The Two Top Property Investment Markets For 2016
Ever since I boldly predicted that The Beatles would fade away by the end of 1965—overshadowed by The Dave Clark Five—I’ve learned to be wary of making predictions.
But predictions are part of the business when it comes to buying property abroad (or writing about buying property abroad). Any time we buy a piece of real estate—for anything other than strictly personal use—we’re making a prediction that its value will improve… or that it will produce an income… or that the country it’s in will continue to provide us with favorable conditions. In some cases, we’re hoping all those things prove good bets.
Making predictions is easier and safer when you’re able to work from proven track records. In that spirit, I offer my picks for the top two property investment markets of 2016. In each case, these are markets we’ve been researching, scouting, following, tracking, reporting on, investing in, and profiting from personally for some time.
That is, these are not new recommendations but proven ones. Further, in each case, the market fundamentals and prospects are as strong as or stronger than they’ve been in all the time we’ve been making our endorsements.
Meantime, in one case, exchange rates are presenting a window of opportunity too extraordinary to ignore.
Medellín, Colombia Still Has Lots Of Room To Run
I’m speaking of Medellín, Colombia, a market Live and Invest Overseas has been recommending for seven years. When we first shone the light on this market in the shadows, the world scoffed. Today many are jumping on our Medellín bandwagon.
That said, looking ahead through 2016, we are more bullish on this market than ever. Colombia continues on a strong track overall. Medellín is prettier, livelier, and more prosperous than when we first laid eyes on her seven years ago. Today, the expat community here, non-existent when we arrived on the scene, is established and growing.
And, most important, the U.S. dollar is at an all-time high versus the Colombian peso. If you missed out when we first told you to take a look at what Medellín has to offer, this is your second chance.
Why We Like It:
Medellín enjoys beautiful year-round weather with an average daily high temperature of 84° F (29° C) with only one degree of seasonal variation. No matter when you choose to visit, you can count on the weather being nice.
Also, Medellín has sufficient rainfall to keep everything lush and green and to turn the drought concerns of western North America into a distant memory.
Medellín is our first choice for full-time, city living. The upscale neighborhood of El Poblado is walkable, safe, and attractive, with lush parks and lots of trees. The city is clean and bright, and has more restaurants, cafés, and nightlife than you could experience in a lifetime.
What’s more, when living in Medellín, you can enjoy all of the conveniences that you have back home.
Why You Should Invest:
There are two big reasons why Medellín is a great place to invest in 2016: the lingering Medellín Cartel stereotype and, as I’ve suggested, the strength of the U.S. dollar.
The stereotype is a holdover from the late 80s and early 90s when the Medellín Cartel and Pablo Escobar ruled in Medellín. Pablo died 22 years ago in December 1993… but most Americans have long memories and little knowledge of world events, so his reality lives on in many peoples’ minds.
This false reality has kept prices low in Medellín and throughout much of Colombia.
Meanwhile, people under 50—for whom Pablo Escobar is a historic figure like Al Capone or Bonnie and Clyde—are coming to live and work in Medellín. Also, savvy retirees who know the real situation are buying in record numbers.
What’s more, mainstream media (like New York Times Travel) are now recommending Medellín to their readers.
I believe the dissolving stereotype and the increased mainstream attention will continue to push prices up in Medellín in 2016.
The second factor is the U.S. dollar. It’s been on a tear since mid-2014 and now has about 79% more buying power than it did at that time. A condo valued at US$150,000 in 2014 is now selling for just US$84,000… a US$66,000 discount.
I’d invest in Medellín sooner rather than later, since the impact of both factors (the dying stereotype and the strengthening dollar) will fade as time goes by. I think the dollar will have levelled by mid-year, so investors need to be shopping now.
Editor, Overseas Property Alert
P.S. I’ll pick this up here tomorrow with my recommendation for the second top property investment market of 2016, another market with a proven track record and, like Medellín, even brighter future prospects.