The 4 Best Real Estate Investments for 2010

Written on December 7, 2009 – 5:04 am by International Living

By Ronan McMahon
For International Living

Next year is going to be the most exciting one real estate investors have seen in a decade. I’ve got my eye on four spots, in particular—diverse opportunities around the globe, each of which represents an excellent value play.

1.) In Brazil, I’ll show you a way to capitalize on that nation’s continuing boom, particularly along the North-East coast.

That region boasts some of the world’s most glorious beaches. With big infrastructure projects on the horizon, it’s an area where the already-increasing property prices are going to spike in the months to come.

2.) In Europe, projects and banks are in deep distress. That has created pockets of opportunity where you can buy quality cash-flow property for 50 cents on the dollar in prime European cities.

3.) In Costa Rica’s southern zone, a new coastal highway is set to open in 2010 and an airport is on its way.

With improved accessibility, property prices here will increase, just as they have elsewhere in the country when better roads have gone in.

4.) And in safe, stable, cultured Uruguay, there is an undiscovered stretch of coast big international developers have just begun to snatch up.

Rich Argentines have been coming here for generations—but keeping the secret to themselves. The best beaches and seaside towns in Uruguay are here. And now’s the right time to stake a claim.

These are the four markets I’ll be keeping the closest eye on in 2010.

Categories: Crisis Opportunities, Opportunities in Brazil, Opportunities in Costa Rica, Opportunities in Europe, Opportunities in Uruguay | Tags: , , , , | No Responses

Caldera Highway Opens Up Costa Rica’s Pacific Coast

Written on November 25, 2009 – 8:51 am by International Living

By Ronan McMahon
For International Living

Read the original article published by International Living here.

Regular readers know how bullish I am on the opportunities in Costa Rica’s Southern Zone. This is the area that runs south of Quepos to the border with Panama on Costa Rica’s Pacific side. The scenery is amazing, but prices have stayed low because it was difficult to get to.

I have been telling you that this was set to change. Now it has. This is important because, as you know, anything that improves the accessibility of a piece of real estate increases its desirability. More desirable means more valuable. Friend and developer Steve Linder put the new road through its paces first thing this morning and sent me the above photo.

Steve followed with an excited call: “I cannot believe it’s actually real…I have been waiting for this day since I started coming here 20 years ago!”

The new Caldera toll road from San Jose to Puntarenas is now open from Orotina all the way to Puntarenas. It’s a toll road that will only set you back only 85 cents. The final section between Orotina and Ciudad Colon is expected to be completed by early 2010.

Five new bridges were built. Dramatic scenery is why I expect this coast to take off, but it also means that this highway was a major construction undertaking. The new road runs through steep valleys and rivers in the mountains west of San Jose.

On the southern coastal highway known as the Costanera extension between Quepos and Dominica the final finish coat of pavement is now being installed. Less than three miles remain unpaved and most of this section is nearly ready for paving.

The drive time on this section has been reduced from several hours to less than an hour. This area is now easily accessible.

All the major bridges from Jaco to Dominical are now complete and open. Just two years ago all traffic had to drive through the two rivers. Sometimes this was impossible during the rainy season. The new bridge in Parrita is open, so visitors no longer have to wait at the one-lane antiquated bridge to cross the river. (The weekend traffic to Quepos and Manuel Antonio would often back up for hours.) The bridge across the Sevegre River has now been widened to two lanes and the bridge across the Naranjo River just south of Quepos is finished, too. The only bridge left to be completed is the one-lane bridge by the town of Hatillo, which was only built a few years ago and is close to Dominical.

As soon as word gets out that this area is now quickly and comfortably accessible…prices are set to rocket.

Steve’s real estate project, Pacific Lots, is three miles from the town of Ojochal. The upgraded road passes right in front of the town. This is the heart of the country’s Southern Zone.

Ojochal feels quite cosmopolitan for a place that has been so out of the way until now. You have a choice of restaurants—Swiss, French, German, American, Italian. You can buy freshly baked bread or enjoy a pizza from a wood-fired oven. A deli stocks imported cheeses, wines, and other culinary treats.

Pacific Lots is the “gold standard” project in this area. A mature development, with more than 100 homes already constructed, and it’s fully serviced with roads, water, electricity, satellite TV, Internet, and a modern communications system. You don’t have to rely on the developer’s promises. You can see it and touch it.

There is no build requirement. You have full flexibility. When you decide to build, a skilled team of professionals will be at hand to help you out.

Today, construction of this quality and standard will cost you in the region of $90 per square foot. You can build on your own or else use the custom construction and design services offered by the team at Pacific Lots.

Their team of architects, engineers, concrete masons, master woodcrafters, painters and interior designers can help you build the house of your dreams. They’ll hold your hand. You can see the work they have already done. You can ask your potential neighbors to share their experiences.

Pacific Lots gives you the best of both worlds. Buying in this area puts you ahead of the Path of Progress. Pacific Lots offers this upside with the additional upside of a project that is mature and functioning.

An equivalent lot in Northern Costa Rica could cost you six times what you would pay here. You can still buy a lot here for $40,000.

Thing is: it’s nicer here. Strict environmental regulations will limit development. New projects are finding it difficult to get off the ground.

I strongly urge you to request a full information pack from Steve and visit Pacific Lots before the world catches on.

The new international airport planned for this area is just 20 minutes away from Pacific Lots. Remember what happened in Liberia in Northern Costa Rica when direct flights from the U.S. started arriving in 2002? Prices went through the roof.

Categories: Opportunities in Costa Rica | Tags: | No Responses

Costa Rica’s Next Two Up-and-Coming Hot Spots

Written on November 9, 2009 – 9:25 am by International Living

By Ronan McMahon

As an investor, you may think of Costa Rica as “old news,” but two areas of that country deserve a look today as they’re well-positioned for a boom. I’ll explain why in a moment. But first, a little background.

In the early 1980s, International Living recommended buying real estate in northern Costa Rica. This part of the country became the No. 1 destination among foreign retirees and investors. Through the 1990s, the market boomed. Prices for beachfront property along the Pacific coast increased 10-fold. Today, you could pay $600,000 for a half-acre ocean-view lot.

But there are nicer parts of Costa Rica that haven’t yet been discovered—where you can buy a three-quarter-acre lot in a high-end gated community for $39,000, and build a 1,400-square-foot house on it for $100,000.

There are two areas that should be on your radar. The first is Costa Rica’s southern zone.

I believe southern Costa Rica (the area that runs south of Quepos to the border with Panama) is more beautiful than its northern counterpart. There is more land preserved in national parks and reserves in this region than in any other region in the country. Ballena National Marine Park is a hotspot for humpback whales. Corcovado National Park has one of the largest areas of primary rainforest left in the Americas and is home to a number of endangered plant and animal species. The beaches are mostly deserted.

In a country with an established property and tourism market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. You would expect to pay a premium to have a home here.

However, prices have stayed low here for one reason: This area has been difficult to get to. The Costanera highway is unpaved between Quepos and Dominical, and the airports are small, local affairs. For 30 years, Costa Rica’s presidents have been promising to rectify this infrastructure deficit. This time it’s really happening.

A new paved road will be in place by next year. It’s almost complete. President Oscar Arias Sanchez has personally visited the project. The new highway means that the 90-minute (or longer) trip from Quepos to Dominical will be cut to 25 minutes.

But there’s more. Costa Rica’s government has settled on Palmar Norte as the site of a new international airport, and has allocated funds for construction. The airport is planned to open in stages; the first stage, in 2011, will allow international flights with a maximum capacity of 50 passengers. The plan is to eventually have a runway capable of accommodating even the world’s largest passenger plane, the Airbus A380.

The second area that should be on your radar is Limon. The drive east from San Jose to Costa Rica’s Caribbean coast is through some of the most inspiring scenery you’ll ever see. The sand is white, the water turquoise. Back from the coast are the Talamanca mountains. The breeze is fresh and the wildlife abundant—70% of the coast is protected. Yet you are only two hours from San Jose’s international airport…with direct connections to the U.S.

A planned billion-dollar gentrification project is going to transform the forgotten port town of Limon into a major Caribbean hotspot. The president was also recently in Limon to announce an $80 million investment that will kick-start the upgrades. The cruise ship port in neighboring Moin is set for a major upgrade.

Categories: Opportunities in Costa Rica, Opportunities in Emerging Markets | Tags: , | Comments Off