FRANCE VS. GUATEMALA: TRIO OF REAL-ESTATE OPPORTUNITIES

FRANCE VS. GUATEMALA: TRIO OF REAL-ESTATE OPPORTUNITIES

I’m really interested in a piece of land in beautiful Guatemala. While Mo’ Money Mo’ Houses was thinking about buying property in the US, I was pondering where to invest the money I expect to receive in a couple of months. The sale becomes final on Friday, so I haven’t made any offers yet, but my plans have shifted significantly.

Europe is incredibly expensive. I don’t have a steady income and I’m not willing to take on a million dollars of debt for a small two-bedroom flat in Paris. I have around $100,000 from my upcoming sale and savings to invest in real estate.

My Options in France Were:

Option 1: The southeast, near the mountains of Provence. With $100K, I could buy a 900 square foot house that needs a lot of repairs, including structural work like the roof and insulation. If I’m lucky, the property might have a small terrace or balcony, but definitely no garden.

Pros: Many friends and my godmother live nearby, and the fast train to Paris takes three hours. The beach is only an hour away, and Provence attracts many tourists, so I could rent out a room or two in the summer.

Cons: The house would be small and in poor condition, meaning I’d live amid repairs for about three years. These old medieval houses often have impractical layouts with split levels. Essentially, you’re paying a premium for the location.

Option 2: South-West France, between the Mediterranean and the Atlantic, near the Pyrenees mountains. With $100K, I could buy a 2000 square foot house on a decent-sized piece of land that you could call a garden, not just a patio. For instance, a big house from 1762 with a garden and a brand-new roof, covering nearly 5000 square feet.

Pros: Lots of space. I could convert the house into six apartments and rent some out short-term and others long-term. The region is beautiful, with skiing two hours away and amazing food. Lower prices mean I’d still have some money left to renovate my living area for decent housing while I tackle other renovations.

Cons: This part of France is very remote and rural, populated mostly by older people. Young folks go to college and only come back occasionally. Socializing, dating, and making friends would be challenging. Paris is 7-8 hours away with multiple train changes, making it more complicated.

Option 3: A small piece of land by Lake Petén Itzá in Guatemala. I love this country and have already lived there for four years. The land is about 21,500 square feet with 35 meters of private beach, costing only $30,000, so there’s plenty of money left to build a lovely house. I could also consider buying a big ranch across the street for $70K, getting over 90 acres. This ranch is near a village, and I could potentially divide part of it into small plots for future expansion, offsetting some buying costs.

Pros: Private beach! In Europe, a property like this would cost at least half a million dollars. It has a basic little house to live in while I build my dream home. The lake is warm year-round with crystal-clear waters, and there are plenty of tourist activities if I want to start a small guesthouse. Nearby are the UNESCO World Heritage site of Tikal and other Mayan ruins, along with the Flores international airport just a 15-minute boat ride away. Imagine landing and relaxing on my beach within minutes!

Practically speaking, I know Guatemala well, having lived there for four years. I speak the language fluently, have many friends who could help in case of problems, and understand how to navigate their slow administration.

Cons: Guatemala is far from Europe. When I lived there, I used to visit every eight months or so, with tickets typically costing around $1,000. I wouldn’t see my family as often, especially my two-year-old niece who doesn’t use Skype or email like my mom or close friends. Although some parts of the country can be dangerous, this area is not particularly so.

So… The Winner Is…

Guatemala seems to be the best choice. The extra transportation costs are balanced out by the year-round fantastic weather, the lakeside property, and the considerably lower cost of land and future house.

I’m waiting until Friday to make a formal offer when I’m sure to get my flat money. Fingers crossed!

Have you ever considered buying property abroad?