Buying Real Estate Overseas For Cash Flow (And A Better Life)

13Where a Strong Dollar Creates Opportunity

If you're holding U.S. dollars, you have a window of opportunity right now to take advantage of super-charged buying power in key overseas markets. The dollar's current strength is creating irresistible bargains in some countries where real estate trades in the local currency. We refer to this temporary distortion (no one can predict how long it will last but you can be sure it won't continue forever) as a “currency discount.” It's a metric we watch closely, and it amounts to a big, bold “Buy!” signal.

The difference of a percentage point or two in the rate at which one currency is able to buy another isn't going to change your lifestyle day to day, but, when buying property, even 1% can start to look like real money.

To put the current opportunity into perspective, the U.S. dollar is up a whopping 83% versus the Brazilian real, for example, since 2011.

Strong Dollar Buy #1: Brazil

Brazil is perhaps the world's best beachfront buy. How many places worldwide can you buy on the beach for $100,000 or less? That's the potential in Brazil, where beachfront property is not only super cheap but also ultra in demand. That bargain-priced beach house or apartment could earn you a double-digit net yield from rental.

Part of the reason beachfront can be so affordable is the country has so much of it, so you need to be discriminating. Don't settle for just any of Brazil's beaches. Research the rental demand and who your buyer might be when you ...