Uruguay Delivers Million-Dollar Luxury… And the Truth About Overseas HOA Costs

◼ Lee C. asks: Hi Ronan. I was glad to see your scout Ciaran was in Uruguay. I’ve been interested in that country for a while now. I’m looking at acreage near the ocean and a town/city with medical, groceries, and restaurants available. I’d like it to have a newer three-bed home with water like a stream or lake on the property.

I have about $1 million US (maybe $1.5 million) to work with. A ranch-type property would be good. If you come across something interesting, let me know please.

◼ Ronan says: Hi Lee, Uruguay is a country that has been on my international real estate radar for decades now. And I think it’s one of the most overlooked and undervalued destinations on my global beat. Which was why I sent Ciaran to put boots on the ground there.

Though tiny Uruguay flies under the radar, it’s the wealthiest country (per capita) in South America, according to the International Monetary Fund, and the most democratic, according to The Economist. It’s also incredibly beautiful, with a long Atlantic coastline dotted with luxury resorts and pristine golden- and cream-colored beaches.

This is a safe and prosperous place that combines the quality of life you get in Europe with the culture and vibrancy of Latin America. It’s a “Portugal for South America”—the lifestyle and investment opportunities here are incredible.

Lee, to answer your question, my team had a look for some properties with the criteria you provided to give you an idea of what’s on the market right now.

About 11 miles from the famed beach resort town of Punta del Este is this four-bed, three-bath home with 3,200 square feet of living space set on a 5-acre lot. The property has a small lake and an outdoor swimming pool and the nearest beach is about seven miles away. It’s on the market for $880,000. (Listings current as of this writing.)

They also found this 190-acre ranch, with a four-bed, three-bath house of 5,400 square feet in La Paloma, just 12 miles from the coast and 6 miles from the town of Rocha. It’s a working ranch and is being sold with a fleet of vehicles and machinery. The listing price is $1.25 million.

If you decide to opt for something smaller and more lifestyle-focused, Ciaran also toured a farmstead project in the Rocha region of Uruguay. This is an opportunity to own plots ranging from around 12 to 15 acres in a stunning location set amid undulating hills with a view of a protected lagoon.

These plots are private and secluded, but still close to towns and amenities. You’re just east of the city of Rocha… the beach town of La Paloma is just 35 minutes south… and you’re about 30 minutes from Garzon, a small, picturesque agricultural community that’s seen an influx of wealthy buyers in recent years. Prices for these lots range from $58,650 to $77,050.

All the details of Ciaran’s trip to Uruguay are in a comprehensive Uruguay scouting report, which Real Estate Trend Alert (RETA) members can read here. (If you’d like to become a RETA member and get access to Ciaran’s report, as well as access to members-only deals, and much more, all the details are here.)

◼ Melissa T. asks: Hi Ronan and team. I’m curious about the cost of maintaining a property—especially the fees paid to Homeowners Associations (HOAs) or Condominium Associations. In some cases, those fees can really add up.

◼ Ronan says: Hi Melissa. You’re absolutely right to ask about this—it’s an important piece of the puzzle. Just like in the US, HOAs are common in residential developments overseas. But there’s a big difference: abroad, HOA fees are often much lower. Sometimes dramatically so.

Take places like Florida or California, where it’s normal to see HOA fees hitting $500, $800, even $1,000 a month in amenity-rich communities with things like a pool, gym, and nice clubhouse.

But overseas? It’s a different story.

As an example, let’s look at one of the best-in-class communities members of RETA had the opportunity to own in recently.

In Monte Rocella—a luxury community in Cabo—the list of amenities includes an infinity pool, multiple sun decks, bar lounges, a co-working space, yoga decks, and fully-equipped gym.

Yet HOA fees there are projected to run just $1.90 to $2.60 per square meter each month. For a 1,064-square-foot, two-bedroom ocean-view condo, that translates to around $188 to $257 a month.

Or look at my own experience in Portugal: I bought a condo in the stunning Praia D’El Rey community along the Silver Coast for €300,000 ($339,360). It’s right on the Atlantic, packed with amenities… and my HOA fees? Just $263 a month.

Of course, fees will vary depending on the property and location. But overall, when you invest internationally, you’ll save thousands of dollars every year compared to US properties.

Editor’s Note: Ronan McMahon is IL’s international real estate expert and founder of Real Estate Trend Alert. If you have real estate questions and comments, email Ronan here. We may publish your question along with Ronan’s reply in IL Postcards or here in IL Magazine.