Will Rogers’ investment strategy remains as valid today as it did nearly 80 years earlier. In the last eight decades, oceanfront has been systematically bought up by people. What’s left? Read more now on Phuket villas for sale
It’s getting harder to find beachfront worth buying at a price worth paying. Our editors have found six locations where beachfronts are both unique and undervalued.
1. Panama. Panama is a great place to invest in real estate (and your retirement and second home dollars too).
Panama is not undiscovered. Is its beachfront undervalued, then?
In certain regions, yes. It’s not within easy reach of the city. Since more than a decade, the value of these weekend getaway beaches has risen rapidly.
Not in Bocas del Toro on the Caribbean where again the gringo buyers, developers and agents have created a bubble.
Veraguas. Veraguas is the place you should be looking at right now. The best Pacific Coast buys are found in this large province, located about three hours west from Panama City.
Panama’s currency is the U.S. Dollar, so there are no exchange risks.
2. Dominican Republic Cheapest Caribbean beachfront available today. The quintessential beachfront that many people consider to be the definition of the word. The soft white sand is surrounded by gently lapping green water. You can find the same white sand, emerald waters, and turquoise skies in St. Lucia, St. Barts or elsewhere, but at a much more affordable price, whether you are a second-home buyer or a speculator who wants to make a quick flip.
Samana Peninsula offers the best opportunities. The focus is on Cap Cana, where The Donald is developing Trump At Cap Cana. You should instead focus on the northwest (Samana). This green, lush region has more than 20 miles white-sand coastline.
Las Terrenas is a fishing village that has become a tourist attraction. The expat population of 2,500 here is rapidly growing. A condo with a view of the ocean can be purchased for as little as $2,100 per sq. meter. Rental yields are higher than average at 6 to 8 percent net per annum.
Undeveloped beachfront can be surprisingly affordable. You won’t find a better deal in the Caribbean than $40 per square meter for prime white sand and services. As low as $20 per square meter for hillside lots.
3. Uruguay. The beachfront property market in Uruguay is not dependent on American buyers like that of Panama or the Dominican Republic. This is important to remember if you are looking for an investment.
We have two recommendations for Uruguayans: the first is for investing, and the second is for living part-time, or in retirement.
Rocha is the province to invest in. Punta del Este, in the neighboring Maldonado Province, has been a popular destination for both tourists and buyers. Rocha has beaches that are equally beautiful. As Punta del Este expands, the beaches of Rocha province to the north will also benefit. Rocha is also a good option for Brazilians, who are a large part of Uruguay’s market, and drive south to the country’s cheap, safe beaches.
The second is the lifestyle: Piriapolis with its stunning bay, charming rambla, cafe society, old grand hotels, casino and first class marina. We believe that the real estate values will increase in Piriapolis in the coming years. However, it is the lifestyle here that really attracts people. This is a friendly, safe and relaxed place that brings back memories of small-town America from a half century ago.
David James, a friend of mine, is currently working on a project to create the first private residential community in the country. David’s Sugar Loaf Ocean Club & Spa may not be on the beach, but residents will still enjoy sparkling ocean views and high-end amenities… at very affordable prices.
4. Ecuador. Ecuador’s coast market, particularly around Salinas and Montanita/Olom as well as Manta is booming. Here you can find instant investment satisfaction. Our on-the-scene reports show that properties are purchased and then sold the following month at a profit of 20%, 30% or even 50%.
This level of activity should raise alarms. Be alert.
Buy a finished condo in Salinas or a pre-construction one for capital appreciation as well as rental returns.
If you have a bit more patience, consider buying in more remote coastal areas, where you can buy property for as low as $3 to 5 per square meter. This is equivalent to between $30,000 and $50,000 for two-and a half acres of beachfront land. That’s a bargain.
But remember, this is an investment that will pay off in the long-term. Our sources tell us that you should buy in small fishing villages and forgotten coasts that are expected to appreciate considerably, but currently lack amenities. It will take a while to see the benefits of this investment. You may not even be able to wait a month. You’ll have to be patient in places like Machala and Playas.
5. Philippines. Philippines. Traditionally overshadowed, by Thailand and Bali to the north, but now gaining attention for its white-sand beaches, crystal-clear waters and sunshine all year round.
The peso has been the best-performing currency in Asia for the last three years. It is expected to be the same this year.
In the meantime, the country is still suffering from bad press due to political instability and bombings.
This is exactly the type of situation that we, as contrarian investors, look for.
The play is Boracay Island, located 200 miles south-east of Manila. Boracay, which is home to the first international resort on the island, the Shangri-La Resort and Spa opened this year. Boracay has become the jewel of the Filipino tourism industry. Boracay is attracting investors who previously invested in beach resorts like Pattaya and Phuket.
As I type, seven condo projects are under construction on the island. This is a small number when compared to the 110 new developments underway in Phuket. The government wants to limit overdevelopment, and so has put a moratorium in place on new constructions until July 2008. By then, a masterplan for the development of the island should have been finished.
The investors will be pleased to hear that the inventory is limited.
You’ll be paying around $2,300 per square meter right now for a condo that is unfurnished. Prices are expected to double within the next two or three years. When buying solely for investment purposes, I expect a return of at least doubling in the next two to three year.
This is also a market with a high demand for short-term rentals. The net rental yields range from 11% to 12 %.