For Sale by Uncle Sam

Just how overheated is the real estate market in London? The U.S. government is finding out firsthand.

If you are a hedge fund manager looking for that perfect second home overseas, tell your real estate agent to check with the bureaucrats in D.C. The State Department currently has 29 properties for sale in 21 countries, reports the Associated Press. Care to haggle with Uncle Sam? Whether it's a downtown London pied-a-terre or a vacation home in Belize, the U.S. government might have just the right spot.

Ambassadors abroad have moved to more secure areas or upgraded to more posh digs. Diplomatic residences are on the market in Tripoli, Libya ($1.5 million, but "title issues exist"), Ottawa, Canada ($2.2 million, also known for its starring role in the Paul Newman film Mr. and Mrs. Bridges), or Kathmandu, Nepal ($6 million, which the State Department says "gives one an impression of a grand colonial estate"). If your budget is a bit smaller, consider a $215,000 home (with alarm system!) in Lima, Peru, or a four-bedroom townhouse in Warsaw for $400,000.

Act fast, because these properties are sure to be snapped up. The bidding for the "crown jewel" of the government's classifieds list closed in April. The former U.S. Navy annex in London's Mayfair district sported a $180 million price tag and 26,000 square feet. The property was marketed as a great candidate for conversion into a five-star hotel, and the government is evaluating multiple offers. Wonder if they'll get a tax break on that one?

by Megan Barnett

Photo by Andrew Parsons/Associated Press