A second home somewhere sunny, sandy, and adventure-filled is a common dream. Alas, it’s beyond most retirees’ reach in the United States.
Our just-released Global Property Advisor survey finds that beachfront property prices can be at least three times as much per square meter in the States compared with top coastal markets worldwide.
Your second home overseas can double as an investment. Rent it out when you’re not using it for cash flow. Buy right and position yourself for capital upside.
It can also equate to a rent-free retirement. Your beachfront condo can be waiting for you to move into when you flip the switch to that stage, eliminating the cost of housing from your retirement budget.
Where should you shop? We’ve identified five top beachfront rental markets that are also among the world’s best places to enjoy a rich retirement.
Santa Marta, Colombia
Santa Marta is our preferred spot when shopping for coastal property for personal use in Colombia.
This is a beloved destination among Colombians and boasts one of the lowest costs of living anywhere on the Caribbean.
Santa Marta doesn’t have the same international recognition as Cartagena, which means it doesn’t get the same levels of tourist traffic or expat residents. This could be a benefit for someone looking to live here much of the year.
Exploring the 20-kilometer stretch of coastline along Santa Marta’s metro area, you’ll discover breathtaking coves bordered by small towns, new residential projects on isolated beaches, and Colombia’s oldest historic center.
A downside to living in Santa Marta is the weather. It’s hot, too hot for some. Average temperatures are 92 degrees and higher.
Market momentum has been good, with values increasing nearly 50% over the past three years. Still, property prices remain inexpensive by Caribbean standards.
The international rental market is stronger in Cartagena, but the capital gains in Santa Marta are worthy, and the town attracts healthy national rental traffic.
By day, you can swim in the clear, warm waters, enjoying great diving followed by spectacular sunsets. By night, the waterfront transforms into a beach party. People show up by the hundreds for local music, street food, and good company.
If you’d like a beach lifestyle with a low cost of living and lots of local flavor and flair, Santa Marta could be for you.
Iskele Long Beach, Northern Cyprus
Iskele Long Beach is located in the eastern Mediterranean Sea south of Turkey. Its 2.5-kilometer stretch of beach is the longest in Northern Cyprus.
This is a market you should be paying attention to right now. This is bona-fide Mediterranean beachfront at a bargain price.
Values have risen 100% since 2020. Despite this, the Iskele district remains one of the least expensive markets for ocean-view properties in the region.
Iskele and the small towns around it enjoy a healthy tourism trade and good tourism infrastructure. The area is known for its myriad of restaurants, clubs, casinos, and luxury hotels.
To get here you’ll need to connect through Istanbul, Ankara, or Antalya then on to the Ercan International Airport 40 minutes from Long Beach.
Northern Cyprus boasts golden sand beaches with crystal clear waters and beautiful natural scenery everywhere you look. It’s a safe, low-crime country with great weather, a low cost of living, welcoming locals, and cheap property.
Ambergris Caye, Belize
Belize is a popular and beloved English-speaking retirement haven and vacation destination. Less than a three-hour flight from the southern United States, it’s surrounded by Caribbean waters, bays, inlets, and hundreds of cayes.
Belize’s largest island, Ambergris offers all the benefits of life in the Caribbean: world-class diving, swimming in turquoise warm waters, year-round sunshine, natural beauty, and friendly and welcoming locals.
This is not the budget destination it was a few decades ago, but compared with other Caribbean destinations it’s still a bargain.
Investors are getting into the market shopping for both appreciation and cash flow-producing condos. If you are interested in something hassle-free, land banking is a great choice that comes with little ongoing expense.
Over the last three years, land in the path of progress of Ambergris has appreciated 15% to 20% per year. We expect this growth to continue.
During high season Ambergris boasts an active short-term rental market that can generate excellent yields. Repeat visitors help keep occupancy rates high.
Ambergris Caye is still not as recognized as Cancún or Punta Cana, but it’s on its way to becoming a widely popular destination.
Due to this increase in demand, prices are rising, but opportunities are out there still. In 10 years, I expect this to be a completely different market. Investors who take advantage of current opportunities will be glad they got in when they did.
Mazatlán, Mexico
Mazatlán is a city of almost a half-million people, where you can choose to be part of the American and Canadian expat community and speak mostly English or you can choose to live in a completely Mexican environment and immerse yourself in the local culture.
Mazatlán’s historic center is large and offers a wide range of prices and architecture styles. Most expats who move to this city buy in Centro in the historic district or eventually end up there after a few seasons.
For investors, excellent deals can be found along the waterfront, where rental traffic is high. This destination offers 17 kilometers of mostly contiguous stunning beaches, with an 8-kilometer boardwalk with bike lines.
Mazatlán stands out from Puerto Vallarta and Playa del Carmen for being a mostly Mexican destination. Expats are settled here, but they are not a big presence.
Mazatlán’s rental market is strong year-round. North Americans come in winter to escape the cold; Mexicans visit in summer for their annual vacations.
It’s also conveniently close to the United States. You can comfortably drive or fly to Mazatlán.
If you’re shopping Mexico’s beach markets, Mazatlán is where you’ll get the most intrinsic value for your money.
Kotor Bay, Montenegro
Kotor Bay is the most beautiful, best-appointed spot along Montenegro’s 300-kilometer-long coast and the most interesting opportunity for investors in this country.
The bay is dotted by a charming mix of medieval villages, modern towns, and luxe developments complete with superyacht marinas.
The ultrawealthy treat this yachting paradise like their own private riviera. Within a few hours’ drive inland are sprawling national parks and a dozen ski resorts. It’s an adventure sports enthusiast’s playground.
We like the diversity of lifestyle opportunities and property types on offer. Kotor Old Town is an ancient walled village widely regarded as the best-preserved medieval town in the Mediterranean. Jaw-dropping ocean views are a given.
The geography of the bay ensures that. Rarer is property directly on the water. Inventory of that type is limited. Buying costs are low.
Until next time,
Kathleen Peddicord
Founding Publisher, Overseas Opportunity Letter
Editor´s Note: This article was first published in Forbes.
