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The six best beachfront purchases you can do right now

Will Rogers’ investment strategy is as strong today as it was nearly 80 years ago. The problem is that, for the next eight decades, people have been aggressively buying waterfront. So … what do you have left?

To be sure, it is becoming increasingly difficult to find a coastline worth owning for sale at prices worth paying. However, our editors have identified six places where the beach is special and underrated:

1. Panama. You know the many reasons why Panama remains one of the best places to invest your money in real estate (your money for retirement and second residence as well).

The problem is that Panama hardly qualifies as unknown. Could, therefore, your beach be undervalued?

Yes, in certain regions. Not within walking distance of the city for commuting to work. These weekend getaway beaches have rapidly risen in value, exchanging hands between local and foreign buyers for more than a dozen years.

And not in Bocas del Toro, in the Caribbean, where, again, American developers, agents and buyers have created a bubble.

Veraguas. That is the place to look right now. This large province about three hours west of Panama City hides the best shopping on the Pacific coast in all of Central America.

Also, remember, Panama uses the US dollar as its currency, which means there is no exchange risk.

2. Dominican Republic. The cheapest Caribbean beach you can buy today. I mean the quintessence of variety beach that, for many, defines the word. Soft white sand bordering gently lapping emerald water. The same white sand and emerald water found in St. Lucia or St. Barts, only at a much more attractive price, whether you’re a future second-home owner or a speculator looking to switch quickly.

The best opportunities are in the Samaná Peninsula. The spotlight is on Cap Cana (where The Donald is developing Trump in Cap Cana). That’s why, instead, you want to focus your attention on the northwest (to Samaná). This lush green region has more than 20 miles of white sand coastline.

Look specifically around Las Terrenas, today little more than a small fishing village, which is part of the attraction. The expat community here of 2,500 is growing rapidly. You can buy a condo on the beach for $ 2,600 per square meter or one with an ocean view for $ 2,100 per square meter. Rental yields are above average, 6% to 8% net per year.

The undeveloped beach is remarkably affordable. Where else in the Caribbean can you buy premium white sand with amenities for as little as $ 40 per square meter? Hillside lots start at $ 20 per square meter.

3. Uruguay. Like Panama and the Dominican Republic, Uruguay’s oceanfront real estate market is not primarily dependent on American buyers, an important point to keep in mind if you are buying with an investment agenda today.

In Uruguay, we have two specific recommendations, the first for investment, the second for part-time life or retirement.

First, the investment choice: Rocha province. Both tourists and buyers have concentrated to date in Punta del Este in the neighboring province of Maldonado. Rocha, to the northeast, has equally attractive beaches. And, as Punta del Este and its surrounding resorts expand, it is these beaches in the Rocha province to the north that will benefit from the spill. Also, for Brazilians (who make up a good part of the Uruguayan market) who drive south to the safe and cheap beaches of Uruguay, Rocha means less travel time.

Second, the lifestyle game: Piriápolis, with its beautiful bay, its picturesque boulevard (or promenade), the society of cafes, the great old hotels and casino, and the first-class marina. We believe that real estate values ​​in Piriápolis will appreciate in the coming years; Still, the attraction here is really the lifestyle. This is a safe, relaxed and friendly place, a throwback to small-town America half a century ago.

Piriápolis is also home to the only private residential community of its kind in the entire country, the current project of friend David James. David’s Sugar Loaf Ocean Club and Spa is not located on the ocean, but all residents will enjoy spectacular ocean views, as well as high-end services and amenities … at very low prices.

4. Ecuador. Ecuador’s coastal market, specifically around Salinas, Montañita / Olom and Manta, is on fire. This is a place to shop for instant investment gratification. Properties, our on-site contact reports, are bought and then invested the following month for 20%, 30%, even 50% profit and more.

Well … that level of activity sets off alarms. Keep your wits about you.

In Salinas, buy a condo, either finished or pre-built, for both capital appreciation and return on rent.

If you have a little more patience, look in the more remote coastal regions where it is possible to buy for as little as $ 3 to $ 5 per square meter. This translates to $ 30,000 to $ 50,000 for two and a half acres of waterfront property. Overtake that.

However, remember that this is a much longer-term play. You are buying in fishing villages, small and forgotten stretches of coast that you will enjoy, our sources advise, considerable appreciation but that right now they have no services or comforts. You won’t see the benefits here in a month or even a year. In places like Machala, Playas, Manglaralto, Canoa, and Jama, you must be willing to wait three to five years or more to get out.

5. Philippines. Historically dwarfed by neighboring Thailand and Bali, the Philippines, with its powdery white sand shores, crystal clear waters, and year-round sunshine, is starting to attract attention … and tourists.

Over the past three years, and for the first time since the 1970s, the country’s economy has experienced an annual growth rate of at least 5%, and last year the peso was the best performing currency in Asia, an award that is expected. win again this year.

Meanwhile, the country continues to suffer from a case of bad press, thanks to political instability and bombings.

In other words, this is the kind of situation that opposing investors seek.

Boracay, an island 200 miles south of Manila, is the work. The island’s first international resort, the Shangri-La Resort and Spa, opens this year, and Boracay is emerging as the jewel in the crown of the Philippine tourism industry. Investors in the region who have historically invested their money in beach resort regions such as Pattaya, Phuket, and Bali, are looking to Boracay today.

As I write, seven condo projects are under development on the island, a very small number compared to the 110 new projects underway in Phuket, for example. The government is keen to control overdevelopment and has imposed a moratorium on new construction until July 2008, by which time a master plan for development on the island is expected to have been completed.

This type of limited inventory is, of course, other good news for the investors among us.

Right now, you’ll pay around $ 2,300 a square foot for an unfurnished condo. We expect prices to double in the next two to three years. (When buying for investment only, this is the level of return I am looking for: double in two to three years.)

Furthermore, it is a short-term rental market where demand far exceeds supply and net rental returns range from an attractive 11% to 12%.

6. The Caribbean coast of Costa Rica. I have ignored this side of Costa Rica since 15 years ago (my most recent visit to the “other” coast of Costa Rica) my rental car was robbed and my backpack and camera was stolen, at noon, at one of the busiest streets. in Limón.

Again, that was 15 years ago. However, I have been biased ever since and have easily believed reports that this part of Costa Rica is too unsafe for smart foreign investment. Friends and contacts in the country today tell me that my position is completely wet. Or at least dated. So I’m getting ready to take another look.

I can tell you by heart that the beaches are beautiful, and I can tell you from recent reports that I am confident that they are much less expensive than their Pacific coast counterparts.

I can’t tell you who is buying, why, where specifically, at what volumes, and with what exit strategy in mind. Look at this space.

Peddicord kathleen

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