Saturday, April 21, 2007

Real estate is the key ingredient to an international lifestyle



As you work toward a "perpetual traveler" lifestyle, you need a base in the countries you plan to spend the most time.

You don't have to buy a half dozen homes around the world to enjoy the perpetual traveler's life…and you don't have to do it all at once. To do this, you have to choose locations that have rental potential…and preferably where mortgages are available. You can also partner with friends.

Say you want your first property in the southern hemisphere. In Argentina, you'll pay cash, but you can still find one- and two-bedroom apartments in Buenos Aires for less than $100,000 that will rent out well. In New Zealand, you can finance your first buy…and rent it out: long-term if you buy a house in a non-tourist area; short-term in a tourist area. You can buy a studio or one-bedroom apartment in Auckland for less than $100,000 (U.S.).

In Central America, you can still find lots for less than $100,000. That won't put you on the beach in most cases, but it will get you into an oceanfront community. You'll probably have to pay cash, but if you buy in a development that doesn't require you to build within a set time frame, you can sit on the lot until you are ready to build for your personal use.

In Western Europe, you can obtain financing…and in increasingly more countries in Eastern Europe, too. Finding a property for less than $100,000 is the challenge. You can buy properties in Croatia for less than 100,000 euro ($136,000) if you want to be near the coast. If you want to be near the ski slopes, you can buy in Romania or Bulgaria for less than 100,000 euro. In either location, you can rent out the property short-term when you aren't using it.

If you insist on being in Spain, Portugal, France, or Italy, you'll spend more, but even in these countries you can find properties for less than you think--if you look beyond the popular destinations and move away from the ocean. You'll buy something livable for 100,000 euro, but it won't be in a prime location.

For every property type considered here, I'm not talking about a 3,000-square-foot villa on the beach. You will be getting small apartments or houses. But how much space do you need if you are traveling the world? Plus, two- and one-bedroom units make better short-term rentals.

So, for the price of that beach condo in Miami, you can enjoy an international life, travel the world…and avoid the hurricanes.

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