8 Affordable, Up-and-Coming Locations To Buy Vacation Property Abroad
If you’re considering buying a second or vacation property in 2023, there are a few things to consider. Not every location has the same offerings, and the cost of real estate can be much higher — or lower — in one place over another. Plus, with rising mortgage interest rates and limited inventory in many areas, finding affordable property could be a struggle.
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But that doesn’t mean you can’t do it. Whether you’re looking for a waterfront vacation property or something up in the mountains, there are options. And, if you’re interested in extending your search to international locations, you might still be able to find something that fits your budget.
Before you go looking for a lender or real estate agent, here’s what you should know about buying vacation property abroad this year.
Top Places To Buy Real Estate (at a Reasonable Price)
Here are the top locations where you can buy an affordable vacation property in 2023 — domestically first, and then abroad.
United States or Canada
“If you prefer to stay within the United States and have a limited budget, domestic locations such as Colorado, Florida, or California may be the best option,” said Shaun Martin, owner, member, and CEO of We Buy Houses In Denver. “In North America, major cities such as Toronto and Vancouver offer great real estate opportunities due to their high population density and growing job markets.”
Filippo Incorvaia, founder of FI Real Estate in Miami, added, “Focusing on my main area of expertise and experience as a real estate broker, the tri-county area of South Florida has long been a sought-after destination for waterfront properties, attracting both local and international buyers.”
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Central or South America
Certain areas in Central and South America are also good options to consider, especially for those looking for an affordable, laidback lifestyle.
“Countries like Costa Rica or Mexico in Latin America can provide low-cost options with stunning weather and natural beauty,” said Martin. These locations can also give you a unique cultural experience that you won’t find anywhere else.
Europe
“In Europe, countries like Portugal or Italy are great options for vacation property. These countries offer a mix of modern cities and quaint towns that can make for a great investment opportunity,” said Martin.
Some places in Europe are more affordable than others, though. Some places — like Ireland, Luxembourg, and Denmark — tend to have higher real estate prices. If you’re looking for something a little less expensive, consider Bulgaria or Poland.
Best Time To Buy Vacation Property
When it comes to buying vacation property, the best time depends on several factors, such as your financial situation, the property type, and the location.
“First, you should consider your financial situation and determine if you have the resources available to make such an investment,” said Martin.
If you’re comfortable with your current mortgage payment and are in a financially stable place, a vacation property could be a good idea. Depending on your goals and needs, it might even be a good investment opportunity.
“Even with economic challenges, buying a home remains the best investment for every household,” said Vanessa Bergmark, CEO of Red Oak Realty. “The mortgage market is cyclical and when conditions improve it’s better to own a property to refinance, as opposed to waiting, because if you wait for the market to improve, remember, so is everyone else, right? So, you’re more likely to get locked into a bidding war if everyone is rushing back into the market to buy a house.”
But you still shouldn’t rush into this decision. It’s important to do your research into different locations and properties before choosing one. This can keep you from experiencing buyer’s remorse later on.
“You should also consider what type of vacation property would best suit your needs and budget,” Martin added. “Depending on where you are looking, there may be different types of properties on the market, such as condos, townhouses, beachfront homes, and others.”
It’s possible that you’ll have better odds of finding an affordable vacation property if you buy one in fall or winter. This is because property owners may be more willing to negotiate on the price during this time. That said, as long as the market inventory is low, the time of year might not matter as much as it once did.
Buying Property Internationally vs. Domestically
Something else to consider is whether you should buy vacation property overseas or domestically. “The best location for a vacation property depends on what type of experience you are looking for and your budget,” said Martin.
For example, do you want to live near the beach or the mountains? How much can you realistically afford?
There are several other things to think about when making such a big financial decision. “To make the right decision, it is important to do your research and consider different factors like cost of living, safety, and overall quality of life in the area you are looking at,” Martin added.
Whether you have an ideal vacation spot in mind, or are still weighing your options, here are some other things to consider:
Availability: In some areas, real estate is scarce or in high demand. This could increase the cost of the property — possibly disproportionately to its value.
Investment potential: The current property value is important, but so is the value of properties nearby. It’s a good idea to choose something with a high return on investment, especially if you plan to sell your home.
Economic and social factors: The area’s unemployment rate, population growth, taxes, and other factors are also important to consider.
Location/Environment: This includes things like the climate and topography, but it also includes the area infrastructure. These factors can affect the value of the property, as well as your experience there.
Government regulations: If you’re considering an international location, it’s important to learn about any regulations or restrictions that might impact you. For instance, it might be harder to get a loan for an overseas property. Or you might only be able to stay in that country for a limited period of time each year.
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This article originally appeared on GOBankingRates.com: 8 Affordable, Up-and-Coming Locations To Buy Vacation Property Abroad
