Latin america: worth a gamble?
In these times of property concern, buyers are more cautious than ever before shelling out on an investment. However, Latin America, an area known for wars, coups and government corruption, is now attracting a number of shrewd investors. In a new series we look at some of the countries being considered and ask... is it worth a flutter in Latin America, or when the chips are down are the odds too great?
Photo by Phil Romans
Cause for Concern
Real estate investors seeking safer property havens for their capital in these troubled times, may not have contemplated Latin America - until now.
With a history of hyper-inflation, coups, dictatorships, corruption, drug lords, kidnapping and social disparity, it has not always been the most suitable area of the world in which to purchase property.
Latin Lovers
But the region's growing economies, recent political stability and an increase in tourism, mean that savvy investors are snapping up homes there, from holiday villas on Uruguay's beaches to high-rise flats in Panama and Mexico.
Latin America is high on glamour but low on costs - a luxurious lifestyle at half the price - the perfect cocktail for any would-be investor.
There are definitely bargains to be had; for just £27,000 you can buy a stylish flat near the beach in Brazil or an apartment in central Buenos Aires. Yet concerns exist that over development and unrealistic sales targets can often lead to poor-quality construction and a surplus of unsold property.
Growing Pains
Globalization is lifting Latin America to lofty heights and the reward for sound economic policies is evident.
The devaluation of the local currency for countries such as Argentina and Uruguay forced them to have an economic overhaul, which ultimately gave them a more stable economy. Peru has generated 9% growth at least partly by imitating Chile's budget restraint and free-market reforms. Colombia's success on terror and sound macro-management has bought huge pay-offs in company profitability, capital investment, and exports. In Panama, the government is enlarging the canal and creating a Dubai-like off-shore-Centre.
A Place to Rest
There is an increase in the amount of retirees that head towards Latin American destinations, particularly from the US, where many look to retire to Mexico, Costa Rica, Belize, and Panama.
Be Wary of False Profits
But be cautious of the possibility of some inexperienced developers looking to entice foreign investors with portentous promises and inverted incentives. Potential buyers need to be cautious and research the sites and companies they could be dealing with.
So, with that in mind, in the next instalment we will take a look at one of the countries in Latin America and assess if it is worth a wager or best avoided.
Search for property for sale in Latin America