We all know that investing your money in one basket can be detrimental for one’s financial health. In 2020, the stock markets have been volatile and a lot of people have lost or made money during this time. It is best to diversify your investment portfolio and buying real estate is one of the best ways to do it.
The US dollar is currently really strong. It is therefore a better investment to purchase real estate in other countries. Buying overseas properties can offer another level of safety if the US real estate market fails again like it did in 2008.
It is best to buy property in a country that you like to visit for holidays. Another option is to purchase real estate in the southern hemisphere as a means to get away from the chilly winters in America.
There are many countries where real estate is really cheap. But you have to remember that renovations in some nations can be a costly affair. Additionally, construction standards may not match up to the U.S. standards and sourcing of materials can be tedious and expensive. If you have connections in a country of choice or have the skills to renovate, then it is best to go ahead and purchase property during this period. When the prices rise, you will churn a big profit.
If you plan to keep the purchase as a long-term investment and a vacation home, then it is best to learn the local language of the country. This will allow easier assimilation into the local community and better comprehension of the culture and lifestyle.
Listed below are the top 5 countries where real estate is unbelievably cheap.
Five Countries with the Cheapest Real Estate Rates
- Italy
Italy is a developed country with a Mediterranean climate. Hence, you will be able to easily source high-standard building materials as well as avail of quality builders and real estate developers. The country has been financially hit by the Covid-19 pandemic and real estate has become really cheap in some regions outside of the major cities.
Sardinia Island is one such region in Italy where you can invest in property. In fact, in Ollolai town in Sardinia, houses are being offered for 1 Euro by the mayor. Young people have fled to cities in search of work and the town has become desolate. So this is one of the ways to renew the population and prevent the town from dying. The catch to the incredible offer is that buyers need to spend a minimum of $25,000 to renovate the property within 3 years of purchase. Also, it cannot be sold for a period of 5 years.
Abruzzo is a charming countryside located east of Rome. It is another place where you can purchase property for as low as $50,000. The region has hot summers, delicious cuisines and wines, beautiful stone houses, and snow-capped mountains during winters. The price is right and the place is great for vacations. When back in the US, you can rent out your property and keep the money flowing in.
- Brazil
Beachfront properties in tropical destinations, especially tropical islands, are much sought after. However, they can be very expensive. In this case, Brazil offers an opportunity of a lifetime.
Brazil is a rapidly developing nation with some amazing seaside towns. The beaches are soft and sandy, the waters are crystal clear and turquoise blue, and the weather is tropically warm.
Itamaracá Island has beachfront condos that can be purchased for as cheap as $50,000. Inland properties are cheaper. The nearest airport is just an hours’ drive away. The island is flush with tropical vegetation and offers all basic necessities of life. It however does not have any shopping malls or other such modern amenities.
Via Velha is another beachfront city located north of Rio de Janeiro. Known as Little Rio, there was rapid development in this beach-town before an economic downturn left many properties unsold. Thus, you can buy real estate for a bargain price in Via Velha. Compared to Rio it has less traffic and less crime, but equally, if not more, enjoyable relaxation sessions at the beaches and the fresh outdoors.
- Ecuador
Ecuador is of the last unexplored countries in a globalized world. You can opt for mountain living or beachfront properties. Weather is great from November to April, while it is cool, cloudy, and dry for the rest of the year.
Located in the southern Andes, Cuenca city is an expat favorite. It features colonial-style Spanish architecture, cobbled streets, and good infrastructure with all modern amenities. Real estate as well as cost of living in Cuenca is cheap. Real estate prices in premier areas of the city are more expensive as compared to areas with less population. However, selling property in the former is easier than the latter.
Towards the far western end of the country lies the seaside town Salinas. It is one of the more developed regions in the country and even has an airport. You can spend your holidays here and rent out your property for the rest of the year.
Loja is a town situated at a high altitude in the Andes. You can easily purchase a 4-bedroom house in Loja for just over $114,000. This place is not frequented by tourists, but you will enjoy the fresh mountain air and incredible views of the Andes. Land is also really cheap; you may buy some acres and indulge in gardening or farming.
- Mexico
A lot of popular seaside towns in Mexico have seen a rapid rise in real estate prices due to investment from the US. If you like living in the mountains, then Mexico still has a lot of towns and cities with cheap properties, warm weather, and authentic Mexican lifestyles. One of the major benefits of investing in Mexico is that it is a neighbor country and a short flight away from the US.
Located in Veracruz State, about 199 miles from Mexico City, Xalapa is a town surrounded by mountains and volcanoes. It has a small expat community and property can be purchased for just over $39,000. You can do a lot of things as Xalapa has shopping options, rich cultural living, hangouts, and great restaurants. This is a place for long-term investment as real estate prices are not going to rise in the near future.
Situated in northwest Mexico, Alamos is a quaint town with cobblestone streets, mansions, rustic countryside, and a mountainous backdrop. You can purchase basic homes for as low as $35,000 and even authentic colonial mansions at bargain prices.
Durango has been known as the place where old Westerns were shot. The city offers a taste of authentic Mexican lifestyle, cool temperatures at night and between December and January, European Spanish architecture, cleanliness, and a modern vibrant city life.
- Colombia
Cartagena and Bogotá in Columbia have been attracting foreign real estate investment for quite some time now. Hence, these cities have become expensive. But there are a lot of other cities and towns that have cheap properties worth investing in.
Prices of real estate in Medellín have been steadily increasing, but due to a strong dollar against the Peso, investment continues to pour in. The town has a sizable expat community, spring-like weather, and strong infrastructure with great public transport system. El Poblado and the nearby Belén town are great places to buy real estate.
Known as the salsa capital, Cali is a green town located in southern Columbia. It is located at an altitude, but the weather is warm all through the year. Crime is a problem, but it is isolated to certain areas of the town. Properties are cheaper than Medellín. A large percentage of the town is safe. It even has an airport with daily flights to the US.
Located at a short distance from Cartagena, Santa Marta offers just about everything that Cartagena provides but at a much lower price. The only difference being the former being a sleepy, peaceful place while the latter is a party town. Santa Marta has colonial-style houses, great dining, and good shopping options. It is surrounded by a national park, the Caribbean Sea, and the Sierra Nevada Mountains; thus a fabulous place to enjoy the outdoors.
