In this week’s digest:
- Own in an Idyllic Irish Town from €170,000
- Overseas Villas for Half the Cost of a Home in the U.S.
- Beach Town Bargains from just $109,000
- Plus, Your Questions Answered on Owning in Mexico
I’m in Kenmare, Ireland today…
This is an idyllic small town on the Ring of Kerry in Ireland’s lush, vibrant southwest…
Kenmare is among Ireland’s prettiest towns. Set on the popular Ring of Kerry driving route, it attracts tourists from around the world.
The Ring of Kerry is the most scenic drive I know. It takes you through 111 miles of the County Kerry countryside, along calm bays, sandy beaches and wild roaring Atlantic shores.
Starting at the base of MacGillycuddy’s Reeks (which contain Ireland’s highest mountain) in Killarney, the route brings you around the Iveragh Peninsula, through Kenmare and Sneem— two of Ireland’s prettiest towns—and to the long sandy beaches and wild Atlantic at Waterville.
There are attractions and jaw-dropping lookout points along the way. You can take a boat to the Skellig Islands and hike to the ancient beehive monastic settlement. There, monks were battered by wild Atlantic storms…an environment so hostile that they stayed safe from attack for centuries.
The stunning coastline along Ireland’s Ring of Kerry driving route. I’m spending the weekend here…
I’ve been closely tracking the real estate market in Kenmare for decades…and I’ve found some incredible opportunities.
In 2013, I recommended a two-bedroom apartment here for €50,000 ($65,968 at time time) and a new home in Killarney Country Club with stunning views of the Gap of Dunloe for a mere €75,000 ($98,953 at the time).
Today, these properties would sell for at least five to six times those prices.
All across Ireland, prices are soaring…
As in the U.S., supply simply can’t keep up with demand here.
From the middle of the global financial crisis, it was clear that the demographic trends combined with lack of capacity to build was leading to this scenario.
The current supply shortage is also due in large part to Ireland’s draconian and bizarre permitting process. It takes years to get a project off the ground here. While lack of permitting clarity allows anyone and everyone to object to any building at any time.
This means prices here are not cheap, even rural towns like Kenmare…
On the low end in Kenmare, you’ll find small but comfortable apartments within walking distance of the town for sub-€200,000, like this two-bed on the market there for €170,000 ($184,000).
At the higher end of the market…this modern four-bath, four-bath detached house is listed for €395,000 ($428,000). It’s just off the Ring of Kerry and about 15 minutes’ walk from the town.
Spanning almost 2,000 square feet, this house in Kenmare is in turnkey condition. It’s on the market for €395,000. Listing here.
For the right person, these homes would make a good lifestyle play.
But Ireland is not generally a place to invest for profits. Prices have skyrocketed in recent years, and the restrictions on renting short and long term are onerous (a topic I’ll address in more detail in a future article).
When it comes to bang for your buck, there are other overseas destinations that hold far more potential…
Stunning Villas for Half the Price of a Home in the U.S.
In April, the median U.S. home sale price rose to $433,558…that’s up 6.2% on last year to the highest level on record.
So, yesterday in Your Overseas Dream Home, I set my team a challenge…
Find not just homes, but villas overseas for half the median U.S. home sale price or less—that’s just $216,779.
They dug deep on destinations across our global beat, from the mountains of Italy’s famed Tuscany region, to the heartland of South America’s wine growing industry in Mendoza, Argentina. Here’s some of the listings they found…
- A charming villa in Tuscany, Italy for €195,000
- A historic three-bed home in Normandy, France for €180,500
- A house with a pool in a gated community in Argentina for $130,000
It just shows the incredible value you can find when you look in the right destinations overseas.
All those listings are in this article here.
You’ll find an abundance of affordable villas in the hills of Italy’s famed Tuscany region.
If You Love Bargains…and the Beach…
In case you missed it…
My team also recently researched some of the world’s best beach towns in search of real estate bargains. And I put the best of what they found in a brand-new Overseas Dream Home report—5 Bargain Beach Towns Where You Can Own from $109,000.
Here’s a taste…
- A modern condo in Costa Rica’s world-renowned surfing haven of Tamarindo for $285,000.
- A recently renovated home in a popular beach town on Spain’s Costa del Sol for $204,500.
- An apartment in the historic center of a white-washed Old Town in Portugal’s Algarve region for $210,000.
- A two-bed home in a gated community in a charming village on Mexico’s Caribbean coast for $109,000.
Details on all these properties and the communities where they are located, are in the report 5 Bargain Beach Towns Where You Can Own from $109,000…completely free to you as an Overseas Dream Home reader.
In your new report, you’ll learn about this stunning village on Mexico’s Caribbean coast where you can own from just $109,000. All the details are here.
Questions and Feedback
Have a question or comment? Share it here. Here’s one I got from an Overseas Dream Home reader…
Trish says: “Appreciate the FAQ answered by Ivan Castillo. These were some of the questions I had as well. Would it be possible in Mexico to pre-sell your pre-construction condo before you officially receive the title to the property? If it is possible, what are some of the benefits or negatives to doing this?”
Ronan says: Thanks Trish, great question. Just to share the background, recently the attorney that I and many members of my Real Estate Trend Alert group use in Mexico, Ivan Castillo, answered some frequently asked questions from Overseas Dream Home readers on buying there.
Here’s a link to the video…
In this video Q&A, the attorney I use in Mexico, Ivan Castillo, shares important insights on buying and owning real estate there. Click to view.
Now, let’s talk about what happens when you buy a condo pre-construction…
The first thing you’ll do when you buy is sign a contract. That contract lays out the terms for everything, including whether you can assign your contract and effectively sell your condo during construction. And if you can assign your contract what are the steps and costs involved (if any).
Here’s the crucial thing upfront: You have to know what’s in your contract.
You need to read your contract thoroughly and make sure you understand it. This is where your attorney will come in…it’s always a good idea to talk through key clauses with your lawyer.
Developers often restrict flipping predelivery. It can undermine the project. For instance, part of the implied quid pro quo with the incredible, off-market deals I bring to my Real Estate Trend Alert group is that we don’t compete with the developer’s retail sales.
In most cases you need the developer’s permission to sell preconstruction. There are also often legal issues (anti-money laundering laws for example) that can be complicated to navigate.
Strictly speaking if a developer agrees, then what they are allowing you to do is assign your contract. Most developers are OK with it if you are assigning to a family member or an entity you control. Assigning to someone else for profit brings more restriction and complications.
So, can you sell during construction? The short and unhelpful answer is its country specific, project specific, and developer specific. And it changes.
On some countries on our beat, this is becoming more difficult. For example, developers in Mexico are coming under additional anti-money laundering scrutiny and regulation. The penalties for the developer can be incredibly onerous if any steps are missed. This makes developers reluctant to bring the extra compliance risk on themselves. Yup, you could be selling on to your pal back home but the developer still has compliance exposure.
The bottom-line is:
- Make sure you know exactly what is in your contract.
- Make sure you won’t be in a situation where you have to find a way to sell.
Here’s something to remember…
You’ll see I almost always talk about the off-market deals I bring to my RETA group as five- to eight-year holds.
Immediately on delivery there is usually a flux in the project and resale levels peak. It takes a while for the dust to settle.
My condo in Copala, in the 5-star Quivira resort in Cabo, is a good example. For about 18 months after delivery resales prices were in the $450,000 range (the RETA members-only price for this type of condo and the one I bought was $336,156). There was competition from owners trying to resell and rent. This kept prices temporarily artificially lower than otherwise. As more end-users absorbed the inventory rental rates doubled, resales became scarce, and asking price on the type of condo I own jumped above $700,000. (If you’re not yet a RETA member learn about the benefits here.)
My condo in Copala, in the 5-star Quivira resort in Cabo, is a good example. For about 18 months after delivery resales prices were in the $450,000 range (the RETA members-only price for this type of condo and the one I bought was $336,156). There was competition from owners trying to resell and rent. This kept prices temporarily artificially lower than otherwise. As more end-users absorbed the inventory rental rates doubled, resales became scarce, and asking price on the type of condo I own jumped above $700,000.
Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
P.S. If you have a question or any feedback, I’d love to hear it. Have a question about owning in Mexico? Want to suggest a beach town we should scout? Want more recommendations for idyllic towns and villages to investigate in Ireland? Let me know here.
