5 Of The World’s Best Places To Buy A Second Home In The Sun
Which overseas property markets should have your attention this shiny new year? The world is alive right now with markets in crisis and markets benefiting from the strong dollar (and the weak euro).
Specifically, here are five places where you could get a great deal on a second home in the sun, a holiday escape that you could rent out when you’re not using it yourself, or retirement digs all your own in the Shangri-la that’s calling your name. Each of these places also qualifies as a top retirement option for 2015:
A chart of Argentina’s economic activity over the last century could have been used as the blueprint for one of the roller coasters I rode with my kids at Universal Studios in Orlando last week. Up and down, up and down, right now this market is way down, very close to another bottom. The last bottom was 2001. I bought three apartments in Buenos Aires in the wake of that collapse, and I’m watching now to see what I should buy in the wake of the collapse now upon us (I guess I should say the collapse now upon the Argentines).
Don’t let this country’s manic economy scare you off. The big downs are always followed by nice ups. Meantime, life in Argentina is never dull. This is one of the most dramatically beautiful and interesting countries in the world, and Buenos Aires is one of the world’s premier cities. Investing successfully in a place of your own in Argentina is all about timing, and the time again is now.
What to buy? An apartment in Buenos Aires is a good place to start. This city is home to a big inventory of classic-style apartments you find in only a few places around the world. Also consider vineyard opportunities, specifically in Mendoza, one of the best places in the world to embrace life among the vines.
Turkey, Specifically Istanbul
Turkey’s property market wasn’t hit as hard as others around the world in 2008 and 2009. Values in some districts of Istanbul dropped by maybe 25% at the height of the downturn (about the same as in Panama) but in just a year-and-a-half prices recovered. That rate of appreciation (10% to 15% per year on average) continued through 2014 and is expected to carry on indefinitely.
Despite these impressive rates of appreciation, Istanbul real estate remains a bargain compared with other global-standard cities. With a starting market price of around $1,000 a square meter, middle-class housing in the Turkish capital can be an excellent bargain.
What’s driving the continuing appreciation in property values? Inflation is one factor; another is the GDP growth rate, which has been 4.5% to 5%. However, the compelling explanation for why property prices have been going up as quickly as they have been is a big and growing local demand.
Half the population of Turkey is younger than 30 years old. The country sees 350,000 weddings a year. All these new couples want places of their own to live. And, thanks to a strong economy and relatively low unemployment, more…