If you’re looking to spend your money on real estate investments, it might be better to put your money into properties in other countries than the US. This is because you’re more likely to purchase more properties by doing this, hence, increasing your chance of getting your return on investment (ROI) faster.
One particular country that’s attractive for real estate investments is Bolivia. It has received a massive growth in the economy, and because of this, the population can now afford various properties. So purchasing and selling properties in this country might benefit you if you plan to make real estate investments this year.
One of the main reasons Bolivia is such a great country to invest properties in is that they have some of the most affordable estates in the world. Two-bedroom houses can cost around $50,000, and large homes with multiple rooms can cost about $100,000. These are considered to be the same-sized homes found in the US. Considering that the average price of homes in the US now costs more than $300,000, Bolivian homes are becoming a great investment option.
There are various reasons why Bolivia is becoming a great place to invest your money in. The first reason is the construction boom.
The Construction Boom
The country has experienced a construction boom during the last decade or so. Certain cities are becoming more affluent than ever because of various foreign investors, many of whom come from Switzerland and Germany. These investors are investing more money into the country’s infrastructure, making it a lot cheaper to build properties.
For example, the city of Santa Cruz had more than 60 construction projects in 2015. More than half of those construction projects are residential properties. The remaining projects are commercial and mixed. Many of these projects are now complete, making them ripe for investors and people looking for a home in the country.
More and more projects are being built in the country, and being one of the investors of these projects can certainly net you a decent return on investment in the future. Moreover, you shouldn’t worry about earning less than what you’ve invested because the country is expected to grow because of the recent lithium boom.
The Lithium Boom
Lithium has become one of the essential finite resources in the world. It’s found in various modern technologies such as batteries, cameras, and electric vehicles. Considering that significant countries globally, such as the US, are substantially shifting towards electric vehicles, lithium is becoming a more essential resource than ever.
Bolivia has the world’s largest lithium reserves, amounting to over 21 million tons of brine lithium, most of which are found in Salar de Uyuni salt flat. It holds billions of dollars in revenue, and many are profiting from this boom, especially inside the country. The lithium boom is forcing many significant players to move into the country, and as more companies do this strategic relocation, the more the country can benefit from it.
This also means more employees looking to rent a place to stay within Bolivia. Hotels, restaurants, and other parts of the hospitality sector can undoubtedly benefit from this as foreign businessmen and employees are more stable customers than tourists. In addition, various people who invest in Airbnb can also benefit from this surge.
As more companies take an interest in the country’s lithium reserves, the more Bolivia can benefit from it, and the more the country can benefit from it, the more its people can grow.
A Growing Population
There is now a growing population in Bolivia earning more than ever. Many parts of this ever-increasing population are currently looking for a house and lot for sale in the country. There are even more who are looking for a place to rent. Considering that rent inside the country is some of the cheapest globally, costing about $150 per month, this particular market is looking suitable for its inhabitants.
A growing population is always a good sign for investors genuine estate investors. This means that country has a population that can sustain payments. Additionally, more people are willing to sell and purchase homes in the market. Banks and lending companies are also likely to move into the country, which is good for the real estate industry.
However, as an investor, you should be smart with your choices. For example, if you’re someone who has enough money to purchase a home in the US, it might be wiser to invest that money into Bolivian properties instead. One house in the US can cost two to three properties in Bolivia. That’s a huge investment, and having that many properties can certainly give your ROI back in no time.
If you’re planning to invest in these properties, it might also be better to flip them and sell them instead of putting them up for rent. As stated earlier, rent within the country is fairly cheap, so it’s better to sell these properties if you want your ROI back in no time.
Bolivia is looking good when it comes to real estate investments. So if you’re looking to make some investments this year, this country should be on your list.