Uruguay Coastal Properties

I have a major consulting engagement that’s keeping me really busy. In addition, to being in the property rental business in the states and Uruguay, I’m also a business consultant. So if the articles seem a bit sparse for the next few weeks, don’t be concerned. I’ve got a full plate as we speak, so hang in there.

We have some good stuff on tap, economic observations/analysis, truly bizarre property sales stories, you name it.

Stay Tuned!

Steve

Chris and I in our courtyard, Piriapolis

A quick note to our readers. This week’s post will be short.

My wife Chris is having a minor surgery and a huge city tree feel over and demolished one of our cars. Savannah has massive, beautiful live oaks that are very protected by law. We’ve seen the downside.

Next week I’ll be back with a real estate or property related  article.

Thanks,

Steve

I’ve never brought up personal stuff on this site because I haven’t felt like it’s relevant, but recently, a number of people have asked about what I do here in the States.

We’re in the real estate business, residential property management in Savannah, GA, primarily for our own portfolio. Most of our rentals are long-term, although we do have a couple of short-term/vacation rentals. I also do some professional contract work for organizations in town.

I feel very lucky to add the rental business is strong in our niche; we’re even increasing rents a bit. So far, the real estate crisis has not affected our  strategy: positive current cash flow. Fortunately, we own mostly smaller units (studio & one bedroom) which are typically in high demand locally. We’re seeing the large rental units, three bedrooms plus, getting hammered; they’re vacant or fetching lower rents. As the growing glut of unsold houses and condos come on-line as rentals, the bleeding will get far worse in this sector.

There is one underlying reason we’re doing OK. I never bought into appreciation get rich quick frenzy. We purchased based current cash flow/return on investment, which guided us to well priced smaller units, with reasonable cash down payments. Don’t get me wrong. Our balance sheet has taken a hit like everyone else but that wasn’t the reason for owning the stuff in the first place.

In the long run, rental property is worth the rents. That’s it.

For what it’s worth, the bottom in the US market in nowhere in sight. There are shoes yet to drop that no one is even talking about. As we’ve been saying for nearly two years, look to international property markets for opportunity, diversification and perhaps even safety at some point. Someday, the US market will be a screaming deal and the prospect of making gobs of money will be off the scale. This day is well into the next decade.

Stay Tuned!

Steve Bowman

The international flavor of Saint Anthony’s hill, here in Piriapolis, just got a little stronger and better.

Candy, from the US, Lesley and Jean from South Africa and Dave from Canada are joining our eclectic neighborhood. Candy purchased perhaps the best view lot on the hill, Lesley and Jean bought a large plot lower on the hill near the old Hotel Suizo and Dave bought a flat next door to us.

From what we know, we now have neighbors in the hood from the Czech Republic, Germany, Canada, Argentina, South Africa, England, the US and of course Uruguay. We feel like this diverse group, which is growing steadily, will make for a really neat enclave in time.

Why are people attracted to this hill? The best views in the whole country. Plain and simple.

A warm welcome to Candy, Lesley & Jean and Dave!