5 Exotic Places to Buy Cheap Real Estate Right Now

Imagine walking down cobbled streets framed by centuries-old architecture, with a view of the sea in the distance. And it's not a vacation or a dream - it's your home. And yet it hasn't cost you much at all. If you've ever dreamed of buying an affordable home abroad and moving there to live the expat life, 2023 is a great time to buy property around the world at low prices, according to international real estate expert Ronan McMahon.

"Quality real estate in high-demand locations is becoming scarce, but demand is increasing at the same time," McMahon told me in an interview. "We can still buy at a significant discount compared to similar locations and properties in the U.S., but that window will close soon."

With more than two decades of experience and more than $2 billion in real estate transactions, McMahon knows the pulse of the global real estate market like no one else. He is the editor of Real Estate Trend Alert, which tracks the world's best places to invest in real estate, a trusted associate of International Living and the author of three books on international real estate. At the recent International Living conference, McMahon unveiled his new special report, "Best Places to Buy Real Estate in the World in 2023," in which he shared his top global real estate picks for 2023.

According to McMahon, there is no magic formula when it comes to buying real estate overseas.

"There is no magic trick to finding profitable opportunities in real estate. It requires countless hours of research, lots of travel to explore new places, strategic thinking and a deep knowledge of different real estate markets," says McMahon. "Each country has its own unique market conditions, so thorough legal research is essential before making an investment."

So, why should you buyreal estate abroad and live abroad?

"For me, it's the perfect path to freedom, both financial and personal," McMahon says. "Freedom to do what you want, when you want. Freedom from worry and stress, from worrying about what's going on in the stock market or the 24-hour news." Here, McMahon shares her picks for the five best places to buy inexpensive real estate in the world right now.

Montenegro

Location: "On the east coast of the Adriatic Sea, the European Dalmatian Coast is an extraordinary coastline with islands stretching from the Croatian city of Zadar to the Bay of Boko Kotor in Montenegro," says McMahon. "It is one of Europe's most spectacular landscapes, incorporating charming cities such as Split, Sibenik and Dubrovnik." In the early 2000s, real estate buyers bought up all real estate in Croatia, acquiring opportunities in historic Dubrovnik and Split. "Today, the situation in Croatia has changed. Property prices have leveled off with other Mediterranean destinations," says McMahon. "However, things are different on the southern Dalmatian coast. Montenegro is as beautiful as Croatia, but because it hasn't yet joined the European Union, it hasn't succeeded in the same way as Croatia, and real estate prices here are still relatively low."

Cost: In Croatia in the late 1990s and early 2000s, you could buy an apartment with a water view for the equivalent of €100,000. "Today you will have to pay several times more. However, in Montenegro you can still find houses overlooking the most beautiful bay for €100,000," says McMahon. He believes Montenegro is now a long-term real estate investment play. "The value of developable land around the Bay of Boko Kotor is still extremely low by international standards," he says. "You should expect costs of €80 to €100 per square meter (or about $8 per square foot) for land with a view, located 15 minutes from the town of Kotor. Then you just wait for development to start and prices go up."

Insider tip: Rumors are circulating that Montenegro will join the European Union by 2025, making it an interesting investment proposition. "If Montenegro enters the EU, you can expect strong price appreciation," says McMahon. "I believe you have the opportunity to triple your money or even more in five to 10 years."

Silver Coast, Portugal

Location: Located between Lisbon and Porto, Portugal's Silver Coast stretches about 150 miles from Santa Cruz to Espinho.

Cost: The cost here is hard to beat. Prices are noticeably lower than in Lisbon or the best places on the Algarve," says McMahon, who bought the ocean-view apartment in October 2020. "Total monthly payments (including mortgage, taxes, management fees and golf club membership fees on two beautiful courses) were just under €1,110 (about $1,175)." According to McMahon, with a budget of €100,000 to €150,000 (about $105,666-$158,499) you can buy a traditional home in the neighborhood. And for €200,000 (about $211,333), you can find a place by the beach with an ocean view. Another plus: "You don't have to pay cash," says McMahon. "Banks in Portugal are willing to provide mortgages to foreignreal estate buyers, just as they are in Spain."

South Zone, Costa Rica

Location: Costa Rica's South Zone stretches three hours south of the capital city of San Jose and includes the towns of Jaco, Manuel Antonio, Dominical, Uvita and Ojochal. "The southern zone offers everything tourists and second-home buyers need in Costa Rica," McMahon says. "There are pristine beaches, sharp forested mountains, national parks and wildlife right at your doorstep, and the opportunity to engage in a variety of outdoor activities (scuba diving, hiking, horseback riding, wildlife watching)." For decades, the area was left out of Costa Rica's other tourist destinations that were easier to get to. "The new highways have opened it up to a wider audience," McMahon says. "But it's still little-known and unique. It has international cuisine and an active expat scene. You won't find huge shopping centers, fast food or urban development here."

Cost: "Experienced buyers are buying homes here to spend the cold winter months here in North America," McMahon says. "And some are buying properties to invest and generate income." According to McMahon, a mountain-view lot in the South Zone costs about $40,000. With a budget of $150,000 to $200,000, you can buy a two- or three-bedroom home with a pool. In the $250,000 to $300,000 price range, there is a choice of homes, from modern eco-designs to two-story homes with pools.

Insider tip: "The government plans to keep this magnificent area natural. And finding land for development and getting permits can be difficult. So you should go with a reputable real estatedeveloper with a good reputation," says McMahon. "Building a custom-designed home will give you everything you want and will have maximum appeal to renters. A well-appointed house with a pool here can generate good rental income."