Kathleen Peddicord, founder of Live and Invest Overseas, picks six of her cheapest places to invest in property overseas in 2022, all focused on South America.
Granada, Nicaragua
Cost per square meter: $497
Price change in 2021: Decreased 29%
Property trades in: USD
Minimum Investment: $60,000
Central America's largest country, Nicaragua boasts two coastlines, the largest freshwater lakes in Central America, rainforest, jungle, and 19 active volcanoes. Colonized by both the Spanish and the British, Nicaragua gained independence in 1838 and has since suffered through dictatorships, guerilla war, political unrest, and devastating natural disasters. The situation today is again unstable, keeping tourists and investors away, pushing property values way down, and creating a moment of crisis opportunity.
The 16th-century Spanish-colonial city of Granada is Nicaragua's crown jewel market and the world's best property bargain in 2022. Granada is safe, clean, welcoming, and comfortable with year-round warm weather and shops and services to support travelers, second-home owners, and expat retirees.
Desirability of a property is measured by its distance to the central plaza and cathedral, so stay within a few blocks of the plaza. Next-best location is Calle La Calzada, with its restaurants, cafes, and nightlife.
Nicaragua is not for the faint of heart right now but represents the best buy-on-the-dip opportunity of 2022.
Santa Cruz, Bolivia
Cost per square meter: $1,062
Price change in 2021: Increased 2%
Property trades in: USD
Minimum Investment: $80,000
Like Granada, Santa Cruz is a 16th-century Spanish-colonial city. It's also the center of Bolivia's wealth and one of the world's fastest-growing cities, producing about one-third of Bolivia's GDP and receiving most of Bolivia's Foreign Direct Investment. The city offers an opportunity for geopolitical and economic diversification, as it is well outside the U.S. sphere of influence. It's a great Plan B location as well as a solid rental market thanks to big numbers of business travelers and local government workers.
Real estate in Santa Cruz trades in U.S. dollars, so you're not exposed to exchange-rate volatility.
Focus your search around the central square, Plaza 24 de Septiembre, for walkability and proximity to government offices and tourist sites.
Santa Marta, Colombia
Cost per square meter: $1,148
Price change in 2021: Decreased 13%
Property trades in: COP
Dollar's buying power: Increased 11%
Minimum Investment: $90,000
Colombia is best known for its most infamous son, Pablo Escobar, but investors should ignore that phase of the country's history. Colombia today is a safe and
stable democracy with a strong economy supported by a powerful industrial base and abundant natural resources.
The Caribbean city of Santa Marta offers severely undervalued seafront properties ideal for tourist rentals. Values decreased 13% in 2021, but a full 11% of that was due to the dollar's increased buying power.
The best rental investments are in the heart of the city's historic center and south, in El Rodadero, two areas favored by foreign tourists.
Arequipa, Peru
Cost per square meter: $1,256
Price change in 2021: Increased 4%
Property trades in: USD
Minimum Investment: $75,000
Founded by Pizarro in 1540, Arequipa, Peru's second-largest city and third-largest tourist destination, maintains its original colonial charm. A UNESCO World Heritage Site, Arequipa is known as the Ciudad Blanca, thanks to its many white stone buildings. The central plaza is clean, vibrant, and busy.
This is a city of eternal spring, with 300 sunny days per year, situated at an altitude of 2,300 meters, making for impressive vistas but creating a health risk for anyone with respiratory ailments.
Cuenca, Ecuador
Cost per square meter: $1,285
Price change in 2021: Increased 15%
Property trades in: USD
Minimum Investment: $95,000
Cuenca, with its year-round cool Andean climate, is recognized as one of the world's top retirement destinations. The thousands of North American and European expats in residence create a strong rental pool.
This former Inca capital was settled by the Spanish in the mid-1500s, and the walkable historic center retains its colonial charm. The influx of expats has changed the character of the city but has also led to the opening of cafes and restaurants, making the city more appealing than ever for both residents and tourists.
Prices rebounded in 2021, after a pandemic-inspired downturn in 2020. But, at $1,200 per meter for good quality homes and an enviable lifestyle, Cuenca is still hard to beat.
Rentals are judged by their distance from the town square and walkability to the historic center. Unlike in many overseas markets, the best rentals are long-term. Most property owners want to spend at least part of the year in Cuenca and are reluctant to take on long-term renters, creating an under-supply for that demand.
Fortaleza, Brazil
Cost per square meter: $1,300
Price change in 2021: Decreased 8%
Property trades in: BRL
Dollar's buying power: Increased 7%
Minimum Investment: $85,000
Fortaleza is the gleaming centerpiece of Brazil's northeast coast. As viewed from across the bay, its glistening buildings stand in sharp relief against the deep blue skies, sandy beaches, and emerald waters. The ocean is warm and calm all year, and the beaches are clean, popular, and well-maintained.
Just a few blocks inland are attractive tree-lined streets, parks, and homey neighborhoods, with fine dining, sidewalk cafes, and modern shopping malls.
Aldeota is a top choice for a rental buy. It's got all the amenities your renters could want and is just a few blocks from Iracema beach.
