Can you spot the $9 million difference between these two properties?

February 10, 2015
Puerto Varas, Chile

I’ve been having to keep consciously reminding myself where I am.

The well-paved roads twist and turn along the lake’s shores, and beautiful snowcapped mountains tower above in the distance. And I keep seeing signs in German.

It really feels like being in Switzerland again.

Yet I am almost as far away from the Alps as possible. I’ve been spending the last several days about 1,000 kilometers south of Santiago in Chile’s Lakes Region.

The scenery is pristinely alpine: numerous lakes, rivers, valleys, and mountain peaks covered with snow. It’s insanely beautiful.

Like Switzerland, all sorts of outdoor and adventure activities are in abundance here—hiking, climbing, mountain biking, kayaking, canyoning, fishing, hot springs, etc.

Even the culture feels very European. In fact, this area was a major center of German immigration more than a century ago, and many locals still grow up speaking German as their first language.

I try to come here every year, and as a rule (or somewhat of an obsession) I tend to look at real estate everywhere I go in the world.

Personally I find property here an incredible bargain, especially when you make international comparisons.

A Swiss villa with a view of Lake Lugano, for example, will set you back several million euros at least; you’re looking at upwards of 500 euros per square foot of construction along with a very small lot.

In North America, the closest comparable I can think of is Lake Tahoe—clean, pristine lake and mountain views with a gorgeous alpine setting. And, like Lugano and Puerto Varas, it’s a big tourist destination.

Looking at some recent listings, I saw one 4,600 square foot lakefront Tahoe property on a half-acre plot with an asking price of about $9.5 million. Others had asking prices between $5 million and $34 million.

Down here in Chile, property is slightly less expensive.

One lakefront home I’m looking at boasts over 6,000 square feet of luxury-quality construction, plus its own private beach, dock, tennis courts, and more than four acres of land.

The asking price is under $1.4 million.

Chile-Lake-property

If that’s too much, another lakefront home nearby has over 4,500 square feet of living space, again with tennis courts and its own gym. Asking price is just over $1 million.

One of my favorites is just up from the lake; it has nearly 20 acres of land and over 4,000 square feet of luxury. Asking price? About $875,000.

Chile-luxury-property

And still, if that’s too much, another of my top picks is a 5,000 square foot modern home with panoramic windows showcasing impeccable views of the mountains and lake, and over 5 acres to go with it.

Asking price? Just $570,000.

Chile-Mountain-Property

If I compare this property to the $9.5 million property at Lake Tahoe I mentioned, I am hard-pressed to find a $9 million difference.

I envisage this whole region will eventually become hugely popular for either permanent relocation or as a second home.

We’ve seen it before places like Boquete in western Panama, where some ten years ago there were hardly any foreigners.

Now the town is dominated by predominantly North American expats. And property prices have soared.

Having said that, my point is not to convince you to rush down to Chile and buy a lakefront home.

(Although when done properly, buying foreign real estate is a GREAT way to move money abroad and enjoy additional benefits.)

The point is that the world is a big place. You aren’t stuck anywhere. If you don’t like where you are, or if you don’t like the direction that things are going, there are options. There are ALWAYS options.

Many people seems to think that life outside of their home country is nasty and brutish… as if every other nation is some impoverished third world nation.

That’s flawed thinking.

There are plenty of safe, clean, vibrant, beautiful places to be where you can live EXACTLY the life that you want. You can feel free, prosper, and sacrifice nothing.

Most people would be surprised to realize that moving overseas can actually improve their financial situation.

It’s 2015. You can make money anywhere now. Most people don’t have to sit in one place in order to earn a living, or be co-located with customers or co-workers.

Even if you do from time to time, the tax savings alone from being an expat would easily fund 10-12 trips back to your home country each year.

To boot, you could see a substantial decrease in your living expenses, and a substantial increase in your standard of living.

It’s all possible. Just remember, there are always options.

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