Purchasing a tract of land is usually an excellent long-term investment – particularly in an emerging market. The single largest argument against this strategy is that, while ownership makes us feel good and it may be beautiful to behold, it typically is a drain on resources and doesn’t generate revenue for the investor during the holding period. You also may have to be concerned about squatter’s rights depending upon your choice of which country to buy in. Costa Rica is considered by many investors to now be a mature market, so those who were looking there or are flipping their properties for a profit have begun looking at Panama, Belize, Honduras (Isle of Roatan), and even Nicaragua.

ALL real estate purchases are speculative, so I would say where you should buy really depends upon your personal interests, your availability to improve/maintain a residence, and your skill-sets. If your goal is to buy low, then possibly sell high at a later date, the question then boils down to choosing among:

1) raw land which produces no income
2) a small commercial building with great tenants high CAP rate
3) income-producing vacation rental / holiday condos or homes located in high traffic tourist areas
4) fix flips
5) long-term rentals

If you’re a frequent traveller or vacationer, (or want to be one), suggestion #3 may be a nice fit, but prepare to do A LOT of due diligence prior to your purchase. Make sure you understand the nation’s laws pertaining to foreign ownership, typical transaction costs, tax ramifications of your purchase, and the availability of title insurance in the nation you’re interested in. There are now several lenders who will underwrite mortgages on foreign soil, so you might be able to expand your purchasing power if desired. Recommend you speak to your financial advisor to learn more about the benefits of vacation rental / holiday home ownership in general, and tax benefits relevant to your country of origin. Make DAMN sure you deal only with reputable professionals throughout the transaction.

Fix flip and long-term rentals require too much effort and are headaches – in my opinion – particularly for an absentee buyer.

So to answer your question:

Given a hypothetical $100,000 US budget and the choices of owning a chunk of land which produces no income, owning a small commercial building located in a city somewhere and owning an income-producing vacation condo anywhere in the world….. I’d go with #3, but that’s just me, (and several of my Clients

Hope this helps, and Good Luck!

When things catch back up to where they are suppose to be you will be looking a a 50% increase in value in most cases.

And no out of country political dealings to have to worry about