The most underutilized city in South America - Punta del Este
I just spent the past 48 hours in Punta del Este, Uruguay. Most people have never even heard of it and couldn’t tell you where it is on a map. Punta del Este is located on the Atlantic Ocean only 30 minutes by plane from Buenos Aires. I flew to Punta del Este to explore investment opportunities for myself and my clients. I am often asked about Punta del Este but I have never been there so I couldn’t intelligently answer any questions about it.
I expected a small little resort town. I was really impressed with Punta del Este. In fact, I firmly believe it may be one of the most underutilized cities in South America. I have spent the past 3 years traveling all around the world. I have been to most countries in South America, Cuba, Mexico, Canada, the Caribbean and throughout Europe.
The amount of wealth in Punta del Este is unbelievable. The majority of properties in PDE are owned by wealthy Argentineans that purchased properties here with “black money” many years ago. I traveled extensively around the city and saw several properties in various price ranges. It was amazing to see almost all of the properties empty at this time of year. Something that was amazing to see is that Punta del Este is currently only used about 2 months out of the year. January and February are the only months that are really utilized. Property owners are charging tremendous rates for rental mainly in January and also in February.
At night it was amazing to look at all the buildings with only 1 or 2 lights on. The quality of the properties were amazing. I have visited very few places in the world with as high a concentration of luxurious properties throughout the city. The apartments I visited were first class properties with amazing views. Property owners are making about 5% to 6% returns on their investment renting just January and February. I truly believe that Punta del Este can market themselves and attract tourists throughout most of the year. The city is immaculate. There is no trash in the streets. Crime appears to be almost non-existent.
The beaches were nice but the major asset of PDE isn’t the beaches. There are certainly better quality beaches in other parts of the world. Punta del Este is about a certain quality of lifestyle. It’s an upscale environment and wealth is evident throughout the city. Besides the high season of January and February, there doesn’t seem to be a lot to do here. But there are other places in South America to go to stay busy. PDE is a relaxing place you come to with your significant other. It’s a very romantic place that has all the characteristics of becoming a tremendous growth area. I believe that tourism will explode here within the next 5 years. More and more people are finding out about it. 70% of the properties are owned by Argentineans but I firmly believe that more and more foreigners will be buying property here in the next few years.
There isn’t much action in town during the off season. One night I was invited to go to a fashion show at the Conrad (owned by Hilton) which is the biggest hotel in town. It is a 300 room hotel with a casino attached. Very nice property. I guess there is a fashion show every Saturday night. The owner of the fashion show was a personal friend of the gentleman that hosted my trip to Punta del Este. Some of the models were hot.
More Americans and Europeans are finding out about this upscale environment and purchasing here. I saw several lots for sale in La Barra, a popular and trendy area and almost bought a lot of land to build on. There is tremendous growth in this area and there were tons of shops, stores and restaurants being constructed.
My favorite spot was a place I visited called Marina del Este. It was an amazing Mediterranean villa type area with about 60 homes and apartments in a closed community. The views were amazing. It was almost like being in the Mediterranean or the French Riviera. If money were no object, I’d buy one of the places here and live here a few months out of the year when I wasn’t in Buenos Aires.
I see tremendous potential in the real estate market here and I will attempt to do the same thing I am doing in Buenos Aires here in PDE. I posted just last week about taking the same principle of what I’m doing in Buenos Aires and making it work in other parts of the world. Many people emailed or posted that it’s almost impossible to succeed without spending significant time in the area. I disagreed believing that following a sound business plan it IS possible to achieve results and make money. We will see if I’m correct. This was my first visit to the city. I spent a little over 48 hours in the city and I believe I can take the same principles of how I created my business in Buenos Aires and make it a success here in Punta del Este.
I gave some ideas to the gentleman that hosted me and he was amazed at some of my ideas. I plan on partnering with him in a real estate venture in Punta del Este as a 50/50 partner. I want to revolutionize the real estate market here and bring globalization to this industry. I know it won’t be easy but few things important in life are. In the future look for puntaDE.com puntarealestate.com or apartmentspde.com.
Some of you might not think this has anything to do with living in Buenos Aires but what I want to show is that you too can move to a foreign country and start a business with hard work. I basically moved to a foreign country and started a business that generates income within 3 months of moving here. I’m now making more money per month than what I’m spending. Sure it’s peanuts compared to what I was making when I worked in the USA, but it’s a start.
I heard there was no hobby scene in PDE. I didn't even have time to look as I was busy the ENTIRE time I was there. I had several business meetings and was busy the entire time, even in the evenings. I seriously doubt there is any kind of hobby scene here. Just not the environment for it. I did see some hotties. One girl working in a furniture store was hot. I flirted with her and got her phone number.
You must have a car here or rent a car. The city is so spread out. Those that just come here for the summer to play probably don't have a chance to see the entire city like I did. It's an amazing place filled with great properties. Very laid back place. I think it is very romantic and the perfect place to fly with a novia. I hope to buy a property in the future here. The flight is very easy and the flight was from Aeroparque so it was very easy. Flight time is only around 40 minutes and relatively cheap at $150 US with taxes. There are cheaper flights but I bought relatively at the last minute.
I highly recommend going if you're looking at a spot to take a girlfriend with but save your hobby money because I seriously doubt there is a P2P scene here.
