Learn how to beat the land rush if you invest early in up and coming destinations.
Photo by Wandering Angel
Four years ago I visited Nicaragua and didn’t want to leave. So I found a way to stay longer: I bought real estate.
You may think it’s too expensive to buy real estate in your dream destination. Yet you can still beat the land rush if you invest early in up and coming destinations.
Then the next time you think about leaving the beach and going home you’ll simply swap your towel for a hammock on your front porch; a good buy instead of a goodbye.
Here are my top 10 tips to consider when thinking of buying in:
1. You know you love the place but are you alone?
If it has an unusual charm that only you could love then renting the place out to others is never going to be easy. But if you want to live there 365 days a year then perhaps you don’t care. No one said you have to share.
2. What do you need to live?
So you’ve got your surf, you got your board (dude), you’ve got a beach shack café that serves you Cokes and sandwiches between waves. But is that enough? Maybe it is. Or maybe longer term you’re going to want a cinema, Indian food, or peanut butter. Where can you get them?
3. Get Googling
Get the stats my friend. How are tourism trends going? The hot profits are made in the hot spots. Then again, if you want to be on your own, in your isolated personal paradise then head away from the crowds. What you lose in appreciation and rental income you’ll make up for with privacy and tranquility.
4. Read those planning guidelines
Photo by Fly Dime
If you’re buying in a planned community make sure your vision matches theirs’. You want a charming low density fishing village – they want to sell you a high rise condo. Something has to give. Just make sure you know what you’re getting into – likewise for all properties, first get yourself a copy of the local municipal planning regulations.
5. Work out who your buddies are going to be
Will you be the hippest twenty something in a retirement community or the only old-timer in Surf Town? Get a feel for the local expat community. Can you see yourself as one of them?
6. Learn the language
Yes it’s one of the many beauties of Belize – they speak English. But for most countries you’re going to have to learn the lingo if you want to fit in. Builders, maids, traffic cops and bar tenders will all need to be communicated with. Remember: if you don’t speak-a-the-language you don’t make-a-the-friends.
7. Amenities
I once met a Swede who swore all he needed was cereal and surf. Maybe he was right but most of us, who stay in country a little longer, eventually admit we need more. Will you go nuts if you can’t get a hot shower? Will power blackouts make you scream? Will mozzies turn you into a repellent-wielding maniac? Be honest and avoid pain later.
8. Planes, trains and automobiles
Will it cost the earth to get home or are new cheap air flights opening up? If they are then that could also boost property prices. How will you get around when you make the big move? Will the bus feel as charmingly rustic after the 70th time you have a crate of chickens dumped on your knee? Will you want your own wheels?
9. Communications
Skype, email, weblogs, Facebook, photo sharing etc – you can keep up with everyone back home with broadband and a laptop. If you’re unsure about your access to the web, you might want to check the availability and cost of an internet line before you make the switch.
10. Most important of all: give something back
Don’t lock yourself away from the community – be apart of it. Support charities, work with local business, provide employment and take part in everything that you can. Be their favourite gringo.
Community Connection!
Many Matador members have taken the plunge and made a home overseas. Richard is firmly settled into his new home in Mompos, Colombia.
Brian recently opened the El Diablo Tranquilo hostel in Punta del Diablo, Uruguay, where he has played host to over a dozen Matador members, including Tim, Huntzig and Tyler.
Christian is co-owner of an sustainability center in the north of Thailand, just across the way from Ryan’s plot of land.
Matador is blossoming with opportunities. Join today!
Claudia Gonella joint owns real estate businesses in Belize and Nicaragua and blogs regularly on their respective property markets. Read more on her Nicaragua Blog or Belize Blog.About the Author
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9 Comments... join the discussion!
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Advice for people on how to buy land in “up and coming” countries: understand that if there are no tourists you’ll be alone, because the locals are just so many palm trees! make sure you like the other foreigners, but learn the local language so you can communicate with the maid! and then donate to charity so the poor, starving locals will look up to you.
It’s like the people whose country you’re buying in don’t even exist except to either help you (the maid) annoy you (person who dumps chickens on your lap in their inconvenient transportation system) or make you feel good (person who decides you’re their ‘favourite gringo’ after you give them your old clothes or whatever.
Please tell me where your place is, so that I can make a note that I do not like the ‘expat community’ there.
Amazing.
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rob – a great point, thanks for sharing.
wow – i’m sure claudia wasn’t implying that locals are there to be exploited by the typical rich westerner. i read her article as emphasizing that expat’s should NOT remain separate from the community, but become an active participant.
also, her tips don’t have to always apply to buying property in “poor” countries. anywhere a traveler feels the need to move in permanently can benefit from her advice, whether a rural village in France or a beach town in Costa Rica.
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Hey, she’s the one who used the phrase “up-and-coming.” Rich countries aren’t up-and-coming, they’re already there.
But it doesn’t matter where she’s talking about. “Learn the language so you can talk to the maid” is obnoxious in any country.
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Greetings -
I would just note that wherever you buy make sure you can ACTUALLY live there year-round (if that is your intention). Currently, I live in a country and if you are a foreign national who purchases property (land or house) here you can only reside in the territory for six months out of the year. If you need to work, check out work permit issues, as well.
Regards,
Mark↵ -
Nice post, it’s good to see somebody putting some good info out there. Buying a house is a massive undertaking for most people but there are many potential problems. This is never helped by the fact it can be such a profitable business for those involved in it so good solid information can be difficult to come by.
I run a mortgage information site myself and it amazes me sometimes how some people don’t arm themselves with good information before diving in.
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Great tips. My wife and I have parlayed a small apartment in the south of france into numerous European travel opportunities, including some by home exchange. Learn what we have done, and continue to do, at our blog … http://www.patandlewtravel.wordpress.com.
LEW
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Claudia –
Nice article. A friend of mine just wrote a guest post for my site on what it is like to [actually] live in Nicaragua…it’s a nice supplement to what you have covered:
http://www.mytropicalescape.com/2007/07/27/nicaragua-purchasing-property-and-living-there/
I hope you find it useful.
Best,
Mark↵ -
Good article, and good points, Mark. I’d add that if you plan to spend any significant amount of time (generally considered by governments to be three months or more) in the country, you’ll need to check local regulations regarding residency visas.
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