If you’re thinking of buying offshore real estate, start by working with a good local lawyer. Some companies offer title insurance but hiring a well-connected attorney is the best kind of title insurance you can get. Chances are, he or she will know about the local real estate situation. On the other hand, never hire a lawyer recommended by the seller because you won’t know where that lawyer’s interests lie.
The fees you’ll pay to a local attorney typically will be roughly 2 percent of the property’s cost. You also should set up a local corporation to hold the property, which might cost another $1,000-$2,000.
Some areas in Latin America, Central America, and the Caribbean may offer good value now. Properties that might sell for $700,000 in the Virgin Islands or $500,000 in the Caymans may sell for only $250,000 or so in Panama or the Bay Islands of Honduras. Properties are usually bought for cash but in some places, such as Panama, real estate can be bought for 50-60 percent down.