If you’ve spent even five minutes on our site, then you know we’re pretty big fans of international real estate as an investment. It’s tangible, stable, and even pretty predictable if you’ve been doing this as long as we have. And — as is often said — they aren’t making any more of it.
If that finite supply is part of what makes real estate a great investment opportunity, then it plays an even bigger role when it comes to island property. There are only so many in the world. It’s part of what adds to their allure.
Due to the limited number of listings for island properties for sale, their demand (and consequently their price tag) is often quite high. Not to mention, buying and owning island property comes with its own very unique set of challenges.
So before you go in all Robinson Crusoe and start making offers on your own personal deserted island, here are a few tips to keep you from getting marooned.
1. Be realistic.
You may have delusions of grandeur of living in solitude in your own tropical paradise. Or maybe you’ve come up with the perfect plan to buy a raw tropical diamond in the rough and turn it into the next Roatan, Honduras. Just know this. Neither living on or developing an island is for the faint of heart.
Before you hop a boat from the mainland, ask yourself a few questions. Will I be OK with being a bit cut off from civilization? What happens if there’s an emergency? Do I really want to pump my own water?
Potential investors or developers should do the same. Think about these questions. How much will I need to better this land in order to turn a profit? Have I factored in the cost of transporting tons, meaning literally thousands of pounds, of building supplies from the mainland?
Too many people buy island property without taking these and other factors into account. Once they realize they were disillusioned about what it would demand, many end up turning right around and selling it or, worse, getting stuck with undesirable property they can’t get rid of.
Chuck Holton
2. Consider the ease of access, or lack thereof.
By its definition, island property is surrounded by water. This fact opens up a whole can of worms that you might not have ever thought about before if you haven’t lived on an island.
Not only is there the issue of the island’s distance from the mainland. There’s also the physical hurdle of getting people and supplies out of a boat and onto dry land. That’s not always as easy as it sounds. There has to be a shoreline somewhere that’s conducive to loading and unloading.
This becomes even more crucial if you’re planning to build. It’s one thing to imagine bringing your furniture and groceries ashore on an island. Now imagine unloading stacks of lumber or a backhoe. In most cases, it is possible. But the time and costs associated with building on an island can be many times more than what the same would cost on the mainland.
3. Know your rights.
In most places in the Latin Tropics, foreigners have the same rights as citizens when it comes to buying and owning real estate. However, there are sometimes caveats. And island property is one of the most common types restricted by local laws.
For example, in some countries islands can only be purchased as Rights of Possession (ROP) property. That means they’re actually owned by the government. You have the right to use and develop it as you wish (with a few limitations). You just don’t hold the title and, as a result, don’t pay taxes.
If that scares you, it shouldn’t. It’s a very common practice, and it’s often the only way to be able to possess some of the most amazing properties in the tropics. It’s also not that different from owning land in the U.S. (If you don’t agree with that statement, then just ask yourself what would happen to the land you own if you stopped paying your property taxes.)
Another thing to be aware of is that many countries also recognize adverse possession, which is where a trespasser can actually acquire ownership of property merely by occupying it (read: squatting). So, before you buy a property that you think is vacant, you might want to check it carefully for any signs of vagabonds.
4. Do your due diligence.
For these and other reasons, it’s never more important to diligently research a title than when it comes to buying island property. Disputes over land can and do arise. And — if you take nothing else from the advice I’m giving here — know that if any questions are going to arise concerning the ownership of a property, you’re going to want to address those BEFORE you purchase it.
Resolving title issues is a manageable hurdle that can be surmounted. Ending up having to plead your case in a foreign court and facing the potential of losing everything you’ve invested is a NIGHTMARE that you never want to have to deal with.
5. Work with a trusted team.
Buying island property is not easy. But, while the risks it presents are ones that can be managed, that’s no easy feat for someone who doesn’t specialize in international real estate transactions.
That’s why my best advice is to work with a team of trusted professionals who can help guide you through the process. A local realtor can help you schedule property viewings, compare listings, and complete written offers. An attorney who’s well-versed in real estate can help with researching the title and walking you through the buying process.
It’s important to thoroughly vet any of these professionals before you hire them. Get recommendations from other expats and investors. Meet with several experts and interview them before you tell anyone they’ve got the job.
With the right help and an objective approach, buying an island can be a lucrative investment or a tropical dream come true. Just be careful. Failure to follow these tips could leave you feeling like a castaway.
If you’ve settled on the place you plan to live in retirement and haven’t yet made an offer on your dream home, then what are you waiting for? Not only does owning a home in the tropics mean that you have a place to stay whenever you come down to visit, it’s also a great retirement planning strategy.
Buying a home that can also serve as a rental property when you’re not using it, is a great way to help the home pay for itself. It may even be another way to generate income to help you live even more comfortably in retirement.
But while owning and renting out a home in another country may seem like quite a challenge, it’s one that can be easily managed. Literally, in this case.
When it comes to rentals in the tropics, the services of a qualified rental manager or management company can be priceless. From making sure your property stays booked to getting repairs made in a timely manner, here’s how to make sure your rental manager will make, not break, your experience of owning a rental property in the tropics.
Find the person before the property
Rental managers know better than anyone else what are the most sought-after locations for rentals in the cities where they operate. They also know which types of properties rent the best and what kind of renters you can expect to attract.
As such, they can be just as helpful in finding you the right property as they will be once it’s ready to rent. So, if you plan to buy a property to rent, your rental manager might be a good person to have on your home buying team.
Choose wisely
Just as the right rental manager can be the key to your property’s success, hiring the wrong one can be an absolute disaster. So, how do you know which management company to choose?
You can start by asking for recommendations if you know any other expats or property owners in the area. Try consulting expat forums focused on your town. Find out who’s happy with their manager and who isn’t.
Also, don’t underestimate the effectiveness of a basic online search. But don’t just type “rental managers in Nosara, Costa Rica.” Search the way your target audience would.
For example, if you’re wanting to market your Panama City condo to local business professionals who might stay more long-term, try searching “departamentos amoblados Panama City.” The top listings you see for furnished apartments are the same ones your prospective tenants will be seeing as well.
That’s not to say you should hire the first company that comes up in a Google search. That’s just a place to start. It’s absolutely essential to research and thoroughly vet any potential candidates, and even interview a few, before making such an important decision.
Iron out the details
Once you’ve found a rental manager you’re comfortable working with, the next step is to agree on their duties for managing the property, as well as how they’ll be paid for their services. So, before you sign any contracts, make sure every detail has been covered.
At the very least, your rental manager will be responsible for marketing the property, screening potential renters, handling check-ins and check-outs, collecting rent and deposits, scheduling cleanings, and inventorying contents for damaged or missing items. But they may be able to do more.
Find out if they’re willing to enforce any restrictions you want to impose (e.g. no pets or smoking). If they handle property management, they may also be able to handle items such as overseeing property maintenance, paying utility bills, or even taking care of the taxes on the property.
Don’t let out of sight be out of mind
Even though a qualified rental manager can be more than capable of effectively managing your rental property, don’t blindly assume that no news is good news. Check in regularly with your management company to make sure things are running smoothly.
You can request that they submit monthly statements showing any income and expenses for your property. They should also be able to produce receipts for any maintenance performed, items replaced, or bills or taxes paid.
It’s also a good idea to come down as often as possible to check things out for yourself. Pictures and statements are great. But there’s no substitute for seeing the state of things with your own eyes. Plan to meet with your rental manager to speak personally about how things are going and discuss any changes that need to be made.
Not only are frequent visits a great way to keep things in tip-top shape. They’re also a good excuse to take a vacation and start building up your anticipation for retirement, in your tropical dream home that’s now paying for itself.
Quick! What are the first five adjectives that come to mind when I tell you to think about the Latin Tropics?
All done? What were they? I’m guessing most of them were probably pretty positive. Words like “breathtaking,” “eco-diverse,” and “relaxing.” And those all describe the region quite well.
But there’s a small chance there may have also been a few negative attributes that popped into your head. Things like “unfamiliar,” “expensive,” or “muggy.” And those can certainly be valid descriptions of certain parts of the area as well. However, many of them might not be quite as prevalent (or even accurate) as you might think.
Let’s take a minute to debunk some commonly held misconceptions about living in the Latin Tropics. This should help you banish those negative terms from your vocabulary in favor of some more positive impressions about this incredible region.
1. The climate is unbearably hot and humid.
A commonly held misconception about the Latin Tropics is that it’s unbearably hot and humid everywhere you go. That couldn’t be further from the truth. Beating the heat in the Latin Tropics is as simple as changing your altitude.
While it’s true that most coastal cities can get pretty warm, there are plenty of fantastic places to live in the inland mountains and valleys that are so mild that most homes don’t even require air conditioning. All you need to do is open a window and let in the tropical breeze.
2. Everything is really expensive.
If your only experience in the Latin Tropics was at a fancy resort or in a highly developed city that’s popular with expats and tourists, it’s easy to think why you might hold this belief. But when you live like a local, it’s actually a very affordable place to call home.
In fact, the low cost of living is a factor that attracts many people, retirees in particular, to the region in the first place. Housing and utilities are inexpensive. Fresh produce is dirt cheap. You can even splurge on the services of a domestic helper, like a maid or gardener, for a fraction of what you’d pay for the same services in the U.S.
3. I can’t own real estate in the Latin Tropics.
This is another fact that many would-be expats incorrectly assume. In most countries in Latin America, foreign buyers have the same rights as citizens. They can buy property outright and, in some cases, even obtain financing.
There are some exceptions, though, like beachfront property and land within a certain distance from national borders. If you decide to buy, you’ll also need to be aware of property laws governing issues like “squatters” and other things that aren’t a concern in the U.S.
4. I need to learn Spanish before I can move there.
While it’s a good idea to know at least a few key phrases before beginning your expat journey, being fluent in Spanish is hardly a requirement. Most cities that are popular with expats and tourists are very friendly to English speakers. You won’t have a hard time getting your questions answered.
Once you’re settled in, you can start focusing on broadening your vocabulary. There are also plenty of language schools, tutors, etc. who can help you learn the lingo after you arrive. Not to mention, there’s no better way to learn than being immersed in the culture day in and day out.
5. The Latin Tropics are “disconnected” from the rest of the world.
Yeah, I get it. Quaint fishing villages and ethereal cloud forests don’t exactly scream “high-speed connectivity,” but you might be surprised by how far this region has come in recent years when it comes to things like Internet access and cellular coverage.
Many countries have seen government initiatives targeted at improving infrastructure and Internet connectivity. Most mid- to large-sized cities have cafes and other businesses that boast free wi-fi. And with all the technology available these days, it’s never been easier to keep in touch.
6. Locals don’t care for North Americans.
This could be the most ludicrous assumption that North Americans make about the people of the Latin Tropics. They’re an incredibly welcoming culture, eager to make new friends and share stories.
As long as you’re open to new people and ideas, you’ll fit right in with the locals in the Latin Tropics. Come across as an arrogant gringo, on the other hand, and they likely won’t give you the time of day.
7. It’s not safe there.
Unfortunately, the Latin Tropics has earned itself a bit of a reputation as a haven for crime and corruption. The reality, though, is that it’s cleaned itself up quite well and today is no less safe than your average North American city.
What crime that does exist is mostly drug- or gang-related and generally only affects those involved in those activities. The rest is mostly minor offenses like petty theft. In general, just stay away from the bad parts of town after dark, lock your doors, and don’t leave valuables lying around to tempt would-be thieves.
8. The Latin Tropics are not open for business.
Many people steer clear of moving to the Latin tropics because they’re afraid they couldn’t get a viable business up and running in order to sustain their livelihood. This is yet another false assumption. For the entrepreneurial expat, there are plenty of options for making money.
As more and more people move to the region from all over the globe, there’s a growing need for more businesses catering to expats and tourists. Everything from boutique hotels to dry cleaners. Investing in real estate is another popular option, as the savvy buyer can often score a great deal on land or homes.
Whether you’re worried about making ends meet, swatting at mosquitoes, or learning how to order a sandwich the way you want it, there’s no reason to let those fears or misconceptions keep you from realizing your dream of living in the Latin Tropics.
Plan a trip down to check things out for yourself. Get to know some locals. Have them show you where they buy their groceries. Ask them where it is and isn’t safe to go at night. Then pop into an Internet cafe to email your family and friends back home. Tell them to start getting excited about coming to visit you in your new home.
Expats thinking outside the box means finding destinations that can offer a combination of adventure and the challenge of living in a different environment. The Latin Tropics have a number of locations that can offer both an adventurous lifestyle and the opportunity to step outside your comfort zone.
The list below contains locations that range from rustic, provincial places, where you can immerse yourself in a new culture, to regions where high adrenaline activities are the theme of the day. These unique spots are not just for visiting but, for those who dare to try something different, places where even the most adventurous expats can find long-term fulfillment.
Locales for Expats Thinking Outside the Box
The list below is by no means exhaustive. However, these destinations are great examples of places where you can find more than just your run-of-the-mill expat hotspot.
VivaTropical
Boca Chica Island, Panama
For those looking to escape from the 24/2/7/365 rush of modern urban communities, Boca Chica, Panama is the perfect getaway. This 400-acre private island, just a mile off the Panamanian coast and six miles from the town of the same name, combines natural beauty, world-class sport fishing, snorkeling and diving, and tremendous investment potential.
Boca Chica’s close proximity to Enrique Malek International Airport in David makes it easy to access this lush tropical oasis. Once experienced, it is easy to see that Boca Chica is a desirable place for relocation.
texaus1
Crucita, Ecuador
Adrenaline junkies who are looking for a place that combines high energy sports with the ambiance of a small tropical fishing village will find that rare blend in Crucita, Ecuador. This beachside town has become known as a premier destination for paragliding and hang gliding with stretches of open beaches, constant Pacific breezes, and a number of businesses that cater to “gliders.”
Given the small population (12,000) and rustic beach lifestyle, Crucita may be the ideal spot for adventurers who are looking for the magic of that “endless summer” without the tourist-centric atmosphere that many beach towns have. More than just a place to visit and play, Crucita has potential for investment while maintaining the irresistible draw of being a location where high-flyers can spread their wings.
Zanzabar Photography
Santa Teresa/Mal Pais, Costa Rica
Nestled on the southern tip of Costa Rica’s Nicoya peninsula, Santa Teresa (and the surrounding region of Mal Pais) has become a haven for those expats seeking a life less cluttered. The region around Santa Teresa has become a go-to spot for surfers from all over the world seeking to find that perfect wave without the over-development that marks so many beach communities in the region. Surf camps and shops are plentiful; there are even two surf camps – Chica Surf Adventures and Pura Vida Adventures – that are for women only.
The perfect balance to the high-energy world of surfing, the region has also become home to a growing number of yoga retreats and alternative health spas. Close proximity to the first national park in Costa Rica, Cabo Blanco Absolute Nature Reserve and Curu Wildlife Refuge, provides special opportunities to experience a wealth of biodiversity.
Needless to say, this symbiotic merging of meditation, natural wonders, and adrenaline sports has made the Mal Pais region a popular place to visit and play. While there is an increasing push to develop more contemporary living in Santa Teresa, it is still possible to live there and immerse yourself in the eclectic ambiance of rustic small villages where the spirit of “pura vida” remains alive and well.
Paul Krawczuk
Galapagos Islands, Ecuador
Nature lovers could ask for no better place to live than the Galapagos Islands, off the coast of Ecuador. While the Galapagos archipelago is made up of 19 islands, only five are inhabited: Baltra, Floreana, Isabela, San Cristobal, and Santa Cruz. The largest city, Puerto Ayora, home to about 10,000 people, is located on Santa Cruz.
Long admired as one of the premier destinations for wildlife viewing, this group of islands is home to various types of plants and animals found nowhere else on Earth. The few villages and towns scattered throughout the archipelago are rustic settlements that are reminiscent of an earlier, less complicated time.
Living in a location that is unsullied by modern construction, surrounded by a unique and biodiverse environment, seeped in historical relevance, is what a move to the Galapagos Islands promises. More than just a place to visit, these islands can be a retreat from the modern world like no other place on Earth.
Luis Penados
Lake Atitlán, Guatemala
Labeled by such figures as Aldous Huxley and Alexander Von as being the most beautiful lake in the world, the highlands area of Lake Atitlán, Guatemala has become a favorite for expats looking for a unique destination off the beaten path. Located in the Sierra Madre de Chiapas mountain range, the Lake Atitlán area has a cooler, less tropical climate that may appeal to expats who find the heat along the coast less inviting.
The nine villages that surround the lake offer both a rustic lifestyle and a chance to become immersed in the local Mayan culture like nowhere else in the region. Being able to see and experience Mayan culture, not just as a tourist presentation, but as a way of daily life, is a profound experience that cannot be had in many places in the world.
Less developed than other parts of Guatemala, this region holds great investment potential for those who are intrepid enough to create their own version of a Latin Tropics escape. Balancing growth while maintaining the special cultural vibe of the region is a focus of the area’s residents, and it shows.
Bernard Dupont
Sanctuary Belize, Belize
Nestled between Mexico and Guatemala, the tiny country of Belize melds a unique blend of eco-lifestyles, adventures on land and sea, and Mayan ruins. Formally known as British Honduras, Belize is unique in that it is the only Latin Tropic country where English is the official language.
Belize offers a diverse selection of things to see, do and experience. Numerous Mayan ruins await those who wish to see the remnants of this amazing culture up close and personal. For those looking for aquatic adventures, the Belize Barrier Reef is the longest barrier reef in the Western Hemisphere and second-largest in the world behind Australia’s Great Barrier Reef.
Sanctuary Belize has become a unique experiment combining eco-tourism and a “green” lifestyle on its 14,000 acre location. Having the opportunity to live green in the tropics while enjoying the natural beauty of Belize is certainly an exciting option for expats looking for something more than just an oceanfront existence.
Dare to Think Outside the Box
One of the best parts of the expat experience is discovering new vistas and new ways of living that can take you beyond the life you had before. Visiting these locations (or others that peak your interest) can be the first step to leaving your comfort zone to find your own road less traveled.