ronan mcmahon

When I see screaming Wall Street floor traders and the ceaseless shuffling of ticker boards, I wonder why anyone would invest in stocks. Real estate is less volatile, offers more upside historically, and—if you own international real estate—it’s much, much more fun.

A condo next to a white-sand Caribbean beach… a château in France’s Loire Valley… or a mountain retreat in Ecuador. What’s better than an investment in paradise?

I own a beachfront condo on Portugal’s Silver Coast and another in Cabo, Mexico with awesome ocean views. Each pays its own way by throwing off rental income when I’m not using it, and each would deliver six-figure gains if I decided to sell. Most importantly, they’re both places I love to spend time.

Owning a home in a beautiful part of the world is more thrilling than owning a vintage Aston Martin and more enjoyable than owning a 1947 bottle of Cheval Blanc Bordeaux—which investors can’t even wet their lips on without destroying the value.

Real estate is the asset you can live in. It saves you money while it makes you money. You can rent it out short- or long-term. And if you buy right, you can make a big profit when you decide to sell. I’d argue it’s the most versatile and dynamic asset class there is. There are so many ways to play any given real estate market.

As I write, I’m back in Ireland, where a decade ago I witnessed one of the greatest buying moments ever seen in Europe…

The collapse of the Irish real estate market in 2008/09 led to a flood of fire-sale auctions a few years later, with prime properties selling for as much as 70% less than previous peak prices.

It gave my Real Estate Trend Alert group an incredible window. Ireland was in the middle of a decades-long transformation that saw it jump from being one of the poorest countries in Europe to one of the richest. And my group was there to buy in at the very bottom.

We saw grand 18th-century manor homes listing for $535,000 that today would be worth millions. Vacation homes that have since quintupled in value. And condos at the heart of Dublin’s financial district listing for as little as $179,000—today they’d be worth close to $500,000.

Today, Ireland has some of the most expensive real estate in Europe. But even still there are opportunities. You just need to know where to look and get creative…

For instance, I uncovered a profitable opportunity to own an Irish pub. The play is to buy a traditional pub at fire-sale pricing, do it up, and turn it into a short term rental, catering to party groups and tourists. Existing examples of these pub rentals charge as much as €600+ per night on Airbnb. And as I write, there’s a historic thatched-roof pub that dates back to 1845 listing for €195,000 ($208,940).

Or how about letting the Irish government pay for your cottage renovation? You can claim a grant of €50,000 ($53,575) to renovate a vacant Irish property and up to €70,000 ($75,000) if the property is derelict. It’s a great way to own an affordable Irish country cottage or farmhouse.

Or, if you want a newer property in a resort community, try this… Buy what’s classed as a “holiday home.” These are essentially tourism infrastructure, but they’re cheaper than regular homes because you can’t live in them year-round. They’d be perfect for someone looking for a part-time home that can also throw off good short-term rental income.

There are infinite possibilities, wherever in the world you want to be… whatever your budget, whatever your needs.

For me, international real estate investing is as much a lifestyle as it is an investment. I could have retired years ago thanks to the income it generates. But I continue to scout the world in search of new opportunities. I don’t drink wine or drive vintage cars, but live how I please in stunning parts of the world… and that’s priceless.

Where to Find Value Properties in Spain

◼ Karen asks: Hi Ronan, what are the best places in Spain for good value real estate?

◼ Ronan says: Hi Karen, Spain offers some of the best value real estate in Europe. In some of the interior provinces, such as Córdoba, Toledo, or Cuenca you’ll find plenty of homes for under $150,000. Even less in mountainous regions like northern Aragón.

But value is always relative and depends on what you’re looking for. Most expats tend to cling to the southern coast for its Mediterranean climate and beautiful beaches. If you like the idea of a Spanish city with a beach and good weather, and relatively low-cost real estate, I’d suggest checking out the old walled city of Cádiz. Along with its in-town beach, you’ll find Roman ruins, imposing churches, cobbled lanes, shady parks, and trendy tapas.

For a slightly cooler climate, try some of the whitewashed hill towns a few miles back from the coast. Towns like Vejer de la Frontera offer surprisingly good value and are still just a short drive from Mediterranean beaches.

But like I say, value is relative. Most of the Spain recommendations I make to my Real Estate Trend Alert group are on the Costa del Sol. Not because it’s cheaper—it’s not—but because it offers the strongest profit potential. It’s among the most internationalized places in the world, attracting millions of visitors each year, thanks to its sunshine and beaches.

Its popularity has been a huge driver of profits for savvy investors. One RETA member bought here to qualify for Spain’s Golden Visa. He has sold two of his three condos at nice profits. He bought a Los Flamingos condo at €225,000 and sold at €390,000 and a Casares Beach condo at €186,000 and sold it for €299,000. He rents his Duquesa Village condo short-term…

So, when you’re looking for value, don’t just look at the price tag. Consider how the right real estate might benefit your lifestyle in other ways too.

Editor’s Note: Ronan McMahon is the editor of Real Estate Trend Alert and a contributing editor to IL. Email Ronan with your real estate questions and comments at mailbag@internationalliving.com. We may publish your question along with Ronan’s reply in IL Postcards or here in IL Magazine.

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