When you think of income opportunities from international real estate, you probably think of two types of deals:

1. In a condo hotel like this one in Mexico, you get a fixed rent from the resort operator. You do nothing…except keep an eye out for your rent check to arrive.

2. Short- and long-term rental opportunities in a market like Fortaleza in Brazil. Here, there is a shortage of rentals. I expect this shortage will get worse.

These are just two strong income opportunities we heard about at the International Real Estate Investment Forum in Toronto. Both opportunities offer the prospect of capital appreciation, too.

There are other ways to generate income from real estate. Some of these deals were so exciting, I devoted an entire section of our two-day schedule in Toronto to discuss them. Here are some of the highlights:

Income Play #1: How about a 13% to 15% annual return on your money for 20 years? We heard from Colin about how you can do this…

Germany and The European Union have aggressive targets on increasing the percentage of energy generated from renewable sources. Germany’s target is that 20% of its energy should come from renewable sources by the end of this year.

To deliver, they need to offer pretty dramatic subsidies. They are doing this mostly on the demand side. The German government will guarantee to pay you a fixed price for solar energy you generate for the next 20 years. You have a guaranteed price and market.

The whole process is capital intensive. These solar panels are expensive. Colin has teamed up with a bank that offers 90% financing of all your capital outlay. Interest rates are low…again with government support.

Of course, your solar panels need to catch the sunlight for this to work. Colin’s contacts on the ground in Germany will secure the lease of the roofs of industrial properties. Partners on the ground will also be responsible for all maintenance and management for the duration of the 20-year lease.

We recorded the entire Forum, including Colin’s energy income presentation.

Income Play #2: Across the globe, the demand for food is on the rise. To produce a kilogram of beef, farmers need seven kilograms of feed (corn is commonly used). Increased demand for meat means much higher demand for the inputs such as corn.

This trend is happening at a time when supply is coming under intense pressure. Australia, one of the world’s largest exporters of wheat, is experiencing the most prolonged drought in more than 100 years. In the U.S., 20-million acres of land—formerly used to produce maize, wheat, soya, and other crops for food and animal feed—have been diverted to produce crops for heavily subsidized biofuels.

The demand for food isn’t going away…we all have to eat. Today, there are more mouths to feed than at any time in the history of our planet, and the middle class in Asia and South America continue to grow and demand more food.

Brazil’s high plains, the cerrados, cover 500 million acres. The United States Department of Agriculture has estimated that 400 million acres of this could be opened for crop production. The area yet to be opened for agricultural production is 25% larger than the total crop acreage of the U.S.

We heard from Chris on an easy way you can profit. This presentation is part of the recordings, too.

Income Play #3: Burma is the last country on earth with an abundant natural supply of this resource. Not the type of place you can, or want to do business though. Roll up Robert with a solid and ecologically friendly way to profit from the world’s emerging teak shortage.

I spend up to half my time traveling and scouting real estate opportunities. My most enjoyable work day was on Robert’s plantation in Panama’s southern province of Darien. The place feels like a 3D movie…beautiful but hard to believe it’s real. I saw stunningly colorful butterflies…and dramatic nature as an eagle swooped and grabbed a young monkey.

That’s not the point though. This is a beautiful but also productive place. This is a primo place to grow valuable hardwoods. As for the yields and income you can get…impressive! Get the full story when you listen to this presentation from the International Real Estate Investment Forum recordings.

Read the original article published by International Living here.

Ecuador has the least expensive real estate of any country on my radar. You can buy a high-end condo right on the beach for $100 per square foot. That’s $80,000 for an 800-square-foot condo.

In the mountains (where the weather is always spring-like) you’ll do better—$40,000 for a condo surrounded by towering volcanoes.

These are amazing real estate values. But with some effort you could do even better—there’s a way you might be able to get two beach condos…free.

Let’s consider a hypothetical example.

You and four friends…or family members…or partners get together and buy a beachfront plot of land just on the edge of one of Ecuador’s bustling beach towns. For $200,000 you could buy a parcel big enough to build 30 condos…say, 800 square feet each.

Each condo would have a view of the ocean. The only thing between each of these condos and the beach is the pool.
At a build cost of $55 per square foot, it would cost your gang of five $1.32 million to build these 30 condos. That brings the outlay to $1.52 million (land plus build). Each of you takes two condos. That leaves 20 condos to sell.
Beachfront condos like this sell for $100 per square foot—$80,000. That gives a sales value of $1.6 million. This covers the outlay for the construction and land acquisition in my hypothetical example.

Of course, this example is very simplistic. There are cash flow challenges…and sales and marketing costs aren’t included. Taking on any project like this involves some level of risk…and work.
Bottom line, though: This can be done. Do things right and you and your four friends can each walk away with two free condos…and have your initial stake returned.

I’m writing to you from Quito. On Sunday I set off on a five-day scouting trip of coastal Ecuador. Manta is my starting point. From Manta I’ll work my way north. Each day I’ll see pieces of land that would suit the situation I just outlined above. That’s pieces of land priced between $150,000 and $250,000 that would be suitable for a little condo project.
The plots I’ll be looking at are around Ecuador’s bustling beach towns. Places that would make for a great retirement or second home destination today.

However, my scouting isn’t limited to plots that would work for a small development. There’s also a stretch of coast I’ll investigate…a stretch that places us ahead of the Path of Progress and where some of the best land banking opportunities are.

Of Ecuador’s 1,400 miles of coastline, the most under-developed section of coast lies between Atacames and San Vicente. Semi-dry forest covers the hills. Pristine beaches extend along the coast.

Access to this stretch of coast is set to dramatically improve. This area will become the closest beach area to Quito and its new international airport.

Construction on a new highway that is being built from Quito to Pederanales is well advanced. It is due for completion this year. This has been the least accessible stretch of Ecuador’s coast.

Work is also progressing on schedule on the bridge from Bahia De Caraquez to San Vicente. Today it is 55% complete. It will be the longest bridge in Ecuador. According to Ecuador’s President this project is second only to Quito’s new airport in importance for Ecuador’s tourism industry.

Last year Ecuador’s Aerogal announced that it will reintroduce 737 flights to SanVicente/Bahia in September with a four-day-per-week service.

Put simply: This stretch of coast will become accessible. These projects are elements of the overall infrastructure plan which is to connect Manta with Quito going via Bahia with a four-lane highway.

The play here is to buy land and wait for the infrastructure and people to come. I’ll be looking at big pieces of land here. Some have miles of beach and many hundreds of acres. Find the right deal and this stretch of Ecuador’s coast is perfect for land banking.

Whether you’re interested in land banking, retiring, or just looking for an opportunity…this stretch of coast should be on your radar. I’ll file full reports of everything I see with members of Real Estate Trend Alert.

As you know, I run the rule over hundreds of real estate projects every year. In my personal capacity I am an extremely active real estate investor. Before I buy, I always appoint a trusted local attorney and rigorously follow my “12 Steps.”

We’ve compiled a Real Estate Trend Alert Members Report on these 12 steps. These are the critical things you need to know—and then do—before you make a real estate investment overseas.

Download your report here.

I strongly urge you to study these 12 Steps closely. Before considering any purchase you should re-read this report. This is valuable information gleaned from collective decades of experience. Colleagues spend most of their days filtering out projects that are defective in any of these 12 Steps. That’s why you only hear about 1% – 2% of the projects we look into.

It’s important for you as a real estate investor to arm yourself with the information to perform this analysis yourself.

Download your report here.

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.

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.

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.

Read the original article published by International Living here.

Weather, golf, beach and accessibility are the major drivers of Europe’s internal tourism and second home market. In fact, for both Spain and Portugal, golf is a bigger driver than beach. I understand this. I visit Portugal’s Algarve most years but I have never stepped foot on one of her beaches. I come here like many millions to golf.

I can leave my home town of Cork, Ireland on a dark dreary November morning and make an 11.00 a.m. tee time here. The last flight I took from Cork to Faro set me back 4.99 euro (excluding taxes). Budget airlines like Ryanair and Easyjet offer amazing accessibility direct to Algarve’s Faro airport.

The Algarve’s golf courses offer variety in terms of quality, difficulty, and price. Her beaches have the reputation of being among the finest in Europe. The coast here has been protected from sprawling distasteful development.

The sun shines for over 3,000 hours a year. Refreshing breezes mean July and August are comfortable. Winters are short, mild with fine and dry spells. Today it is sunny and 75 degrees.

This is why the Algarve is desirable for northern Europeans who want a vacation…or to buy a second home. As real estate investors, we care about this because it tells us that there is strong end-user demand. Restrictions on development have meant that there hasn’t been the overbuilding and over supply seen in parts of Spain.

While Portugal was spared these problems, it did experience a construction boom. Banks lent to developers to build. Developers built in anticipation that there would be no problem selling their units. They thought the good days could never end. Then everything stopped. Credit and financial crises hit. Sales dried up. Projects have been cruelly caught out. Banks are squeezing. Forced sell offs are happening quietly under the radar.

Today, there are distressed opportunities in Portugal. These are projects that, through greed or bad luck, mistimed the market. Discounts are being discretely offered. Incentives, like free fit out and paid transaction costs, are being thrown in.

In an effort to get themselves out of a bind, banks make the deal sweeter and offer up to 100% financing.

Sound interesting? It’s got my attention, too. That’s why I hop on a plane next week to see eight distressed projects and review the resale market in mature developments.

As always when looking at distressed opportunities, I’ll be following my three golden rules:

- Buy quality (location, construction, amenities and fit-out)

- Don’t take on any construction risk…buy completed units

- Don’t take on any project risk…make sure the condominium is functioning

Real Estate Trend Alert members will receive a full report of the best deals I find.

Construction at Sian Ka’an Mexican beach resort is progressing at pace—260 workers are onsite full time and construction of Phase 1 units is well on track. The developer’s team just showed me the photos below. Impressive progress in less than two months! I met them in Las Vegas for IL’s Live and Invest Overseas Conference. Phase 1 will be ready for occupancy in June. Prices here will continue to rise as these units near completion.

To remind you, these are the factors that separate this deal from anything else like it:

• A new airport is planned; 10 years from now, it is expected to carry as many passengers as Cancun airport.
• Appreciation potential: Prices here are at a 36% discount to what you would pay in Playa del Carmen, just 35 minutes down the road.
• Guaranteed fixed rental income: Your unit is leased to a 5-star hotelier, which pays you a fixed amount irrespective of whether it rents or not.

Occupancy rates at this resort have fully recovered to pre-flu scare levels. You see, this resort has a very important advantage. The company that owns it also own Europe’s second biggest travel agency. They sell and run 2.5 million vacations every year. They can channel their customers into their own hotels when things get tight.

The resort boasts all the amenities you would expect from a major high-end resort. The water here is turquoise blue…the beaches are white-sand. This is picture perfect Caribbean. The Robert Trent Jones II golf course opens for play this December.

The developer’s (Benjamin Beja’s) invitation to visit the project is still open. Benjamin believes in his project. He’s willing to put his money where his mouth is—all expenses paid. This is the same invitation I personally received when Benjamin first offered to show me the development. In other words, most visitors won’t receive this level of attention.

This is a RETA Members-only VIP Chill Weekend.

You can read my full report on this opportunity here. I strongly urge you to take Benjamin up on this offer. Many of your fellow members have. Many members have visited the site. Many have purchased here. All the reports I’ve heard have been enthusiastic.

As you know I am bullish on the real estate market in Fortaleza, Brazil. Fortaleza was Brazil’s #1 domestic tourism destination last year. Visitor numbers were up by 16% in the early part of this year. There is a hotel and short-term rental shortage. Soccer’s world cup is coming in 2014. Over $5 billion will be spent on infrastructure and tourism upgrade in the lead up to the tournament. Best of all there is a limited supply of developable land in the prime boardwalk area.

The type of real estate I recommended to members of Real Estate Trend Alert (and bought myself) have been pre-construction deals in these prime areas. We got in with preferential terms such as a 1% down payment with monthly stage payments of 1%.

Real estate in Brazil is priced and sold in the local currency—reais. Buying a condo for BRL 190,000 involves a down payment of BRL 1,900. You then make monthly payments of BRL 1,900. Today BRL 1,900 is $1,060. Who knows how many dollars the payment of BRL 1,900 will be next month?

Locking in today’s exchange rate would seem like a sensible option to make sure you know what your cash flow will be. Here’s a way you can do this:

Move your U.S. dollars or other currency into a Brazilian real (BRL) CD and you will lock-in today’s exchange rate while earning 5% interest on the BRL deposit.

Some members of Real Estate Trend Alert do this. I wrote to them about this early this year. This is an e-mail I recently received from a member:

“I hedge the Brazilian currency through a Brazilian Real CD account. I did that for the Beach Class project….Had I not done that, I would have lost nearly $18,000 just in the first few months! Instead, I hedged the currency so it has not cost me anything above what I budgeted, and the property has appreciated $18,000 and I have earned about 7% on my money!”

The real isn’t forward traded. You can’t hedge using a forward contract. That’s why a BRL CD is the best way to lock in today’s exchange rate, fix your monthly payments in $ terms and see your real deposit accumulate interest.

This June, Fortaleza, on Brazil’s northeastern coast, was named as a host city for the 2014 soccer World Cup. In 2013, Fortaleza will host the Confederations Cup. Property investors should pay attention—this is a fantastic opportunity to profit.

The build up to 2014 will see dramatic infrastructure upgrades in Fortaleza, as well as a tourism boom and global exposure. The government is investing 9.8 billion reais ($5.5 billion) and infrastructure projects there will get 63% of this spend. I’ve just returned from my eighth scouting trip to Fortaleza in 16 months. I was there to figure out how we can profit.

In Fortaleza, I found a market that is already benefiting from the World Cup effect. The two five-star hotels (the Gran Marquise and Hotel Luzeiros—both located on the boardwalk) were full…and this is the low tourist season. Demand for high-end accommodation has already been growing for the past 18 months. Companies involved in or pitching for projects associated with the World Cup arrive in town weekly.

Foreign investors looking to profit are increasing. Mostly from northern Europe, these guys have seen this trend before. Property prices in South Africa rose by 35% in 2005, with the country’s hosting of the 2010 World Cup a major factor.

There’s a buzz of excitement in the air. R850 million ($480 million) will be spent on tourism projects: gentrification of urban areas and installing attractions like the state aquarium. And a large sum will also go toward things you’d expect: improved Internet access, new equipment for the hospitals, and so on.

The governor has released a list of projects that will be delivered. Many of these will start immediately. This represents an immediate injection into the local economy, and will fuel demand for short-term rentals in the city. Specialist skills will need to be brought in from outside Fortaleza, and these people will need somewhere to stay.

The Fortaleza area is going to see a major upgrade in road (there will be a new ring road), rail (Fortaleza is getting a metro system), bridge, port, and airport infrastructure. This will make certain areas more accessible and desirable, and will drive up real estate prices in these areas.

Many of the projects on the governor’s list could create an opportunity for you to profit.