Investing Overseas (Uruguay)
Quick disclaimer. This is my first ever post and so my thoughts may not be all that clear. With that being said.
Hi, how are you?
Are you interested in investing in South America?
Let me tell you alittle about myself. I moved to Uruguay about 6 years ago, I started a small family remodeling company and started learning about real estate and the likes because of my father. I am very passionate about it and love it, most of all learning and doing everything I possibly can in the field. From building houses to land-lording.
The market here in Uruguay is very good. Yes true in some places the prices are ridiculous, but in other places they are just amazing. Let me give you an example; a 1 family house in one of the nicest areas in Montevideo (Capital) go from anywhere in the 150k to the 500k and even higher.
On the other hand a piece of land by the shore side [Costa de Oro] (Lots of tourism) goes from 10k to 40k cash.
To build a nice place to rent out is not that expensive either, you can build a 3 or so small apartments maybe 2B/1B for about 10k, or you can buy Steel Framing prefabs from 5k to 30k depending on sizes and deals.
Now for the good part. The rentals in the summer for this houses go anywhere from 40 to 120 a day. Or you can build them to rent all year round (3/4, 2 floor houses 2 2B apartments each) and rent them for 500 each. (3000/4000 a month)
If we look at the numbers (40k for land + 40k for construction and 10k for permits and more) the Cap Rate for the second option is 40% / 53.33%. The actual Net Income would probably be somewhere in the 200 per unit (To be extremely conservative) X 6/8 units is 1200/1600 per month total. ROI = 16% / 21.33%
This are real number and anyone can get the same returns easy. Uruguay is an amazing place for investing and I hope people take advantage. The only problem here in Uruguay is trying to live here and investing since the cost of life is very high and monthly job income is very low also banks/private lenders have two many restrictions on loans. (Not an excuse, just a slower start)
Personal note: After saving for a while I bought a piece of land (500 Sq Mt) in Parque del Plata (North) it cost me 30k total and I am paying it as a loan would work in the US. After I am able to build 10 units I can easily rent them out for at least 2.5k a month and Net more than 1k. This will be small 1B apartments, I have talked to many in the area and have a lot of potential renters just waiting for the units.
All number are in US Dolars. All links are from the main listings site in Uruguay. If you want more information feel free to ask I would love to help out and learn more in the process.
Hope this gives you an idea of investing in Uruguay and really hope you jump in on it.
P.S. Prices keep going up so appreciation is also amazing. You could probably sell this rentals in a few years and make anywhere from 2 to 5 times more on your investment.