By: Jacob Stevens

Purchasing property abroad presents unique opportunities but also notable challenges compared to buying domestically. Michael Cobb, a seasoned real estate developer and founder of ECI Development, shares valuable insights into the nuances of investing overseas, discussing key differences, cultural considerations, and strategies that may contribute to a successful experience.

One of the significant contrasts between purchasing property in developed regions like North America and Europe versus emerging markets is the transactional framework. Cobb notes that in the developed world, the “seller beware” principle predominates, supported by regulations like lemon laws to protect buyers. However, outside these regions, the environment shifts to “buyer beware,” placing greater responsibility on purchasers to navigate potential pitfalls. Without extensive regulatory safeguards, buyers are encouraged to exercise heightened diligence to mitigate risks such as fraud, misinformation, or unexpected issues—such as discovering only cold water is plumbed to the showers in a tropical home.

For those considering property abroad, Cobb’s primary advice is to take time before making a decision. “Margarita Madness,” or impulsive decisions fueled by the excitement of vacation, is a common trap. Exercising patience and evaluating the purchase with a rational approach can help prevent costly mistakes.

Engaging independent professionals is another important step. Cobb underscores the value of hiring a reputable lawyer who is not affiliated with the seller or developer. Embassies often provide lists of English-speaking lawyers to assist buyers in their vetting process. Additionally, working with a certified realtor, ideally one holding the Certified International Property Specialist (CIPS) designation, can offer significant benefits. While this may involve additional costs, the expertise and guidance provided can contribute to a more informed decision-making process.

Bridging Cultural Gaps in Home-Buying

Cultural differences can influence the home-buying experience in various ways. For example, Cobb highlights that homes in tropical Latin America often feature showers with only cold water. Buyers unfamiliar with this norm might overlook it during inspections, only to face costly retrofits later. Similarly, architectural preferences differ—closed-off kitchens, designed with the assumption of hired help, are standard in Latin America but may not align with North American buyers’ preference for open-concept layouts.

Another noteworthy distinction lies in what is included in a property purchase. Items such as appliances, light fixtures, and even internet wiring may not be part of the sale price in some regions. Gaining clarity on these expectations in advance can help buyers budget appropriately and minimize surprises.

Vision Behind ECI Development

Cobb’s journey into overseas property development began in Belize in 1994, where he founded a mortgage company. While inspecting properties as loan collateral, he observed disparities between local construction practices and North American buyer expectations.

From misaligned door handles to insufficient electrical outlets, these details often pose challenges for buyers. Recognizing an opportunity to address these gaps, Cobb founded ECI Development in 1996. The company’s mission was clear: deliver properties designed with North American standards while maintaining affordability and respecting local culture. By addressing seemingly minor issues, such as proper lighting placement or consistent outlet heights, ECI aimed to create homes that felt familiar and comfortable for its target market.

Balancing Modern Amenities with Sustainability

ECI Development integrates modern amenities with natural beauty and local culture while striving to uphold sustainability—economic, environmental, and social. Cobb explains that creating economically sustainable communities involves reaching a critical mass of 200 to 300 homes. This scale fosters social and economic activity, such as shops and restaurants, which enhance residents’ quality of life.

Environmental sustainability can also benefit from this approach. Cobb suggests that poverty often drives environmentally destructive practices like subsistence farming. By generating stable economic opportunities, ECI aims to reduce these pressures, potentially contributing to a more sustainable environment.

Investing Overseas: Considerations for First-Timers

For those exploring international real estate investment, Cobb encourages taking a measured approach. He suggests considering an allocation of 5% to 10% of one’s portfolio to offshore hard assets as a potential hedge against risks concentrated in a single country. Recognizing the difference between actual risk and perceived risk is essential. For instance, many fear flying but underestimate the dangers of texting while driving. Similarly, perceived risks of offshore investments often stem from unfamiliarity rather than fundamental threats.

To navigate uncertainties, Cobb advises relying on data and analytics rather than emotions or fear. Conducting thorough research and seeking professional guidance can assist investors in making more informed decisions.

Legacy Through Development

Cobb’s vision for ECI extends beyond individual properties to fostering lasting communities. “We build homes out of solid materials that will last for centuries,” he shares. These neighborhoods promote long-term stability, providing locals with steady jobs and residents with spaces to create meaningful experiences.

Ultimately, Cobb’s legacy is rooted in empowering others to create their own legacies. By developing sustainable, welcoming communities, ECI seeks to enable families to share memorable experiences across generations. This commitment to quality and impact defines Cobb’s work and serves as an inspiration for future leaders in the industry.

Investing in overseas property offers exciting possibilities, but success often requires careful planning and a willingness to adapt. By taking a deliberate approach, embracing cultural differences, and considering sustainability, buyers can navigate challenges and potentially enjoy the rewards of owning a slice of paradise abroad. Through his work at ECI Development, Michael Cobb exemplifies how thoughtful development can bridge gaps, address diverse needs, and contribute to a lasting legacy.

Find your copy of How to Buy Your Home Overseas on Amazon.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published by Stephanie M.