Where the “Ordinary Rich” Are Buying Homes Overseas

I’m sitting at a café in the Portuguese city of Caldas da Rainha…

This is a small city of around 50,000 people known locally for its traditional ceramics industry and vibrant markets. Caldas was once a wealthy place. The city center has lush parks and colorful historic homes. There’s a famous thermal hospital here that dates to the 15th century.

Caldas has a lot of history and charm, but as a smaller city to the north of Lisbon it was long unknown to foreign tourists and expats.

Recently, though, that’s changed…

The café where I’m sitting is trendy and upmarket. Around me are what appear to be work-from-anywhere professionals from overseas. They’re a common sight here, and not just in Caldas but in neighboring towns and cities too.

In the span of just four or five years, this region north of Lisbon has undergone a huge transformation. All because of a group I call the “ordinary rich.”

Ordinary rich is a term I use for folks who earn well…not super rich but well-off. They often can move around to some degree, too. I’m talking about small-business owners, entrepreneurs, financial and investment experts, lawyers, surgeons, real estate developers, software specialists, management consultants…

In a moment, I’ll explain more about this group and why they matter so much to real estate investors. But first, where is Caldas…

I often visit Caldas da Rainha when I’m in Portugal since it’s only about 20 minutes’ drive from my home on the Silver Coast…

The Silver Coast refers to a vast stretch of Atlantic coastline between Lisbon and Porto.

I own an ocean-view condo here in the luxurious Praia d’El Rey beach and golf community. I returned to my home late last week and spent the weekend strolling along the sand, relaxing in the resort’s spa, and visiting favorite restaurants in nearby towns and cities like Caldas and Peniche.

The lifestyle here is laidback…rich…idyllic…

I’m not surprised that this region has been discovered. Though the speed of the transformation in its real estate market has been astonishing…

How I Found My Home in Portugal

I’ve been scouting Portugal since the early 2000s. I’ve spent much of that time focused on the country’s hugely popular southern Algarve region, where I’ve found a host of incredible deals for my Real Estate Trend Alert group. (Details below.)

About four or five years ago, I started looking for a home in Portugal. So, I sat down and listed my priorities. I knew I wanted an ocean view where I see the waves crashing…access to a stunning beach…world-class golf…an international airport close by…

I identified a number of spots that fit the criteria. The Algarve was on my list, but the previous summer I’d stayed in a hotel in a popular town there called Carvoeiro. The town was heaving with tourists…the temperatures were in the mid to high 90s F…the sky was gray with smoke from forest fires burning inland. This type of situation is rare in the Algarve…but it’s a red line for me.

I decided to look to the north, to somewhere with fewer tourists and more moderate summer temperatures. That’s how I found the Silver Coast.

When I first visited, this was a true “next place”…somewhere off the radar…undiscovered.

Development had come to this area. The beachfront community that’s part of Praia d’El Rey had already been built, but the developer went bankrupt. They were too early. The units were sold off in fire-sales, mostly to speculators.

When I first visited, basically everything was for sale. There were probably 30 homes on the market here and another 20 or 30 that were available but hadn’t been listed yet.

My condo cost me €300,000…an incredible bargain. The view from my terrace is jaw-dropping.

This was primarily a lifestyle play.

I felt confident that the Silver Coast would be discovered in time. With its stunning beaches, world-class golf courses, and charming historic towns and cities, this region simply has too much inherent appeal to fly under the radar forever. But I didn’t have big expectations for short-term capital appreciation and rental income when I bought here.

Then a number of trends converged and the “ordinary rich” began flocking to this coast…

Who Are the “Ordinary Rich”?

As I say, “ordinary rich” is a term I use for folks who earn well. Often they can often move around to some degree, too. Folks like small-business owners, entrepreneurs, lawyers, software specialists, management consultants…

You’ll often hear these people called High-Net-Worth Individuals (HNWIs).

These folks aren’t in the market for multi-million-dollar mansions or 5-star resort residences. But they want luxury and resort-style amenities…and they can pay for it.

While wealthy, the ordinary rich don’t display the extravagant lifestyle often associated with wealth. Yet they play a pivotal role in shaping markets, particularly in luxury goods, real estate, and investment sectors.

That’s important because the number of HNWIs worldwide is increasing…

According to consultancy firm Kinsey, there’s been “a sharp rise in the number of individuals globally with net worths between $1 million and $30 million.”

The growth in this group naturally leads to a corresponding increase in demand for luxury travel and living experiences.

More than ever people are adventuresome, international looking, and discerning.

The days of hanging out in a condo in Florida until death are gone. People are sports fishing, golfing, learning to paddle board, ride a horse…they are more open to new destinations…and their expectations are higher…

Meantime this type of luxury living is getting insanely expensive in the U.S. Many of those that can afford it just aren’t willing to do it.

So they’re ending up in new destinations—places overseas that offer incredible experiences but also incredible value.

Destinations like the Silver Coast in Portugal.

The Silver Coast Has Been Discovered

Since I bought here, real estate demand on the Silver Coast has exploded as discerning, wealthy folks flock to this region.

That’s not to say there’s been a lot of construction here. Or the Silver Coast is now overrun. This place remains relatively quiet and sleepy. New developments are small and low key.

Rather, what’s happened is that most of the great inventory that was available here has been snapped up. This has led to an astonishing drop in supply and big increase in prices.

As I say, when I first looked here, there were dozens of homes listed in my community, with more unlisted but likely available. When I checked earlier this week, I found just one listed.

My condo has appreciated in value by 50%. Last summer a broker wanted to list it for sale at €450,000. That’s €150,000 more than I paid. Some of the more premium properties here, such as oceanfront houses and villas, have more than doubled in price…all in just four to five years.

Then there’s the increase in rental rates and occupancy levels…

I list my condo as a short-term rental when I’m not using it. The latest statement from my rental manager shows that from July 2 to August 8, while I was in Ireland enjoying time with family, my two-bed condo in Praia d’El Rey netted me €4,401. That’s more than that the total costs of ownership (HOA, property taxes, insurance…you name it) for the entire year PLUS golf club dues on two world-class oceanfront courses.

I don’t ever imagine selling this condo. I love spending time here. I’ll keep it as a vacation home and rental, and as a store of value. But my condo shows the benefits of being ahead…of buying in the “next places” before the ordinary rich arrive en masse.

The Silver Coast has now been discovered. It’s no longer a “next place.”

Which raises the question…where will the ordinary rich go next?

The ordinary rich want luxury, stunning natural beauty, and rich lifestyles. But they also want bang for their buck.

There’s a very small number of destinations on earth that truly offer the full package to the ordinary rich…

But my team and I have spent the past few years scouring the globe for up-and-coming destinations that meet these criteria.

And we’ve found a few…

Where Will the “Ordinary Rich” Go Next?

Prior to arriving at my Silver Coast condo, I spent four to five days scouting northern Portugal. (Click here to check out an article I shared last week on this region.)

The north is where the people will go next in Portugal…

Destinations in the region north of Porto fly under the radar for now. And as a result, values are a fraction of what you’ll pay for comparable real estate elsewhere in the country. But that’s a temporary situation, as it was in the Silver Coast. (In June, members of my Real Estate Trend Alert team received a full, in-depth scouting report on northern Portugal. To learn more about my RETA group and get access to this report, click here now.)

Another place to know is Montenegro…

This is Europe’s newest Riviera…a hidden haven of the ultra-rich and a place that’s now increasingly being discovery by the ordinary rich as well. (I just brought RETA members an incredible off-market opportunity there to lock down stunning two-bed condos from a RETA-only €348,356. I expect these will be worth €550,000 five years after delivery. That’s a gain of €201,643. And that’s likely conservative.)

There’s also another place, closer to the U.S., that similarly has immense potential—a stunning Caribbean destination that’s on the cusp of being discovered by the ordinary rich in huge numbers…

Cap Cana is a vast master-planned beachfront community.

At 30,000 acres this place is twice the size of Manhattan. It’s also in the Dominican Republic, an easy flight from the U.S.

This community boasts a breathtaking coastline, with azure Caribbean waters set against an expanse of white sand. You’ll also find resorts like a St. Regis…Hyatt…Secrets…and a stunning Eden Roc. The inland marina there is the largest in the Caribbean. And you have restaurants…schooling…shopping districts…a Jack Nicklaus golf course…

Already, billions of dollars of thoughtful and ambitious infrastructure has been rolled out here, with much more to come.

On the immediate horizon for Cap Cana is a huge water park…a massive amphitheater for shows and events…a second Jack Nicklaus golf course…a huge sports training center for international teams…

This is a special place. See for yourself…

I first scouted the Dominican Republic in 2012 and was completely smitten by the beaches, and excited by the developmental potential I found, especially in Cap Cana. The real clincher for me though was I saw how the country was successfully primed to become a leader in luxury travel in the Caribbean.

Since then, I’ve tracked its development closely. It’s taken 12 years, but now the moment is right. There’s a convergence of demand from the ordinary rich. Investment is flooding in. New transportation links have opened it up like never before. And I’ve found the right deal there…

I’m about to bring an exclusive, off-market deal here to members of my Real Estate Trend Alert group. With this deal, I expect gains of $275,000 five years after delivery. And when it launches, I’ll be buying right alongside RETA members.

Full details coming to RETA members very soon… (Not a RETA member? Learn how you can join here.)

Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert

P.S. I first scouted Portugal’s southern Algarve region way back in 2002. Back then, it was busy only during the peak summer months. I always suspected that could change…that it could attract year-round expats and second-home owners. So year after year, I returned to scout the Algarve…watching the market and building contacts.

Then when Portugal began to explode in popularity with the “ordinary rich” in the mid-2010s, I was ready and brought a run of killer deals to my Real Estate Trend Alert group. To give you a brief sample…

• Boost of €160,000—In December 2019, RETA members could buy in a community called Santa Maria from €310,500. Two-bed condos available to RETA members for €390,000 now list for €550,000.

• Over €500,000 More—In 2020, I recommended condos in a community called Adega. RETA members could get penthouses there for the incredible price of €480,000. Those now list for around €1 million…meaning they’ve doubled in price.

• An Uplift of €275,000—In 2021, we had a RETA member-only deal in the luxury community of Dona Maria. RETA members could buy two-bed condos in Dona Maria from €575,000. These now list for about €850,000.