OT: buying an investment property in Latin America

[DropShot_7]

Any experience with this? I’m kicking around the idea of getting a place (vacation home, Airbnb-type) in Mexico, Costa Rica, Belize, etc.

This is a fairly new idea, so I have very little information at this point. But I’m interested in anyone’s advice and or experience. If there are better locations to look at, I’m all ears. Latin America is just what came to mind. Thanks in advance.

 

[Change My Name]

No idea but in

 

[Horns4Life]

I’ve looked into it and it doesn’t seem like it’s that easy to break even on the property unless you live near it and manage it. I’ve wanted to do the same thing for a while, but have yet to see much that rents well. Go Airbnb or vrbo any of the areas you are interested in and look at what places rent for comparable to what you want.

 

[Weller 12]

@SuperPhly
@Iceman

 

[PaulieD]

Costa Rica?

 

[SueVide]

https://www.wsj.com/articles/a-cali...eam-retirement-home-in-costa-rica-11640796791

 

[SuperPhly]

Any experience with this? I’m kicking around the idea of getting a place (vacation home, Airbnb-type) in Mexico, Costa Rica, Belize, etc.

This is a fairly new idea, so I have very little information at this point. But I’m interested in anyone’s advice and or experience. If there are better locations to look at, I’m all ears. Latin America is just what came to mind. Thanks in advance.

I'd look at a place like Puerto Escondido, Oaxaca or something similar.

 

[thismutch]

Covid has put a damper on travel and most of these places depended on tourism for income. Costa Rica has the lowest crime rate of any Latin American country and now they are starting to have some problems that didn't exist before the pandemic. The prices are a little lower now, but with a good reason, you may want to wait awhile.

 

[Bevo1978]

I bought a house in Isla Mujeres about 7 years ago. Love it.

 

[Uncut Degenerate]

Any experience with this? I’m kicking around the idea of getting a place (vacation home, Airbnb-type) in Mexico, Costa Rica, Belize, etc.

This is a fairly new idea, so I have very little information at this point. But I’m interested in anyone’s advice and or experience. If there are better locations to look at, I’m all ears. Latin America is just what came to mind. Thanks in advance.

My in laws own 5 places in Sayulita, MX. It used to be a lot easier and cheaper to acquire land and property, now everyone gets charged the gringo rates. They’ve managed all their own properties for ages but are finally moving to a property manager as it gets a lot of manage a property between a groundskeeper, pool guy, water guy etc.

 

[Comb]

Any experience with this? I’m kicking around the idea of getting a place (vacation home, Airbnb-type) in Mexico, Costa Rica, Belize, etc.

This is a fairly new idea, so I have very little information at this point. But I’m interested in anyone’s advice and or experience. If there are better locations to look at, I’m all ears. Latin America is just what came to mind. Thanks in advance.

I had a few calls to buy something in Medellin late last year.

They are requiring the vax to visit now so I am holding off
until things settle down.

Medellin has the best rental yields in Colombia from what I have
read. Partially due to the tourism of the region, I believe.

Colombia's currency tends to ride the commodity boom and bust
cycle quite well. (peaked in 2011). They have a lot of natural resources.
I am not as familiar with Mexico or CR.

Colombia, Argentina, Brazil, and Uruguay have always been on my list.

Make sure to look at the property rights, what happens to the property
if you pass, and how you get the money into the country.

In Buenos Aires, a realtor told me they were bringing it in via suitcases
and mob-type money changers. In Colombia, there is a firm that does the
money transfers.

Good luck.

 

[W. E. Henley]

I had a few calls to buy something in Medellin late last year.

They are requiring the vax to visit now so I am holding off
until things settle down.

Medellin has the best rental yields in Colombia from what I have
read. Partially due to the tourism of the region, I believe.

Colombia's currency tends to ride the commodity boom and bust
cycle quite well. (peaked in 2011). They have a lot of natural resources.
I am not as familiar with Mexico or CR.

Colombia, Argentina, Brazil, and Uruguay have always been on my list.

Make sure to look at the property rights, what happens to the property
if you pass, and how you get the money into the country.

In Buenos Aires, a realtor told me they were bringing it in via suitcases
and mob-type money changers. In Colombia, there is a firm that does the
money transfers.

Good luck.

One of my college friends bought in Medellin. One of their friends lives there full-time, takes care of the place and pays rent. Sweet setup for both of them.

 

[ThrowittoRoy]

I bought a house in Isla Mujeres about 7 years ago. Love it.

How did you start the process. Real estate agent in US with local referral or local agent only? Did you pre-plan home tours or set it all up when you arrived. Curious on how this gets done.

 

[finchwagoniii]

I recently purchased a 2b/2b investment home in Cabo San Lucas. I'm in it for a reasonable price after a small remodel and expect a 11%+ cap rate (net). Only been renting it for 3 months, but currently booked solid through Mid-April.

I disagree with the above poster who says travel is still depressed. Hasn't been my experience.

 

[batcity]

I had a few calls to buy something in Medellin late last year.

They are requiring the vax to visit now so I am holding off
until things settle down.

Medellin has the best rental yields in Colombia from what I have
read. Partially due to the tourism of the region, I believe.

Colombia's currency tends to ride the commodity boom and bust
cycle quite well. (peaked in 2011). They have a lot of natural resources.
I am not as familiar with Mexico or CR.

Colombia, Argentina, Brazil, and Uruguay have always been on my list.

Make sure to look at the property rights, what happens to the property
if you pass, and how you get the money into the country.

In Buenos Aires, a realtor told me they were bringing it in via suitcases
and mob-type money changers. In Colombia, there is a firm that does the
money transfers.

Good luck.

My wife is in Buenos Aires right now. In order to buy pesos at the preferred black market rate, she calls a guy that delivers in a van. Why a van? Argentina doesn’t have big denomination bills. Black market is 200 to 1 now so that means a lot of pesos that you need a van to drive that many bills around. It is difficult to take dollars out of Argentina under the current leadership. I wouldn’t invest there myself as it is politically unstable.

 

[Fred Palowakski]

recently purchased a 2b/2b investment home in Cabo San Lucas. I'm in it for a reasonable price after a small remodel and expect a 11%+ cap rate (net). Only been renting it for 3 months, but currently booked solid through Mid-April.

I disagree with the above poster who says travel is still depressed. Hasn't been my experience.

 

[finchwagoniii]

Just how I look at income producing real estate investment...sorry it doesn't work out for you.

 

[UTCMK]

Costa Rica?

Whats wrong with it? Supposedly quite modern and educated by latin american standards, and easily the most stable.

 

[UTCMK]

I recently purchased a 2b/2b investment home in Cabo San Lucas. I'm in it for a reasonable price after a small remodel and expect a 11%+ cap rate (net). Only been renting it for 3 months, but currently booked solid through Mid-April.

I disagree with the above poster who says travel is still depressed. Hasn't been my experience.

You are specifically referring to Mexico, which is easily one of, if not the most realistic countries about not getting caught up with the nonsense and lies surrounding covid. They don't require testing, vaccines, quarantines, or any of the other nonsensical and ineffective restrictions put in place elsewhere and are better than most heavily restrictive countries, both from a medical and economic standpoint.

 

[Bevo1978]

How did you start the process. Real estate agent in US with local referral or local agent only? Did you pre-plan home tours or set it all up when you arrived. Curious on how this gets done.

I got with a local realtor (expat) and we looked at about 10 houses over a two day period. Saw which one I liked and the the realtor put in a contract. No big deal.

 

[PaulieD]

Whats wrong with it? Supposedly quite modern and educated by latin american standards, and easily the most stable.

no you misunderstood. I love me some Costa Rica brah. Have friends that retired and have a B&B there.

 

[DropShot_7]

no you misunderstood. I love me some Costa Rica brah. Have friends that retired and have a B&B there.

So why did you post that?

 

[PaulieD]

So why did you post that?

the thread asked for suggestions I said Costa Rica.
anything else?

 

[GrumpyHorn]

Any experience with this? I’m kicking around the idea of getting a place (vacation home, Airbnb-type) in Mexico, Costa Rica, Belize, etc.

This is a fairly new idea, so I have very little information at this point. But I’m interested in anyone’s advice and or experience. If there are better locations to look at, I’m all ears. Latin America is just what came to mind. Thanks in advance.

How are you planning on managing it. You’ll need house keeping, Maintenace, plus what about squatters, once someone is in your home could be very expensive to get them out. Honestly if this isn’t in the field that your are already in does not sound like a good business plan.

 

[Texas919]

I’ve been looking into buying in Cartagena. Any advice would be appreciated

 

[THETexasFan]

I got with a local realtor (expat) and we looked at about 10 houses over a two day period. Saw which one I liked and the the realtor put in a contract. No big deal.

Given that is in the gulf, what is the risk of hurricanes, and what insurance protection is available?

 

[billy badads]

I would pay close attention to the political stability of any area in which you plan on investing any significant amount money that you cannot afford to lose. Not to make this a political post, but Many Central and South American countries are breaking sharply left right now (think Venezuela and the nationalization of many private entities) It depends what your individual risk tolerance is, but personally I would want to see some stability in the region.

 

[DropShot_7]

the thread asked for suggestions I said Costa Rica.
anything else?

You posted it with a question mark, which was the reason for the confusion.

 

[Number 92]

We’re developing custom home lots in Dominical, CR. Huge demand by US ex patriots leaving US. Sell every house before we finish it. Been going there for years. This part of south CR is still very primitive so you have to make sure you’re not looking for Cabo type destination.

 

[DropShot_7]

How are you planning on managing it. You’ll need house keeping, Maintenace, plus what about squatters, once someone is in your home could be very expensive to get them out. Honestly if this isn’t in the field that your are already in does not sound like a good business plan.

It would be managed by a local management company. And since it’s Airbnb, rentals go through the app, which doesn’t eliminate the possibility of squatters, but it reduces it significantly.

I am in the business domestically as I Airbnb my apartment and my house. Doing the same thing in popular vacation spots piqued my interest, so I thought I’d gather some insight here. So it’s not even a business plan at this point. I’m in the research phase. At the end of this phase, if it makes sense to move forward with the next step, I will. If it doesn’t, I won’t.

 

[drag worm]

Whats wrong with it? Supposedly quite modern and educated by latin american standards, and easily the most stable.

Very much so. I visited in 96 right out of college, then again in 05 and am going for Spring Break this year in 2022. It's been a constantly steady and consistent place to visit. Wish i'd had the money to buy when I saw it on 96. You could tell it would become what it is today.