I got quoted in this Fox Business News story about buying real estate abroad, so of course we think it’s worthy of a read. Called What you need to know before buying foreign property, it’s specifically about whether it’s worthwhile to go on a real estate tour that gives you a crash course in the local market.

I can’t say I’ve ever been on one of those tours, but I’ve talked with a few people who have and were happy that they did it. The biggest obstacle for most people in buying real estate in Latin America is figuring out the landscape: what’s the real value, what are the laws, how does the process work? If you rent somewhere for six months or a year, you’ve got time to figure all that out. If you’re trying to buy more quickly, however, you can make some major blunders if you don’t get good expert advice. Most markets don’t have an MLS and all you have to do to be a real estate agent is print up business cards saying you are—no license required.

I prefer the tours run by the likes of International Living and Pathfinder over the ones focused on a specific development. Sure, there are lots of discounts built in because the sponsors are hoping you’ll buy something, but there’s not the kind of pressure you get from a single developer who is incurring costs to have you there. There are lectures and Q&A sessions from agents and legal experts, plus you get to see a range of properties to get a decent feel for the market. As always, ask independent questions on your own and do your own research in addition, but you’ll leave one of these real estate tours with far more knowledge than you had going in.

See the full article here.

See more stories about real estate in Latin America.

In Mexico’s central highlands, picture-perfect San Miguel de Allende has become gringo central for retirees. Tens of thousands of Norte Americanos make this their home at least part of the year. This includes more than a few millionaires who have diversified part of their fortune in a place where the weather is fine all year and excellent health care is affordable.

Being that this real estate market is so tied to what’s happening in the U.S., however, naturally things took a dive when the real estate bubble burst in the land where most of that investment was coming from. Fewer buyers started showing up awash in cash and those who had bought in Mexico with home equity money from a house back home found it tougher to unload their $million+ Mexican showpiece.

Things are starting to pick back up again as the U.S. stock market rises again and the recession is winding down. Does that make this the perfect time to buy? If you are in it for the long haul, yes. The agents I talked to and saw houses with said while prices are not ticking up yet, they seem to have hit a bottom. That bottom is 20-40% from the peak three years ago, so you may not be able to expect a quick flip, but you should have solid appreciation over time.

For what you can expect to get for your money in this popular city, see our new real estate article, San Miguel de Allende for Millionaires.

We feature three kinds of travel reviews on Luxury Latin America: the best luxury hotels, interesting luxury travel tours, and Latin American real estate that appeals to foreigners buying a vacation home or retirement home in Mexico, Central America, or South America. In the latter category is a piece we put up a couple weeks ago: Real Estate in Punta Mita.

Punta Mita goes by two slightly different names, so it’s a little confusing. Punta de Mita (which sort of translates to “arrowhead”) is the peninsula region in general, located between Puerto Vallarta and Sayulita in the Riviera Nayarit region. Punta Mita without the “de” is the private development within that region. It’s anchored by the Four Seasons, a St. Regis resort, and two golf courses designed by Jack Nicklaus. Plus there are plenty of different real estate developments for those who like it so much they don’t want to leave.

That feeling is understandable as this is one of the prettiest and most dramatic coastal locations in Mexico, plus the golf experience here wins plenty of “best of” accolades on a regular basis. Don’t come to this area looking for a bargain though—one software mogul has built a house here that supposedly cost $36 million, give or take a few mil—so you’ll be in the company of people who can afford to buy exactly what they want. Except for a few condos and townhouses, prices are listed in seven digits.

This is perhaps the most prestigious resort living address in Mexico. See the full story here:

Luxury Real Estate in Punta Mita, Mexico

We’ve added two new and notable hotels to our reviews of luxury hotels in Uruguay, both run by the same company. Estacia Vik and Playa Vik are welcome additions to the beautiful coastal region of Uruguay, up the road from Punta del Este in José Ignacio.

This part of the coast is less crowded and you certainly won’t feel hemmed-in at Estancia Vik, which opened in 2009. The ranch hotel sits on 4,000 acres and you can ride horses, hike the hills, go canoeing, or catch a ride to the beach a few minutes away. There are only 12 guest rooms here, all decorated by a noted local artist, and the cuisine—with many ingredients coming from the working farm—is getting high marks. Read the full review of Estacia Vik.

Sister property Playa Vik opened this year and is even more dramatic, with bold lines and art work from the likes of Zaha Hadid and James Turrell. Once again, you won’t have to fight for a deck chair beside the infinity pool.

“The property’s six casas are divided into several sizes, ranging from two to three bedrooms in size. Each casa is distinct in layout and design, but the décor is consistently contemporary, and they all have a fireplace, original artwork and hand-painted floors.”

Read the full review of Playa Vik in Uruguay.

The plummeting euro has been all over the news the past few months. In a strange twist of fate, the non-Chavez-leaning countries of Latin America are looking like models of fiscal stability now compared to their colonial cousins in Spain and Portugal.

The euro is at its lowest level in five years against the greenback as the flight to safety continues. So what does that mean for your travels to Latin America?

Not much, actually. As I’ve pointed out on here before, many of the currencies in Central America and South America move in lockstep with the U.S. dollar. In Ecuador and Panama, the dollar is the currency—you don’t even need to change money upon arrival. In others, like Honduras and Belize, there is a very narrow trading range.

The most volatile exchange rates are the ones attached to the most developed roaring economies: Chile and Brazil. Expect a lot of volatility if you’re heading to those commodity-rich nations. Things are a little brighter right now though: the dollar is up 6% in Brazil and 7.1% in Chile since the new year started.

The bad news is, that’s coming off a very strong 2009 for those currencies. The news is worse elsewhere, with the dollar faltering a bit against the currencies of Colombia, Guatemala, Peru, Uruguay, and Costa Rica. Not by much though—the declines are all under 5%.

Mexico is basically flat for the year, which means around 12.5 to the dollar—still a great exchange rate in historic terms. Argentina is still hovering around 3.9 to the dollar, after being at 3-to-1 before last year. (Unfortunately, they’re making up for it with high inflation and increased visa fees upon arrival.)

Does any of this matter if the changes aren’t dramatic? Not a whole lot for your biggest expenses. If you book a tour with a company marketing to North Americans, they’re pricing things in dollars anyway. Most luxury hotels set their rates in dollars as well in this hemisphere, with Brazil being the main exception. Latin America real estate may or may not be priced in the local currency: it depends on the target market and the location.

Where you really lose or win is when you buy things or services that are priced in local terms. When the dollar is strong, you will pay less for taxis, restaurant meals outside the hotel, and excursions you book with a local company not affiliated with your hotel. Local flights will usually be in the local currency, except for places like Peru and Argentina where they like to play the game called “soak the foreigners.”

Naturally if you’re living somewhere for a while in a vacation home or retirement home, these fluctuations matter more. They then affect your property expenses and labor expenses.

To see historic exchange rates, follow this link to fxtop.com