International Living Postcards—your daily escape
A vacation home doesn’t need to be a major expense. In fact, if you follow the golden rules that real estate expert, Ronan McMahon, details below, your second home could end up making you money.
He’s brought you two of the best opportunities in the past few days. And today, he tells you about three more. Finding these deals—and securing special members-only pricing—is just part of what he does for the Real Estate Trend Alert.
Managing Editor, IL Postcards
P.S. Ronan McMahon comes to you courtesy of Pathfinder, International Living’s preferred real estate advertiser.
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3 More Beach Homes That Can Earn Their Keep
By Ronan McMahon
Over the past two days, I’ve told you about three white-sand Caribbean locales where you could turn your beach home into a nice little earner.
Places where there’s a plentiful supply of renters who will pay you up to $100 per night. Crucially these are places where your rentals are in demand year-round. You don’t have to rely on peak season to generate your rental income. That means you are free to pick and choose any time of the year to spend time here.
One owner I know is a great example of this concept in action. He bought in Costa Rica’s Southern Zone, an untapped market where you’ll find bright, thick, green jungle canopy that rolls down to a coast of sandy beaches and rocky points. It’s truly stunning.
A new smoothly paved coastal highway has made it easy to get to, increasing the flow of tourists. But, despite this and its beauty, prices are still low...but the rental market is strong.
He owns a three-bedroom, three-bathroom house (with its own pool and landscaped gardens). He’s managed to rent it for 48 weeks of the year at a weekly rate of between $1,500 and $2,500. He bought his lot and built the property for $255,000. It’s since grossed him $88,000 in rental income in one year alone.
Tourism is on the up in the Southern Zone and rental demand is growing. But, Real Estate Trend Alert members can still pick up a bargain by taking advantage of members-only pricing.
Like $40,000 for a quarter-acre, mountain-view lot that lists for $50,000. You’ll need to figure $100 per square foot in constructions costs. But, you don’t need to build straight away. You can sit on your lot until you are ready to build. When you do, you can use it when you like and have it as a nice little earner when you’re not using it.
I show members of the Real Estate Trend Alert where to find these opportunities all the time—like the three more I describe below:
I’ve told you already this week about Las Terrenas (where one member of Real Estate Trend Alert can lock down a condo for $106,000). I know of an owner who frequently visited the beach home he bought there and was still able to net an 8% return even after he paid his costs.
This guy isn’t lucky nor does he have any particular special skills. He just knew the golden rules:
· Buy cheap.
· Buy in a place where there’s strong year-round rental demand and where demand is likely to grow.
You’ll find another of these opportunities in Brazil, a country whose economy is on the up—as is its real estate potential, in particular along the miles of white-sand beach on her north-east coast.
Charming beach towns dot this coastline. Of these, Cumbuco is my favorite.
The streets are lined with fishermen’s homes. Bright flowers crawl over freshly painted exteriors. You’ll find Italian restaurants, a German grill, a trendy kite surfing shop and beach bars to enjoy caipirinhas (Brazil’s national cocktail) at sunset.
It’s close by to Fortaleza, a First-World city of three million people. It gets more domestic tourists than anywhere else in Brazil...and tourist numbers are growing...from South America, Europe and now the U.S.
On the western edge of Cumbuco, you’ll find a charming gated beach community, five minutes by beach buggy (that’s the easiest way to get around) from the center of the village. It’s close to a new five-star resort...where you could pay over $400 a night for a room.
The rental market is strong. Even folks who live nearby like to come to a beach home for the weekend. Next door at the Villa Gale resort, a two-bed condo could set you back more than $200,000. Here you could buy a lot and build a little beach home for a total price of $160,000. And, charge higher rents.
You’ll find likewise in Nicaragua’s most prestigious high amenity community. The rental demand here extends throughout the year. Even in the rainy season, when most vacationers stay way, surfers want to come. Beachfront condos here rent from $400 per night. A friend rents his home for $350. He picks and chooses when he visits—usually at least four times a year.
It’s a beautiful place. Vertical cliffs drop to flat rocky plateaus. Some of the world’s best surf breaks and beaches are here. You’ll find sandy beaches perfect for swimming and rock pools where you can bag the freshest lobster of your life.
Because of a special situation one member of Real Estate Trend Alert was able to lock down of big lot of 1.37 acres here with some ocean views for $32,000. The seller needed cash now.
Deals like this cross my desk almost every week. And, members of Real Estate Trend Alert hear about them that day when the opportunity is this strong.
You don’t have to be smart or lucky to do this. Just buy low in a place where rents are high and in year-round demand...that you’ll want to spend time in, too.