Saturday, September 12, 2015
The best thing about my job is the places it takes me. I've dined al fresco on the world's most spectacular beaches, bounced across aquamarine lake waters on a speedboat, taken mountain roads to white-washed villages where time stands still…
My mission is simple: To find profitable real estate opportunities. And since founding my Real Estate Trend Alert service I have come across plenty…many of them in stunningly beautiful locations.
A Piece of Paradise – There's a place so beautiful in the Caribbean that pioneers rode on donkeys to reach it. Back then, Las Terrenas in the Dominican Republic was little more than a stretch of unspoiled coastline with friendly locals and stunning white- and tan-sand beaches.
Today it's still a special place. It's picture-perfect Caribbean: 19 miles of beach...turquoise waters crashing against reefs...and palm trees swaying in the breeze.
Unsurprisingly, it's a destination that commands strong rental yields—among the strongest on my entire beat. European vacationers flock to Las Terrenas and there's almost a year-round demand for rentals. Here's a taste of why:
It's popular with European tourists—those pioneers who came first were from Italy and France. They brought with them culture and food. That lends Las Terrenas a European vibe. You can buy a gelato to enjoy on the beach or have lobster or paella for lunch. But increasingly, more North Americans are coming, to escape the cold winters of the U.S. and Canada.
It's easier than ever to get to—no donkey ride needed now. El Catey airport just 25 minutes away has direct flights from JFK and—when I last visited—I ran the rule over one condo steps from the beach that was selling for just $188,000.
It's a two-bedroom luxury property in a little community at the end of a road. It sits among landscaped gardens and feels private. A gentle stroll from here is my favorite beach in all of Las Terrenas. Or some charming and excellent restaurants—including one run by a former presidential chef in France.
Most owners in this community are well-heeled; they want to keep their place for themselves. Because of that, rentals here are in hot demand and limited supply.
The $188,000 condo has been snapped up—but a small number of similar condos are still available.
The buyer of that condo could expect a strong rental yield. During the North American winter, a condo in this community could rent for $250 per night. But let's be conservative about it. If the owner charges $200 a night for this condo and rented it for 100 nights (less than a third of the year), that's a gross rental yield of $20,000—10.6%.
Not surprising when you see what this charming beach town has no offer. There are no high-rises, big-box stores, or chain restaurants. Just miles of beach to walk, plenty of sunshine, and great food.
Spain – One of the busiest tourist locations on my beat is Spain's Costa del Sol. Visitors come from all over Europe to enjoy its 300 plus days of sunshine…or to golf one of its hundreds of courses. Almost 13 million travelers fly into Malaga each year.
I've been keeping a close eye on Spain for years…and making regular trips since 2009. It's a place I like to spend time; it's cultured, friendly, and atmospheric. Though Spain suffered hard from the recession, the banks were slow to sell off real estate. I waited for the right moment to recommend a buy.
Last March, I found an opportunity close to the luxurious Puerto Banus near Marbella in southern Spain. It's where Europe's elite go to burn off steam. You'll see supercars parked here…and yachts moored in the harbor. It's the epitome of luxury.
Seven minutes from here, I recommended condos with no brainer pricing: $129,000. As I expected, they sold out fast. Today, a condo that would have set you back $129,000 last March now lists for €195,000 ($216,761). Rental demand for these condos is strong.
Long-term renters will pay €900 ($1,000) to rent for a month long-term...or €750 ($833) per week short term. There are plenty of both long- and short-term renters.
Rent long-term for a year and that's a rental yield of $12,000. Those condos are no longer available at that bargain pricing…but there are still pockets of opportunity on Spain's Costa del Sol. And plenty of opportunity to command a strong rental yield.
Riviera Maya – I've saved the best for last—the destination with the strongest rental income opportunity on my beat. Mexico's Caribbean coast—known as the Riviera Maya—has marked itself out as a best-in-class location for rental yields.
This is the quintessential Caribbean—endless, blue sea and even bluer skies, miles of natural beauty and wildlife, and cold beers on the beach. But it's packed with amenities and reachable along a modern highway. No “roughing it” required to enjoy your time here. And more and more vacationers are coming every year.
I've found some great opportunities to buy here in the past few years…all at prices that have appreciated. Those opportunities threw off some strong rental yields.
One exciting new opportunity recently reached my desk. Here buyers could lock down what could be one of the best rental opportunities I've ever found. They could buy a condo pre-construction for less than $160,000. Then, once the community it's in is up and running, command $1,000 for a week's rent. Rent for just 20 weeks a year and that's $20,000 gross rental yield—or 12.5%.
I've just sent members of Real Estate Trend Alert my full report on this deal—and you could read it instantly when you become a member…as well as locking down an exclusive discount.