Geoarbitrage Real Estate Investing: How Living Abroad Can Supercharge Your Wealth

The Big Picture on Geoarbitage Real Estate Investing:

• • By earning in US dollars while living in lower-cost countries, investors can significantly reduce living expenses while maintaining or even growing their income. This strategy enables a higher quality of life at a fraction of the cost compared to the U.S.

  • International real estate markets, such as those in Brazil and Colombia, offer affordable investment opportunities with strong potential for returns. Investors benefit from lower purchase prices, reduced construction costs, and the ability to charge rental rates in US dollars, boosting profitability.

  • Investing in international real estate can provide more than just financial upside—it can also open doors to residency or citizenship programs, offering increased global mobility and a valuable “Plan B” for investors looking for long-term security and flexibility.

In today’s increasingly globalized world, real estate investors are discovering a powerful strategy to maximize wealth and enhance lifestyle — geoarbitrage real estate investing. This approach leverages the financial advantage of earning in US dollars while living in countries with significantly lower costs of living. 

By strategically choosing affordable destinations, investors can enjoy a higher quality of life at a fraction of the cost, all while maintaining or even growing their income streams.

An Introduction to Geoarbitage Real Estate Investing

I recently sat down with Tim Hubbard, international real estate investor and host of the Short-Term Rental Riches podcast, to dive into this concept. Tim, like myself, spends most of his year living in South America while continuing to earn US-based income. This blend of earning in a strong currency while living in a lower-cost country is known as currency arbitrage, and it can be a game changer for both personal finances and investment strategies.

The beauty of geoarbitrage is that it allows you to unlock luxury living at an affordable price. For example, my own family currently lives in a three-bedroom apartment overlooking the Pacific Ocean in Lima, Peru — a stunning view that would be unaffordable in most US coastal cities. 

Yet, thanks to the lower cost of living in Peru, our rent is only about $1,300 per month — a fraction of what a comparable property would cost in the United States. Even better, my wife’s employer covers our rent, making the financial upside even greater.

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Tim’s Geoarbitage Experience

Tim shared his own experiences investing across South America, particularly in Brazil and Colombia. In Brazil, he purchased a condo near the ocean, investing around $200,000 for the purchase price and another $75,000 for renovations. 

The short-term rental market in Brazil’s popular tourist destinations allows him to generate excellent returns, especially during peak seasons when the population surges. Thanks to the strength of the US dollar against the Brazilian real, Tim effectively bought the property at a discount, allowing him to stretch his investment capital further.

In Colombia, Tim is developing a small resort property situated on over two acres of land. This project benefits from the same currency advantage — construction costs in Colombian pesos are far lower when converted from US dollars. 

Combined with the growing tourism market, this creates a highly profitable opportunity to earn rental income while benefiting from the lower cost of entry. And because his target guests are often international travelers, Tim can charge rates in US dollars, further enhancing his profitability.

The Challenges of Geoarbitage

While investing internationally offers tremendous upside, it does come with challenges. Navigating local regulations, legal processes, and cultural differences can be complex, especially if you don’t speak the language fluently. 

Tim emphasized the importance of having a trusted local team — including legal advisors, contractors, and property managers — to ensure smooth operations and compliance with local laws.

Beyond financial benefits, international real estate investing can also open doors to residency and even citizenship by investment programs. Many countries offer long-term residency visas to foreign investors who purchase property or invest in local businesses. This added benefit provides not only lifestyle flexibility but also a valuable Plan B for those seeking increased global mobility and security.

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Join Our Co-Investing Club For Hassle-Free Real Estate Investing

Want to enjoy the potential of passive real estate without having to buy real estate? Invest with our exclusive Co-Investing Club at SparkRental! 

Our unique platform allows members to collaboratively evaluate and invest in diverse real estate opportunities, including private partnerships, notes, syndications, equity funds, and secured debt funds. 

With a minimum investment of just $5,000 per deal, our club removes traditional barriers, giving you access to high-yield real estate ventures that typically require $50,000 to $100,000 for individual investments. 

At SparkRental, our Co-Investing Club prioritizes diversification across various property types and geographic locations throughout the U.S. Our carefully selected investments span multifamily units, mobile home parks, self-storage facilities, short-term rentals, and more, aiming for average annualized returns of 15% or higher on equity investments and 10-12% interest on debt investments. 

Each month, our members join interactive video calls to discuss and vet new opportunities, ensuring everyone has a say. 

Best of all, you don’t need to be an accredited investor to join our club!

Whether you’re a seasoned investor or just starting out, our Co-Investing Club offers a streamlined, community-oriented pathway to passive income and financial growth.

Final Thoughts

For both Tim and myself, this strategy of earning in dollars while living and investing abroad has been transformative. It allows us to build wealth through diversified real estate holdings, lower living expenses, and increased personal freedom. Whether you’re interested in short-term rentals, long-term investments, or simply improving your lifestyle while maintaining US-based income, geoarbitrage presents a compelling opportunity for today’s globally-minded investor.