How to Avoid Buying the “Wrong” Retirement Property

The fellow had purchased a retirement property in a certain Central American country on the basis of an ad alone. We were brought into the conversation to help with the planning.

The pictures were beautiful. The price was right too.

But there was one problem that he only discovered when he finally visited; something that’s hard to capture in numbers.

It was too gosh darn hot!

With humidity near 100% and daily temperatures above 85 degrees, this client from the East Coast just couldn’t handle it.

I can personally relate – I’ll take a barren tundra (suitably clothed of course) over a tropical rainforest any day of the week.

That experience is one of the reasons we recommend clients not buy retirement property without visiting first.

Over the years, we’ve helped many people relocate. And almost always, we recommend this simple process before they commit to a place.

It goes like this:

Trip #1: Stay in a hotel for a week and get to know the place as a tourist.

Trip #2: Rent an Airbnb for 4-6 weeks in a neighborhood that interests you and try to get a sense of what it’s like to be a local.

Trip #3 and Beyond: Similar to the goals of the second trip but done in another season and/or other neighborhood. This will give you a more well-balanced sense of a place.

With a process like this, we find it helps clients figure out what they like best about a place, what they don’t like and then be able to determine if the pros outweigh the cons.

And often, we find it’s the little things that drive someone nuts about a place. In one recent example, our clients complained the spot was too hilly (they have bad knees). In another, they didn’t like that public transportation was unreliable (been there). Or that they couldn’t find a good cup of coffee.

Assuming your trips go well, then it can make sense to get into the details, whether that be getting residency, purchasing a property, or what have you.

But don’t skip the trips. Doing so could be a pricey mistake.

Buying foreign real estate for investment, on the other hand, is a different game entirely. If you’re looking to do so and want a proven partner you can trust, feel free to reach out.