$30,000 Houses in Montevideo's Old City

Read more about Uruguay in International Living Postcards—your daily escape

Dear International Living Reader,

There’s a lot to draw you to Ciudad Vieja, the historic center of Montevideo, Uruguay.

Tango clubs, where the singing and dancing goes on until sunrise, will compete for your attention with the symphony performing at the national theater. An open-air artisan market will hope to draw you from the high-end boutiques and art galleries, while tiny cafés—where old men sip cappuccino and argue world events—will be thriving a block from city’s best fine dining. The choices are many, varied, and wonderful.

Long-time readers will remember when we first started talking about Ciudad Vieja back in 2004, identifying the great potential in Uruguay’s capital city. Now, in 2008, the mainstream investor is catching on, and the opportunities are expanding dramatically. And not just for big-time investors, but for anyone who has more than $30,000 to work with.

Leading the pack of buyers are the Spanish, who are staging a virtual invasion. At this time, 50% of the total sales in Ciudad Vieja are to Spanish buyers, according to Isodoro Kosak, a real estate investor and owner of one of the city’s largest real estate companies.

What’s bringing them to Montevideo? The most important motivator is probably the declining real estate market in Spain, which is now forecast to last through 2010 according to a recent newspaper article in El País. Spanish investors are looking for a quality market in which to invest their capital. And they’re picking Montevideo because of its good geographic location and seaport, solid legal system, stable government and predictable “rules of the game.” And, of course, they’re also attracted by the huge inventory of restorable buildings in Ciudad Vieja, as well as the good city services and infrastructure.

But doesn’t this all sound familiar? Aren’t those the qualities we’re all looking for when we buy real estate? In fact, we’ve got a lot in common with the Spanish right now, given the declining real estate market in the U.S.

The name of the game in Ciudad Vieja right now is restoration projects. And the reason it’s a good time to invest is because the entry prices is low…but the cost of the finished product (after refurbishment) has risen substantially. The Spanish are buying primarily to sell into the luxury hotel market or the increasing demand for premium office space…but I personally prefer the opportunities found in restoring homes, condos, and small commercial spaces. Not because it’s a better investment necessarily, but because it suits my personal preference and budget.

So whether you prefer opera or tango…the tiny café or the fine restaurant, you’ll find what you’re looking for in Ciudad Vieja. And it’s the same with properties. Whether you’d like to restore a grand, old hotel or fix up a small house to escape to during the North American winter, Ciudad Vieja will have something to offer you.

- Uruguay’s “Hidden Assets” Revealed
- Rescue an Old Colonial in the Most Historic Part of Montevideo
- Uruguay: Capital Living for $69,000

Author: Lee Harrison

fuente: InternationalLiving.com