island of Mallorca.) |
| the lesson. 6. Your desired level of involvement. | | | | Property taxes are almost non-existent. |
| Your level of participation will help you determine | | | | Inheritance taxes have been abolished. And capital |
| your type of investment.Then act. Take a first | | | | gains taxes don't even kick in until your gains are |
| step. Don't invest money you can't afford to lose. | | | | in excess of $20,200.6. Bulgaria is a quiet, |
| Control the circumstances as much as possible. | | | | picturesque country--once home to world-class |
| But don't wait for a sign from above that the | | | | European ski resorts-and it has become one of |
| timing and the opportunity are ideal. The sign | | | | Europe's fastest developing nations. It could easily |
| won't come...and the market won't wait. For a | | | | become one of your fastest growing |
| first deal, you should probably invest no more | | | | investments. Bulgaria's mountainous countryside is |
| than $50,000. Here are six buys you could make | | | | studded with ancient farmhouses begging for |
| right now (May '06) with that budget:1. A small | | | | restoration. Many compare it to Tuscany in the |
| apartment for short-term rental in Buenos Aires, | | | | 1970s. And, if you act now, you can pick up an |
| Argentina. Three years ago, in the wake of the | | | | abandoned farmhouse nestled in the verdant hills-- |
| peso devaluation, you could have bought a big | | | | for just $9,800!Borovets is the oldest and largest |
| apartment in a prime neighborhood for less than | | | | ski resort in Bulgaria . It's also one of the hottest |
| $50,000. Values in this market, however, have | | | | Alpine investment opportunities in the world. And |
| more than doubled in that period. Still, you can buy | | | | right now, you can get a two-story, 1,200 sq. ft. |
| a decent apartment in a neighborhood appealing | | | | house situated in a peaceful village minutes from |
| for the short-term renter for about that amount | | | | Borovets...with a large garden and views of the |
| today.2. A colonial apartment for short-term rental | | | | slopes-- for under $30,000!Good luck. |