Punta del Diablo, Uruguay – Fun and Profit in the Southern Hemisphere

Punta del Diablo is a Uruguayan fishing village located 43 kilometers from the Uruguay/Brazil border. It has good surf and a rustic beauty that is said to arouse one’s primal spirit. This magic environment combined with a little imagination (or a little alcohol) enables one to discover his or her inner Bohemian. As a result, Punta del Diablo has grown into a summer beach vacation Mecca, which subsequently provides a rosy real estate opportunity at a time when international diversification makes more sense than ever.

One of the best things going for Punta del Diablo is that it is in Uruguay. Foreigners are able to buy and sell Uruguay real estate without any residency requirements or government approvals. Uruguay is also one of the few countries still experiencing some economic growth. On Monday, June 13th, 2009, Fitch Ratings revised Uruguay’s credit ratings from “stable” to “positive”, citing Uruguay’s economic resilience to the global financial crisis.

Punta del Diablo vacation rentals stood out in 2008 for producing one of the region’s best returns on investment. A local property manager reported that last year well marketed and managed vacation rentals brought an average return of 10%. Undeveloped beach lots have also made impressive gains, with many doubling in value over the last two years.

A continuation of increasing property values is supported by a trend of gentrification that seems to be firmly in motion. Punta del Diablo vacation rentals have traditionally been small inexpensive cabins arranged in tight clusters. However, now, to the west of the village, there are a growing number of roomy architect designed beach homes being constructed for a more affluent crowd that is joining the Punta del Diablo pilgrimage.

Buying and holding a Punta del Diablo beach lot is a simple and low maintenance way for many foreign investors to add a promising international element to their portfolio. Most beach lots are a little over 500 square meters. At this writing (July 2009) lots within five blocks from the beach have prices that start at just under 25,000 US dollars and go up to over 60,000 US dollars.

However, perhaps you are looking for more than just a simple and low maintenance way to invest in offshore real estate. Perhaps you are ready for a change - and spending part of the year managing and marketing your own vacation rentals on one of the hippest beaches in the southern hemisphere is just the opportunity you have been looking for.

By David Hammond

David Hammond is the author of the eBook Buying Real Estate in Uruguay available to purchase and download now.

You can contact David on David@ParadiseUruguay.com
Or visit his website: http://www.paradiseuruguay.com/

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