Sep 24, 2020
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Coronavirus Deals: 5 Cheapest Places To Buy Real Estate Now (And Make Money)

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Have you ever dreamed of shopping for a house—for cheap—in a foreign country and moving there to live the expat life? Or buying an investment property and renting it out? Or getting a fixer-upper and flipping it for giant bucks down the road? This could be your moment. While the coronavirus pandemic has been devastating it has also had a silver lining by creating real estate bargains all over the world at a time of unprecedented low interest rates

 

Nothing just like the coronavirus crisis has come along before says Ronan McMahon of Real Estate Trend Alert  a publication from InternationalLiving. com a website that tracks the best places on the earth to live retire travel and invest. Real Estate Trend Alert recently released a report on the five best places to locate bargains around the globe

 

According to McMahon the idea is to take strong US dollars or borrow money at historically low rates and put all of it to work in overseas markets by buying undervalued assets and locking in the opportunity of income and appreciation. Many people feel powerless within the face of this chaos but my feeling is that in case you play this crisis right it may prove to be quite lucrative over the long term says McMahon

 

Add to this a piece revolution—with companies pioneering remote employment—and you have the recipe for expat success. The world is not going back to the way it was says McMahon. It is either scary or exhilarating—either way it s happening. And for opportunity-focused folks it s a gift. When looking for real estate McMahon says it s important to spotlight three different sorts of places

 

Which means trying to internationalized markets like Mexico s Riviera Maya. Or to places where the middle class is exploding like Colombia. Or to downward-trending spots like parts of Europe where the population is older and innovation is restricted but where offerings have historic appeal like Italy case in point says McMahon

 

McMahon also emphasizes that while buying in a crisis can appear easy in hindsight it s not so simple as it seems. His advice: Buying right in any crisis requires cold sober thinking. You start with your personal criteria for an investment. Then you definitely ruthlessly adhere to those criteria

 

You would like to be unemotional and clear-headed. Step out what you think about value and do not be fearful when you discover a deal that matches your criteria. Don t be greedy. Don t hesitate because you think a deal perhaps better in case you wait. If it matches your criteria act

 

Read on for the lowdown on five cheap—and amazing—places to get real estate deals right now. You could get more details in Real Estate Trend Alert s full report. PROMOTED Office Depot OfficeMax BRANDVOICE | Paid Program
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How Does It Affect You? It s hard to believe that it s possible to locate real estate deals in Venice Italy—but it is. GETTY Italy The Scoop: With the aid of the economic impacts of coronavirus McMahon is predicting that prices in Italy will drop to historic lows. We will see big falls in value of best-in-class real estate

 

I m figuring on 30% in Italy on prices which have been already been falling for 15 years says McMahon. The value of marginal real estate within the hills and empty villages will visit zero. And when tourism bounces back in blue-chip locations like Venice and Rome it’s going to open up a brand new marketplace for vacation rentals—meaning you could rent out that apartment you only bought

 

In case you don t desire to live there yourself that is. Insider Tips: Italy has become famous for towns freely giving fixer-upper houses for an insignificant 1 euro each. Italy has been freely giving free houses for years on the way to re-energize depopulated hill towns says McMahon. These are often historic beautiful towns in stunning places

 

The hook is that you would like to take a position money to repair up your new home but in case you ve got the willpower there s no better deal anywhere. The newest town to begin hawking free homes is Cinquefrondi a COVID-free village located in Calabria—a region in southern Italy—and McMahon predicts the craze will now move northward

 

Even before the crisis McMahon says he was finding apartments in places like central Florence and Venice that create double-digit yields. The trick was to buy something old and unloved but in the correct location perform a little smart cosmetic work and market it better than any of the competition says McMahon

 

I discovered apartments under $200 000 that fell into this category. How a few piece of real estate in paradise—on Mexico s Riviera Maya. GETTY Riviera Maya Mexico The Scoop: Mexico s Riviera Maya has been transformed through the years from a sleepy backwater right into a world-class vacation destination. And inclusive of the tourism growth mobile professionals and digital nomads have flooded to towns like Playa del Carmen and Tulum

 

Tulum has cornered the marketplace for being eco-chic says McMahon. It s the kind of place where stars who fly in private jets can feel virtuous by spending some nights off-the-grid on the beach. It s as fashionable a destination as St. Barts St. Tropez and the Greek island of Mykonos

 

Before a 1 000-square-foot oceanfront condo in Playa del Carmen could set you back $600 000 but things are about to change—for a quick moment. Due to the crisis a buying moment exists today—a pause within the mammoth growth trajectory of the Riviera Maya which may be turned to an investor s advantage says McMahon

 

The goal is to buy the correct real estate to be set up for income and appreciation. Insider Tips: McMahon s advice is to go fast. The Riviera Maya is in the midst of a multi-decade transformation and this current crisis goes to be a quick sharp shock after which it s back to the races says McMahon who thinks buying pre-construction is a brilliant idea

 

That means: By the point somebody takes delivery of a condo millions of vacationers may have some time past returned to benefit from the beaches cenotes international dining and tropical weather. You could rent your new vacation home to only those people. McMahon says he has seen spacious townhouses in Tulum for $149 000 that he figures will be worth $76 000 more within a year of delivery and will throw off a 13% yield or more on rentals

 

Due to the crisis I used to be ready to get a free pool thrown in with each home says McMahon. The developer s construction costs are in pesos but we’re buying in dollars so as his costs dropped I used to be ready to get him to concede more

 

He has also seen deals on two-bedroom condos just steps from the beach. Currently priced at $174 800 he predicts that they will be worth within the region of $260 000 within five years. Aerial view of Punta del Este in Uruguay which has plenty of real estate deals. GETTY Uruguay The Scoop: In uncertain times smart investors search for a secure haven

 

They appear to assets like real estate—in places where they could park themselves and their money says McMahon. Uruguay is a type of places. This little country rarely makes the inside track headlines. It s a beacon of stability in an uncertain world. Much so it s almost dull. Insider Tips: McMahon recently found ocean-view half-acre lots along Uruguay s stunning Atlantic coast for as little as $31 356 inclusive of interest-free developer financing on the table: a manageable down payment followed by 48 monthly payments of $490

 

I predict these lots will be worth $50 000 in the next few years because the crisis passes and the world gets on with its business says McMahon. And that s not all: McMahon points out that with the aid of the current crisis sales have all but stopped for some developers so it is the moment to return in and negotiate on that home in paradise which you ve always dreamed about

 

Overlooking Panama City which is filled with deals. GETTY Panama The Scoop: Just like London New York Singapore and Hong Kong Panama City has become a worldwide center of finance and commerce. Plus it s safe and stable—a rarity in a turbulent world. Panama s robust economy weathered the 2008 crisis and Panama will withstand the current global crisis just fine too says McMahon

 

Panama is a type of safe havens that sucks in resources when things on the earth get volatile. Insider Tips: With the aid of a proposed change within the Panamanian tax code some real estate developers are enjoying massive tax credits—and passing the savings on to investors. An example: McMahon found a building with beachfront condos in a good looking community almost Panama City that was earmarked to be a hotel

 

The developer was discounting as much as $65 700. My prediction on gains? Easily six figures within five years says McMahon. I reckon $135 700. And I figure on a gross rental yield of 15. 7% when the community s momentum is realized…and this is true beachfront. Medellin Colombia—a hot spot for real estate deals

 

GETTY Medellín Colombia The Scoop: McMahon says that Colombia is another solid bet. It has emerged from its troubled past to become a serious regional player with a steadying political environment market-friendly policies rich natural resources strengthening trade ties and a modernizing economy. But its currency has tanked and like everywhere else on the earth the genuine estate market has stalled with the aid of the current crisis

 

What does this mean? We will buy cheap in an area with big upside potential because its currency is depressed and motivated sellers ought to drop their prices to draw buyers says McMahon. Insider Tips: McMahon keeps an in depth eye on opportunities in Medellín which sits high on his global shortlist of incredible cities

 

Medellín is a hip must-visit city says McMahon. Before the current crisis tourism was on a big tear in Colombia. There s no reason it won t continue within the future. Adding to the appeal: Buyers call the shots and may play sellers off against each other. Today big luxury condos in Medellin s best neighborhoods can list for $100 per square foot

 

Discover a motivated seller and you could pay below $80. How do you discover a motivated seller? Cast a large net and let potential sellers compete for the sale. McMahon advises offering 30% below asking prices. An example: Within the city s premium neighborhood certainly one of my researchers found a nice-looking three-bedroom apartment with an asking price of $178 392 says McMahon

 

It have been over $221 000 just a few months prior. Now here s the thing—that s just the effect of falling currency says McMahon. But because the crisis bites you ll find more motivated sellers. READ MORE: •  Survey Says: The Best And Worst Airlines In America In 2020 •  Is Japan Home To The Latest Greatest Coronavirus Travel Deal? •  Ranked: The ten US Cities Best Positioned To Recover From Coronavirus (And The ten Worst) •  Ranked: The 20 Top Places Americans Are Dreaming About Right Now

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