RealtyCast Global #14: Exploring Real Estate Investment Opportunities in Central America with Michael Cobb
Welcome to episode #14 of RealtyCast Global – a global connection to all things real estate, hosted by Hugh Gilliam, president of Global Property Pros.
In the latest episode of RealtyCast Global, we explore the multifaceted landscape of real estate investment in Central America. With a keen focus on perception and knowledge, the episode delves into strategies that can help investors unlock lucrative opportunities in this dynamic region. From contrasting property values in Costa Rica and Nicaragua to highlighting Belize’s burgeoning market, the episode is packed with valuable insights for anyone considering a real estate investment in Central America.
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Purchase Michael’s newly released book How to Buy Your Home Overseas: And Get It Right The First Time; click here.
The episode kicks off with a critical discussion on the concept of “buyer beware,” emphasizing the importance of being well-informed before making any property purchases. Drawing from the Overseas Investment Guide, the hosts discuss how perception often dictates property prices more than actual safety or quality. For instance, despite similar crime statistics, properties in Costa Rica are significantly more expensive than those in Nicaragua, largely due to perception. The discussion underscores the importance of understanding these perception gaps and staying ahead of changing perceptions to capitalize on the best opportunities.
Next, the episode shifts focus to investment strategies in popular versus less popular locations within Central America. The hosts compare the immediate costs and long-term returns of investing in high-demand areas like Costa Rica with those of under-the-radar spots like Nicaragua. They highlight Belize, particularly Ambergris Caye, as a balanced investment option with promising growth potential. The Best Western Studio Condos in Belize are cited as a prime example of a mid-range product that caters to mainstream travelers, offering consistent cash flow and practical investment opportunities.
The episode also explores the robust healthcare and educational systems that make Central America an attractive destination for families and remote workers. The hosts share personal experiences of accessing seamless and efficient medical care in the region, noting the ease and affordability compared to other regions. They also discuss the various schooling options available, including international, bilingual, and homeschooling, which provide flexibility and quality education for expatriate families.
A deep dive into the transcript of the ‘Global Real Estate Investing and Perception’ chapter reveals the intricate details of how perception influences property values. The hosts discuss a survey by the Zogby company, which found that only 11.6% of US citizens had seriously considered owning property overseas. This highlights the significant perception gap that exists even among well-traveled Americans. They use the example of property prices on either side of the Costa Rica-Nicaragua border to illustrate how perception drives price differences, despite similar crime statistics and other factors.
The ‘Investment Strategies in Central America’ chapter provides a nuanced comparison of acquiring assets in popular versus less popular locations. The hosts use simple numerical examples to explain how lower acquisition costs in less popular areas like Nicaragua can lead to higher long-term returns, provided the investor is patient and willing to take on some risk. They also emphasize the potential of Belize, particularly Ambergris Caye, as a balanced investment option that offers both reasonable acquisition prices and promising growth potential.
Finally, the ‘Accessing Healthcare and Education Abroad’ chapter reassures potential investors and expatriates about the quality of life in Central America. The hosts discuss the ease of accessing medical care without bureaucratic hassles and at a fraction of the cost compared to other regions. They also explore educational opportunities, highlighting the flexibility and quality of schooling options available for expatriate families. This segment aims to alleviate concerns for tech-savvy parents working remotely, making the move to Central America less daunting and more feasible.
In summary, this episode of RealtyCast Global provides a comprehensive guide to maximizing property investments in Central America. By focusing on perception and knowledge, the hosts equip listeners with the tools needed to make informed decisions and capitalize on hidden opportunities in this vibrant region. Whether you’re contemplating a move or seeking to diversify your investment portfolio, this episode is a must-listen for anyone interested in Central American real estate.
For more information on living and investing in Belize, check out Michael’s Overseas Investment Guide (click here to download the guide).
For real estate agents looking to expand their business internationally, expose existing listings to a global pool of buyers, and connect with new clients, check out Global Property Pros.
For Property Buyers & Sellers seeking assistance in the international market, check out RealtyHive’s property marketing solutions.
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About the Guest – Michael Cobb:
At the height of a successful career in the computer industry, Mr. Cobb left to pursue more pioneering opportunities in the emerging real estate markets of Central America. In 1996, he and his business partner formed a company, Exotic Caye International, to provide loans to North Americans purchasing properties in Belize, Honduras and throughout the region. As the need for capital outstripped the supply, the mortgage company was converted to an international bank under the jurisdiction of Belize. It continues to provide mortgage services but has expanded its services to encompass the full realm of financial products.
Mr. Cobb also saw the need for a regional real estate company that would serve the Baby Boomer consumer with a North American standard product for the next 2 decades. He led the group into real estate development and created a holding company for several properties including a resort on Ambergris Caye, Belize. In August of 2000, Exotic Caye purchased 3.5 miles of Pacific Beachfront property due west of Managua, Nicaragua.
This master planned community hosts world class infrastructure, homes and condominium units. In February of 2006, the ECI Development group acquired 1100 acres and 3km of coastline in Costa Rica, setting the stage for expansion into this popular market. Most recently they merged their Belize property with a much larger parcel and have begun to develop 200 condominiums units on Ambergris Caye, Belize.
Additionally, Mike Cobb has spoken at hundreds of international conferences about real estate financing and development. He has acted as a consultant to The Oxford Club and gives counsel to various real estate projects throughout Central America.
Website: ecidevelopment.com
Phone: +1.703.795.2555
Email: mcobb@ECIdevelopment.com
About the host – Hugh Gilliam:
Hugh Gilliam co-owned a national transportation company, created a land development business, and worked as a general contractor in residential and commercial construction for over two decades. Hugh also co-founded an international distribution company and successfully negotiated and contracted with 135 sales representatives in the United States, Canada, France, Brazil, Japan, and the Netherlands.
Today, Mr. Gilliam is affiliated with RealtyHive, LLC where he serves as Director of International Real Estate and President of Global Property Pros. His duties include involvement in commercial and residential transactions, plus promoting marketing systems and lead generation platforms.
He is also co-founder of the luxury digital magazine, DOORWAYS INTERNATIONAL, powered by RealtyHive, which serves as a platform for Brokers and Buyers throughout 70 countries.
Hugh’s Designations Include:
- Certified Luxury Home Marketing Specialist
- Certified Distressed Property Export
- Certified International Property Specialist
- Certified International Investment & Immigration Specialist
- Transnational Referral Certification
Hugh’s Memberships Include:
- Georgia Association of REALTORS
- National Association of REALTORS
- International Real Estate Federation (FIABCI-USA)
- Asian Real Estate Association of America