Your Ultimate Guide to Investing in South America Real Estate

Your Ultimate Guide to Investing in South America Real Estate

You’re a real estate investor in the United States. You have an investment foothold in 10 states. However, you’re tired of the market fluctuations. You’re looking for other places to invest.

At a networking event, another real estate investor mentioned South America real estate. You’re intrigued, but you have never invested overseas. And, you have no idea where to invest.

Where do you begin?

South American nations that are friendly to investors include Colombia, Brazil, Chile, Argentina, and Ecuador. These are nations that have friendly relations with the United States.

Moreover, certain South American nations extend the same rights to foreign investors as native citizens.

This article will show you the best land for sale in South America. Let’s explore.

Why is South America a Great Place to Invest?

South America’s economy has surpassed Asia in terms of growth. Due to the emerging economies within South America, investors will see long-term growth going forward.

Also, experts expect growth in Latin America between 2019 and 2021. Nations such as Brazil have a rising economy and thriving middle class.

The continent has a rich mix of diverse cultures that attract many people from around the world. And, the pristine beaches and mountainous landscapes draw in many tourists.

Moreover, the South American market hasn’t reached its peak, unlike the United States.

Additionally, congestion in urban centers has forced many South American nations to invest in housing. As a result, Latin American governments are relying on foreign investors to meet housing demands. These nations also have plenty of cheap homes for sale.

If you’re looking for less investor competition, however, South America is a prime location. However, this will change as the market heats up in various nations.

Each nation has its rules and restrictions. And, some are more stringent than others.

Example: In nations such as Paraguay and Uraguay, you must co-sign with a native citizen in order to own property. And, you must pay up to six months’ rent in advance in certain cases.

For the most part, however, standards are lenient when it comes to investment.

The benefits of South American real estate include:

  • Tax benefits
  • Business-friendly climates
  • Cheap real estate

You can find the cheapest real estate in Latin America in Bolivia, Ecuador, and Colombia. With that, where you invest depends on how you intend to invest.

How Can I Enter the Real Estate Market in South America?

In many cases, you only need a visa or permanent resident status to invest in the South American market. And, you’re entitled to the same tax advantages as citizens. Many governments offer lower taxes to investors who conduct business in the nation.

With that, check the local and national advantages. For instance, Ecuador will offer you a visa if you invest $31,000 in real estate. From there, you can obtain citizenship in three years. Colombia, on the other hand, grants visas if you invest around $170,000 in real estate. The Colombian visa would be valid for five years.

What Are Some Good Investment Opportunities in South America?

Investors can choose the following business avenues:

  • Tourism sector
  • Rentals
  • Construction

When it comes to tourism, search for areas that have stellar attractions, such as beaches or mountains. And, study the tourist numbers each year to see how local tourism economies perform. Most governments will give advantages to investors who choose to invest in the tourist industry.

One such country is Uraguay, which has seen steady growth in recent years. Uruguay also has a steady real estate market and has consistent economic growth.

Santa Cruz, Bolivia is a prime rental hub due to its rapid growth and rich cultural sites. Further, Santa Cruz real estate is based in U.S. dollars, which eliminates instability from exchange rates.

If you choose the rental route, you can rent your acquired property to local tenants or vacationers. However, check the local landlord and tenant laws before investing in real estate.

And, you may have to pay direct cash to acquire your investment. Further, you may have to put down as much as 30 percent in certain cases. With that, you can gain residency with a simple purchase of a property in some cases.

The construction sector has seen lucrative gains due to the rising status of many South American nations. With economic growth comes the need for new homes and commercial buildings. In particular, the construction of beach homes has become a popular choice among real estate developers.

Also, you could invest in luxury real estate, as the wealthy flock from all over the world to various parts of Latin America. You could invest in luxury resorts or high-end homes to cater to a wealthy clientele.

Regardless of the region, choose a location that has strong economic indicators.

Look for such factors as:

  • Job growth
  • Industry diversification
  • Tourist attractions

And, search for locations where foreigners are buying permanent residences. Governments need investors to provide housing to expatriates and retirees.

Can I Retire in South America?

Retiring in South America is a lucrative option for many foreigners. For one, the cost of living is much lower in South America than in North America and Europe.

And, government officials encourage foreigners to retire in their nations.

As an investor, you can offer homes to incoming retirees. Or, you can retire in South America and rent out properties as a primary source of income.

Due to lower rents and the lower cost of living, you can have a steady flow of incoming tenants from other parts of the world. Moreover, you can capitalize as more baby boomers retire and seek permanent retirement homes in places like South America.

Where is the Best South America Real Estate Market?

The best South America real estate market depends on your investment endeavors. For tourist rentals, choose real estate near the beaches or the mountains. You can also invest in rising economies like Brazil and contribute to the construction sector.

Regardless, research the local laws, as some restrictions are more strict than others. Overall, South America is a welcoming place for foreign investors.

Interested in learning more? Read more of our articles about homes and real estate.

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