The List: Best Places to Buy a Summer Villa

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Bulgaria

Two bedrooms on the beach: $150,000 and up

Hot spots: Bourgas, Varna, Golden Sands, Sunny Beach

The attraction: Its dirt cheap. This former Eastern bloc country has reinvented itself as a holiday destination with one of the hottest second-home markets in the world. With its Mediterranean climate in the summer, villas along the 220-mile Black Sea coast are increasingly popular. The predominantly European buyers are finding the market flush with steals: A new two bedroom apartment in a seaside resort can be had for just over $150,000. But with prices rising by at least 25 percent per year, so youd better get in before Bulgaria adopts the euro in 2010. The conversion could send prices soaring.

Only buy if: You hire a scrupulous Bulgarian lawyer to protect you from any shady dealings.

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Nicaragua

Two bedrooms on the beach: $200,000 and up

Hot spots: San Juan del Sur, Popoyo, Granada

The attraction: Its a diamond in the rough. Peaceful for nearly two decades, Nicaragua has seen its second-home market quietly explode in recent years. Beachfront property prices increased 350 percent from 2001 to 2005, yet prices remain a fraction of what you might pay in neighboring Costa Rica, and the beaches are just as nice. Plus, generous tax incentives allow foreigners to bring furniture valued at up to $10,000 and a car valued at up to the same amount into the country, duty-free. As a bonus, Nicaragua has made it easy for Americans to become citizens, requiring only proof of $400 of monthly income if youre over 45.

Only buy if: The idea of owning property in a country governed by former Sandinista leader Daniel Ortega doesnt scare you off.

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Bali

Hot Spots: Seminyak, Legian, Kuta, Sanur, Canggu, Lovina

Two bedrooms on the beach: $350,000 and up

The attraction: Its a chic tropical paradise. After a terrorist attack in 2002 and a SARS outbreak in 2003, many believed that Balis tourism industry would crumble, and its real estate market with it. But after a brief downturn, the island has rebounded beyond anyones expectations. Nearly 1.7 million people visited Bali last year, primarily from Asia and Australia, and stylish villas are increasingly part of the package. Bargain hunters should search on Balis north coast for the best deals; those looking for nightlife and gated communities should stay in the more populous south.

Only buy if: You dont mind expat neighbors that moved to Bali to find themselves.

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Southern Spain

Two bedrooms on the beach: $500,000 and way, way up

Hot spots: Costa del Sol, Granada

The attraction: Its still fabulous. For years, the south of France dominated the second-home market in Western Europe. While still popular, high prices have forced potential buyers to look elsewhere. Spain has stepped up to fill the void, selling about 100,000 homes to foreign buyers each year. A temperate climate, relatively reasonable prices, bright sun, and a culture rich with music, art, and food are attracting buyers, mainly from Europe, the United States, and, increasingly, the Middle East. Spain is especially popular among the British: More than a third of all the foreign second-home purchases by Brits in 2006 were in Spain.

Only buy if: You dont mind a crowd and have the stomach to ride out a continued downturn in the housing market.