How I Stumbled Into a Dream Retirement Abroad That Ended Up Paying for Itself

How to enjoy retirement overseas and potentially earn money from the property

Editor's Note: This story originally appeared on Live and Invest Overseas.

I once bought a beachfront house, right on the sand, for under $62,000.

After I furnished the sturdy 2,000-square-foot home, I got to spend one of the most rewarding periods of my life there. It was the kind of retirement many people dream about.

The house was on a true tropical island, and I did not buy it as an investment. I wanted it for the clear water, sandy shoreline, fresh seafood, and the company of friendly neighbors from around the world.

I never expected its value to rise when I purchased it, but nine months later I sold it for $110,000.

So, without intending to, that vacation home became a strong investment.

And that was not the only time I made money from real estate purchases that were never meant to be investment properties.

Properties that made life better

I grew up in the countryside, but a year in Manhattan helped me appreciate the excitement and convenience of city living. I enjoyed having restaurants, entertainment, and every urban amenity close at hand, without needing a car.

Although I could not afford a part-time retirement home in Manhattan, I could afford one in another city that strongly appealed to me: Montevideo, Uruguay.

Situated beside one of the city’s most beautiful parks, the apartment was within easy walking distance of tango clubs, the orchestra, the theater, street fairs, and some of the best restaurants in town. It had two bedrooms, making it a wonderful place to live and host visitors, and it also brought in modest rental income when I was away.

Again, I bought it to satisfy a dream, not to serve as an “investment” property. Yet after about four years, I sold the downtown apartment in a single day for 76% more than I had paid.

My own experience has shown me that real estate can be an excellent way to build the retirement lifestyle you want.

Among the world’s best retirement destinations

Since I left the 9-to-5 world in 2001, I have enjoyed retirement in some of the finest places on earth, both full-time and part-time.

For nearly six years, my main home was in Punta del Este, Uruguay, South America’s top beach resort. With excellent beaches, fine dining, and nightlife, it attracts international visitors and offers a remarkable quality of life for the cost.

I have also spent part of my retirement in Ecuador’s Valley of Longevity. With clean air and water, outstanding weather, and sweeping Andean views, Vilcabamba is said to have one of the world’s highest concentrations of centenarians.

The house I owned in Uruguay increased in value by 87.5% over six years, even during the U.S. recession and housing crash. In Vilcabamba, the home I bought rose 120% in four years.

An apartment I purchased as a part-time home in Medellín more than paid for itself, bringing in $2,200 a month in rent when I was not there. When I also include the apartment I bought with my 401(k) as a rental in the same city, my total monthly income reached $4,100, enough to live on from just two properties.

Those returns and income streams are solid, though not flashy, and they would not usually inspire sensational headlines. But I value them even more because none of the properties were originally bought to make money; the profits were a bonus.

I bought each property to create a better life. I was building my own version of the ideal retirement, and every purchase helped me move closer to that goal.

At the same time, because I bought in countries and neighborhoods with upward momentum, the properties carried themselves and produced positive cash flow.

Funding an adventurous retirement

Each property helped finance the next purchase and supported the adventurous retirement I have enjoyed along the way.

I have lived in a beautiful mountain home by a river, two impressive downtown apartments, a large beachfront house on a tropical island, and a spacious home in a famous resort town.

Taken together, those purchases made the retirement I wanted possible.

Your idea of success may differ from mine, but you can pursue it just as surely.

Some people would rather buy one carefully chosen overseas property and enjoy it for years, like a classic second home in the sun.

Others want to retire abroad full-time in a dream location where the cost of living is low and the good life is within reach.

And some are focused purely on returns. Overseas real estate can offer important advantages, including:

• Reliable rental returns
• High yields
• Income outside the U.S. dollar
• Strong capital gains

Whatever your retirement vision or lifestyle goal may be, owning property abroad can be one of the most rewarding ways to pursue it.

Define your overseas goals

No matter what kind of lifestyle or financial target you have in mind, buying property abroad can help you reach it.

By looking beyond the United States, you can:

Enjoy a dream home or a dream retirement while the property helps cover its own costs.

Access a wide range of properties outside the United States at prices that are difficult to find at home, allowing you to reshape both your life and your portfolio.

Benefit from a very low cost of living overseas, in some cases living comfortably on as little as $1,100 a month.

Diversify part of your assets outside the U.S. dollar.

Build a path toward overseas residency and even a second citizenship, if you choose, while broadening your perspective and cultural experience.

Earn income that supports your ideal retirement lifestyle.

Tap into profitable and dependable yield-producing opportunities.

In short, you can enjoy the property of your dreams and still make a profit while living well.

I know it can be done because I have benefited from this approach myself, and it has supported a retirement I otherwise could not have afforded for more than 25 years.