By: Steve McDonald
Purchasing a property overseas can be an exciting yet complex endeavor. Michael Cobb, author, and CEO of ECI Development, has dedicated over three decades to guiding individuals through the intricacies of international real estate. His book offers a detailed roadmap, providing advice to help avoid common pitfalls and make informed decisions when considering investments in property abroad.
Common Mistakes in Overseas Property Purchases
One of the most common mistakes buyers make, according to Cobb, is assuming that buying property overseas operates under the same rules and systems as it does in their home country. This assumption can sometimes lead to costly missteps. To address these challenges, Cobb’s book focuses on 30 essential questions that prospective buyers should ask before committing to an overseas property.
He categorizes his guidance into three main pillars:
Buy What You See
Overseas markets often lack the same level of strict enforcement of advertising laws that many buyers are accustomed to. Promises about future developments, such as amenities or infrastructure, may not always materialize. Cobb emphasizes the importance of purchasing only what is already completed and tangible, which can help buyers avoid being disappointed by unfulfilled promises.
Own Community
Building a community is a key factor in enjoying life abroad. Cobb advises buyers to look for areas where a community of like-minded people is already established. Being surrounded by peers, friends, and opportunities for connection helps create a sense of belonging that is often important for long-term happiness.
Know the Developer
Cobb likens buying property from a developer to entering a partnership. It’s a relationship that requires trust, due diligence, and time to establish. He recommends a thorough vetting process that combines objective research—such as working with lawyers and realtors—with a subjective evaluation of how the developer and community make the buyer feel.
Personal Favorites: Lifestyle vs. Investment
When asked about his favorite overseas property destination, Cobb draws a distinction between lifestyle and investment decisions. For lifestyle, his personal favorite is Nicaragua, a country he admires for its warm people, relaxed pace of life, and natural beauty. However, when it comes to investment, Cobb highlights Ambergris Caye in Belize as a promising opportunity.
Belize, particularly Ambergris Caye, is currently in a phase of development that may offer potential for both cash flow and appreciation. Cobb advises investors to focus on branded properties, which have seen increasing interest on the island. However, he notes that this window of opportunity may be time-sensitive, suggesting it could last only a couple more years before the focus potentially shifts to emerging markets like El Salvador.
Leadership in the Real Estate Industry
As CEO of ECI Development, Cobb has navigated the complexities of international real estate for over 31 years. His leadership approach has evolved to address cultural differences across countries while leveraging local strengths. For instance, ECI’s marketing and finance operations are based in Belize, where English is the official language, while engineering and operational work are managed in Nicaragua and Panama due to competitive labor costs.
Technology has also played a significant role in enabling ECI’s remote-first business model. Cobb reflects on the transformation from fax machines in the 1990s to today’s seamless communication via platforms like Teams and Zoom. This adaptability has allowed ECI to grow while maintaining a global presence.
Cobb identifies limited access to capital as one of the challenges faced in property development in Latin America. Unlike developed markets, where financing tends to be more accessible, middle-market projects in Latin America often encounter difficulties in securing funding. ECI has addressed this challenge by engaging North American investors and exploring creative financing solutions.
The Remote Work Revolution and the Future of International Real Estate
The global shift toward remote work is reshaping retirement planning and real estate investment. Cobb sees this trend as a “remote revolution” that has untethered workers from traditional office settings, allowing them to live and work from anywhere with adequate internet access.
This shift has increased interest in overseas living, with people opting to relocate before retirement to enjoy a better quality of life while continuing their careers remotely. Cobb compares this moment to past transformative eras like the industrial revolution, noting that those who act now may stand to benefit significantly from this emerging trend.
Michael Cobb’s insights underscore the importance of research, patience, and community when purchasing property overseas. Whether for lifestyle or investment, his advice empowers buyers to navigate the unique challenges of international real estate and capitalize on opportunities in this rapidly evolving market. By blending data-driven decisions with a personal touch, Cobb offers a valuable blueprint for success that benefits individuals and the industry as a whole.
Find your copy of How to Buy Your Home Overseas on Amazon.
Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.
Published by Tom W.