[Editor’s note: Sovereign Man’s resident Chilean property guru, Darren Kaiser, is filling in for Simon today.]
As a property investor and speculator, I’m always studying trends and looking for anomalies. Learning about the history of a place, how it came to be as it is today, and then making predictions about what it will be like in the future is something I do both for leisure and for profit.
It’s definitely not an exact science, but when you find enough indicators (that still haven’t drawn much attention for the public at large) pointing in one direction, you realize the odds are significantly stacked in your favor and that it’s time to buy.
As Jim Rogers has said, the true investor hates to gamble with his/her money. Instead, they look for situations where an investment is such a screaming deal that it’s almost like walking over and picking up a pile of money.
It sounds great, the only problem is that these kinds of situations don’t come along every day, and when they finally do present themselves, they’re not always so easy to recognize.
Over the last few years here in Chile, I’ve come across things like this a couple of times (which is way more often than I normally encounter these on my travels) and just recently, I was fortunate enough to stumble upon another.
I can’t give away the location of this exact spot just yet but I will say it’s probably one of the most obvious no-brainer investments I’ve ever come across. The place looks just like the central coast of California, only 1.25 acres of beachfront property here sells for about $20,000 USD, not $2,000,000 USD.
Parts of the central Chilean coastline have just started to become popular in the last year or two but not this place. Most of my local friends from the city have never heard of it, which is just the way I like it. A place that’s not even on the map yet where you can still find rock bottom prices.
Not all coastal land in Chile is a deal. Actually, a lot of places have gotten quite expensive already and land just 45 minutes away from this beach sells for over twice as much as property in this particular area.
After nearly 3 years of exploring the central coast, scouting the back roads, getting to know locals, and constantly comparing property prices, this place really stands out.
This weekend at Simon’s event, I’ll be speaking about other striking anomalies that I’ve come across during my time in Chile as well as sharing more about ways to gain exposure to these kinds of places in the coming weeks in this letter.