Owning more than one property means being able to vacation whenever. But now, with US real estate prices and mortgage rates rising, your ideal second (or third) home may happen to be abroad.
Living abroad has numerous benefits, like being able to learn about a new culture, having a private holiday spot, and maybe gaining a second citizenship. For those who have never considered living abroad, one powerful incentive is something you’d be hard-pressed to find in the US: a low price.
Renting out foreign real estate can also be an income stream. But be cautioned that you should always use a local licensed real estate agent and lawyer when buying a home overseas.
Travel+Leisure and expert agents throughout the world found eight of the greatest, most inexpensive, and dreamiest places for your holiday home search. Without further ado, here’s the list:
Mexico
With its white-sand beaches, thriving food scene, rich culture, and fascinating history, our southern neighbor is a second-home paradise. Due to its easy access from the U.S. (multiple airlines have daily direct flights to Cancun International Airport), growing inventory, good infrastructure, and high quality of life at a reasonable price, vacation homeowners and ex-pats alike are flocking to Cancun and Playa del Carmen.
Cancun, Playa del Carmen, and Tulum are a few of the most active real estate markets in the world, with more than 10,000 sales each year. Properties in these areas are good investments; studios in these locales cost the equivalent of $150,000, while one- and two-bedroom flats cost roughly $200,000 to 280,000, and large homes can go for more than $500,000.
Italy
You may have seen a viral story on CNN or elsewhere about houses for $1 in Italy. If you thought it was too good to be true, it’s not; the prices are quite real. But, as with most great deals, there are a few catches.
First of all, most of the houses for $1 are in towns that aren’t close to large population centers. Think picturesque ancient villages, albeit with few other villagers around. Meager populations mean limited (or no) stores, few public services, and even (quite possibly) a lack of Internet!
Yes, these houses may be cheap, but most of them are in need of repair, and the towns that are selling them have requirements about how much of the year you may need to reside there. There may also be age and other restrictions (these towns are looking for young new inhabitants, especially those that might have children in the future).
Some of these towns are located in the mainland of Italy, while others are in Sicily. The Mediterranean’s largest island off southern Italy is known for its authenticity, unspoiled nature, culture, and cuisine.
On the other hand, if you desire cosmopolitan culture and a faster-paced lifestyle, you may want to live in a city. In Sicily, up-and-coming locations like Menfi, Sciacca, and Cefalù are cheaper than Noto, Taormina, and Palermo. In some of these cities, prices can run from 2,000 to 3,000 euros per square meter, and a 150-square-meter property can range from 350,000 to 500,000 euros, or between $372,870 and $532,673.
St. Martin
This beautiful Caribbean island, divided between French and Dutch sides, has a diverse culture and lush mountains. St. Martin (St. Martin in English, Saint-Martin in French, and St. Maarten in Dutch) has numerous affordable vacation property possibilities for individuals who want to come more than once a year. There’s a large inventory of homes, a healthy rivalry between the island’s two markets, and tax incentives.
The Caribbean Real Estate Association reports that the typical price of a single-family house in St. Maarten is $550,000, cheaper than in the Bahamas or the Cayman Islands. Potential purchasers can find condominiums for $200,000 on the Dutch side or a bit more than $100,000 for a modest studio on the French side, where prices are higher.
Thailand
Thailand is the ultimate beach location, with over 1,000 idyllic islands in the Andaman Sea and Gulf of Siam. The exotic cuisine, generally happy people, investor-friendly regulations, and inexpensive cost of living (and real estate) explain why so many Westerners have made it their second home.
Purchasers may be able to score a property with a pool in the famed Samui islands for $200,000. Phuket is another popular destination for Americans, in particular.
Japan
In Japan, a negative birth rate and gradual migration to the island nation’s cities have meant that some rambling homes in the country’s rural regions have, in many cases, literally been abandoned, and municipalities are happy to give these dwellings away for free (with conditions) to the right parties.
If you think life in rural Japan sounds alluring, you might want to visit before committing yourself to a property sight unseen. But the pristine natural surroundings, relatively temperate climate, and friendly local population may be appealing. In most cases, there are transportation options to the urban centers that Japan is famous for and ample opportunities to immerse yourself in Japanese culture.
Montenegro
Research on growing second-home markets will likely turn up record property sales in Eastern Europe, including in Montenegro. It’s clear why one of Europe’s smallest nations is a holiday destination, particularly for sailors and boat owners.
Montenegro boasts fantastic weather, a laid-back lifestyle, and a unique blend of sea and mountains in a compact territory. In the spring, it may even be possible to swim in the sea on the coast and ski in the country’s mountains on the same day.
The Bay of Kotor’s port and stunning Adriatic shoreline have made Montenegro one of Europe’s top sailing destinations. Montenegro is becoming a popular holiday spot because of various high-end projects, including Luštica Bay and Portonovi, now home to a One&Only resort.
For affordable housing, try looking beyond large projects. In Tivat, a 1,044-square-foot two-bedroom/two-bathroom apartment with unimpeded sea views and a rooftop patio was recently put on the market for 360,000 euros, or $383,240.
Portugal
Portugal’s tourism has grown in recent years. Over 300 days of sunlight annually, beautiful sandy beaches, great food and wine, attractive tiny towns, and intriguing culture await visitors. Due to its stunning scenery, low cost of living, and various outdoor activities, Portugal’s southern Algarve area is a popular second-home vacation spot.
Vilamoura, Carvoeiro, Lagos, and Albufeira are the most sought-after locations to buy property in the Algarve due to their abundance of resorts, golf courses, and other amenities. If you’re searching for a calmer, more inexpensive place to live in this region, there are plenty of smaller towns and villages to choose from. Buyers can choose from older houses to modern new apartments and villas.
Bulgaria
This little Eastern European nation, about the size of Tennessee, is rich in history and has over 230 miles of picturesque Black Sea coastline, breathtaking mountain ranges (including the highest peak on the Balkan peninsula), and Europe’s oldest wine area. Bulgaria has the second-lowest cost of living in the EU and is a member of the EU (but not the eurozone). Real estate here is appealing too.
The country boasts Europe’s lowest average price per square meter — between $1,200 and $3,500, or $140 to $325 per square foot, depending on the property type and region. Bansko, Borovets, and Pamporovo are popular winter destinations, as are the northern and southern Black Sea coasts near Burgas and Varna. (Bansko is popular because it has world-class ski facilities and is just two hours from the country’s capital, Sofia, and Northern Greece’s most gorgeous beaches.)
Greece
Crete, Greece’s biggest island, has stunning sea views, dramatic scenery, and quiet getaways. Ancient ruins on Crete are among the most spectacular in the world, and the island’s museums and cultural sites are sure to please history buffs and art enthusiasts alike. Europe’s oldest city, Knossos, lies just outside Crete’s capital, Heraklion.
Although Crete’s real estate market is hot, you can still get a deal, particularly in the south, where there are fewer tourists. The typical price per square meter is 6,429 euros (about $636 per square foot), but in some places, it may drop to 2,727 euros (about $270 per square foot).