If you have enough money to buy a vacation home, but can’t seem to outbid the competition in the U.S., there is an alternative: look just outside the U.S.
Last year, that’s what a growing number of remote workers did, searching real estate markets across the North and South American continents. Amid the pandemic and expanding opportunities to work remotely, housebound homeowners looking to relocate have had the opportunity to expand their searches to places like Canada, Mexico and Costa Rica.
To find out where people were searching the Americas for a second home the past 12 months, point2homes.com, an online real estate marketplace headquartered in Saskatoon, Canada, analyzed user searches on its platform by using Ahrefs, a search engine optimization (SEO) software suite. The Ahrefs extracted keywords related to real estate in combination with all of the countries and territories from the Americas to determine the average number of searches per month for each. Point2 then ranked these locations based on the total number of searches for them during the past year.
Here, in ascending order, are the American nations that have attracted the most interest from U.S. home buyers:
15. Bermuda
This British island territory is reknowned for its pink-sand beaches and eclectic mix of U.K. and U.S. culture. Two years ago, Bermuda cut its red tape restricting sale of local real estate to primarily high-net-worth overseas buyers, making it more affordable for all. Total number of 12-month searches: 3,870.
14. Cayman Islands
With no restrictions on foreign ownership, a strong rental market, a stable economy and no property taxes, income tax, inheritance tax, or capital gains tax in the Cayman Islands, buyers on the hunt for a second home in this autonomous British Overseas Territory stand to reap big rewards on their investment. Total number of 12-month searches: 4,850.
13. Colombia
Once a haven for drug lords, Colombia these days attracts more expat snowbirds in search of a second home than felons fleeing the law. But if you find your home-away-from-home here, bring cash and a bilingual attorney to the closing because mortgages are hard to find and legal snafus expensive to untangle. Total number of 12-month searches: 5,010.
12. Jamaica
Spend the day snorkling in Jamaica’s Negril Bay, then party the night away in this island nation’s popular hot spot, Montegeo Bay. But if you intend to do it as a part-time expat, expect to pay high fees in addition to the purchase price of your second home. Total number of 12-month searches: 6,260.
11. Ecuador
Ecuador’s low cost of living and access to affordable healthcare make it a popular destination for second home buyers and retirees, but mortgages are hard to get and rates are high, so bring cash and an attorney to your closing. Total number of 12-month searches: 7,790.
10. Honduras
If you meet this Central American nation’s requirements for foreigners buying real estate in its coastal areas, Bay Islands, or near its international borders, you’ll be living the life of Riley before you know it. Total number of 12-month searches: 11,230.
9. Dominican Republic
Just a two-hour flight from Miami and four hours from New York City, the Dominican Republic shares the island of Hispanola with Haiti. Whether you’re looking for a destination investment property or future retirement home, housing prices in this scenic jewel can't be beat. Total number of 12-month searches: 11,700.
8. The Bahamas
Located east of Florida, the Bahamas are just a hop, skip and a jump away, so why not buy a second home there? If you do, you won’t have to worry about paying a personal income tax, capital gains tax, inheritance tax or corporate tax, but you will have to pay a value added tax (VAT), as well as property taxes on your real estate investment. Total number of 12-month searches: 14,890.
7. Panama
Linking Central and South America, Panama offers expats the best of all worlds, as well as an affordable housing market where highly desirable properties that sell for a third to half of what they would cost stateside. The downside to buying a second home in Panama is that the more money you pay for your investment, the higher your property taxes will be. Total number of 12-month searches: 15,360.
6. U.S. Virgin Islands
U.S. citizens don’t need a passport to visit the USVI, so why not buy a second home in this American territory in the Caribbean? Homebuyers will find a range of luxurious residential properties for sale at competitive prices, and can realize significant tax advantages if they open a business there, too. Total number of 12-month searches: 16,950.
5. Belize
Savvy real estate investors are flocking to this English-speaking Central American nation to invest in its red-hot housing market, and so should you. Property taxes in Belize are low, you can rent out your investment property and deduct the repair and maintenance costs, and offshore accounts are legal in this tax haven. Total number of 12-month searches: 25,610.
4. Puerto Rico
There are countless reasons for investors to buy a second home in this unincorporated U.S. territory in the Caribbean, but the only one that matters is its lucrative tax incentives, which include a 100% capital gains tax exemption on interest, dividends, long- and short-term capital gains, and cryptocurrency. Total number of 12-month searches: 35,840.
3. Costa Rica
There are plenty of non-stop flights from major U.S. airports to Costa Rica. If you find you’re not visiting your investment property as often as you thought you would, take advantage of the red-hot rental market by renting it out as a vacation home. Total number of 12-month searches: 46,610.
2. Canada
Looking for a second home abroad where most of the natives speak English? Go north to Canada. But if you plan to live in your investment property more than six months out of the year, you’ll have to file an annual tax return with the Canada Revenue Agency (CRA), as well as Uncle Sam. Total number of 12-month searches: 64,440.
1. Mexico
If you’ve been shut out of the white-hot U.S. housing market by losing bidding war after bidding war for the home of your dreams, Mexico could be an option. The nation offers a lower cost of living and lower annual property taxes than the U.S. Total number of 12-month searches: 82,850.
The full report can be viewed here.