Best Places To Invest in Real Estate in 2018
Real estate will always stand out as the best investment class for anyone looking to invest abroad. Property investment stands out not only because it offers an opportunity to enjoy capital increase, but also because it offers a prime opportunity to generate free cash flow in the form of rental income.
Experienced international property investors buy properties at low prices with the aim of selling them after one or two years in a steadily growing market. Others, on the other hand, pursue markets where demand for residential properties or offices is continuously rising and invest in such properties with the aim of generating long-term rental income. The investment strategy thus depends on the market one is entering.
When it comes to real estate investments, the main idea is to buy as cheaply as possible and sell at a higher price. Markets that are in recovery mode are the best for buying the property with the aim of selling when prices soar. Countries with a rising middle-class population, on the other hand, are the best for investing in residential properties
If you’ve decided to invest in overseas real estate, below are some of the countries to look at as they are expected to provide the best returns when it comes to rental income as well as capital appreciation.
Countries To Invest In Real Estate in America
Panama is an exciting and interesting country to buy real estate property for generating rental income given the strong demand. In recent years, resale transactions have slowed thus presenting an opportunity for investors to buy highly undervalued properties.
The island nation presents an opportunity to buy property on the dip given that yields are starting spike. While other markets in the region have continued to struggle, Panama real estate industry has shown signs of resiliency as buyers from Argentina, U.S, Canada, Colombia, and Venezuela keep the market afloat
In recent years, buyers from North America and Europe have taken a keen interest in the country in part because it is a historical and lively atmosphere. The country’s growing relationship with China is also expected to be the catalyst deriving the economy going forward, which should see prices of property ticking higher.
The Country’s interior is as fertile as it can be, presenting a unique opportunity for people who would wish to buy property for agricultural purposes. Investors can thus purchase land with the aim of carrying out organic plantations for agro-profits.
U.S citizen investors can take advantage of tax benefits on offer, to invest in the country. The country does not charge an income tax for the first ten years of investment.
Mexico remains a top travel destination for Americans and Canadians thanks to its exotic beaches. In addition to being a top tourist destination, the country has emerged as a top retirement destination for people, resulting in a spike in demand for real estate property.
Mexico is an ideal property market for investors looking to diversify their portfolio when it comes to rental income. Some of the top markets to take a close look own when it comes to rental investment include Puerto Vallarta and the Pacific coast as well as Playa del Carmen.
These popular tourist destinations have seen an increase in demand for a rental property allowing investors to generate an exciting yield. In addition to the impressive return up for grabs, Mexico also offers financing options to non-residents as it looks to spur the development of the new property, to keep up with the growing demand.
Brazil is another country in America that presents unique investment opportunities for real estate investors. The country’s coastal region is always a buzz of activity given the influx of tourists year round. The result has been an increase in demand for residential apartments targeting not only international tourists but as well as the local holiday market
A net yield of 8% in the rental market should get any investor excited given that it is expected to continue increasing with the expansion of the tourism industry. Property prices in the country, especially in beachfront along the coast, are a bargain even with good yields with a weak currency which favours foreign investors.
Countries To Invest In Real Estate In Asia
Singapore is a hub for everything right from healthcare to finance, science and technology. The Island nation has inherited much of the British system right from the law, economics, trade, and finances. With the country’s growing status on the global scene, so has demand for real estate continued to spike.
Asia is expected to be at the forefront for economic growth going forward. Singapore is poised to be one of the biggest beneficiaries given its strategic location as the gateway to the Asian Continent. With the country becoming a banker nation in the Asian market, so are multinationals opening up offices in the country.
High net worth investors, as well as big market cap companies, are relocating to the former British colony given its conducive environment for doing business. The result has been an increase in demand for property to house the companies as well as the high net worth investors.
From an investment standpoint, property in Singapore is pricey thus making it a prime location for the well-to-do investors. Property prices in the country are constantly in line with the rate at which the economy is growing.
The growth has essentially presented an opportunity for real estate investors to generate returns from rental income. Demand for office space as well as residing areas is constantly on the rise given that the country has attained the status as a safe haven.
Malaysia is another country in Asia, worth paying close attention to when it comes to real estate investments. A tropical climate supplemented by beaches as well as historic monuments has seen the country grow to become one of the top tourist destinations in the region.
Buying property in Malaysia presents investors an opportunity to earn a consistent passive income. Being a landlord in the country also allows one to get paid for owning something rather than paying to own it.
Unlike Singapore, real estate properties in Malaysia are relatively cheap which presents an opportunity for investors to buy on the low and be able to generate a good fortune upon selling in the future.
Thailand is one of the most travelled countries in Asia given its exotic beaches, landscapes as well as historical monuments that make it a preferred destination for westerners and expatriates. The country’s real estate industry is one of the strongest in the region in part because of its value and long-term prospects
Amidst the booming real estate industry, there are some restrictions on how foreigners can own property in the country. For instance, a foreigner can only hold a freehold title to the construction on the land. However, foreign investors are also allowed to own condos as long as they don’t own more than 49%
The country’s condos market is thus one of the bright spots in the broader industry for foreign investors. Condos are relatively cheap and easier to manage thus allowing foreign investors to generate significant rental income on buying a 49% stake in them.
Last year, Bangkok was one of the most visited cities in the world, something that saw demand for residential properties skyrocket.
Countries To Invest In Real Estate In Europe
Spain is one of the countries that felt the full effects of the financial crisis of 2007. As the economy tumbled so, did the once-booming real estate industry come tumbling. Fast forward, the economy has made tremendous strides in presenting a unique opportunity for real estate investors to invest in highly undervalued properties.
The European nation has one of the most extensive beach fronts in Europe, which makes it a top tourist destination in the region. The country’s booming tourism industry has also seen an influx in investors from Europe looking for places to reside as well as office space to set up businesses.
The influx of tourists and investors has only gone to make Spain an attractive property investment location. Property prices are yet to pick up to the pre-financial crisis era. Properties are going for pennies to the dollar, which presents investors an opportunity to buy highly undervalued assets.
The relatively low prices for properties should allow investors to generate significant rental income in the long term at the back of the booming tourism industry. At the same time, property bought right now should fetch a substantial value in the long run as the economy continues to show signs of robust growth.
German is another top real estate market in Europe, which has been growing steadily over the past decade. The industry is one of the most stable in the world and is used by investors around the world for capital maintenance.
Property prices in Berlin and Munich have been growing at a steady 2.5 times over the past few years. However, the price is expected to increase by 5% this year. Given that properties have become relatively expensive in developed cities of Berlin and Munich, investors are slowly shifting attention to smaller Bavarian cities showing prospects of growth.
Ingolstadt, Landshut, Furth, and Regensburg are some of the cities that have emerged as a top destination for investors looking to take advantage of the country’s booming real estate industry. Property prices in these cities are 1.5 to 2 times cheaper making them desirable for long-term investors.
Little known Hungary is slowly emerging as a top destination for real estate investors. Unlike other countries in the continent, Hungary seems to offer an unmatched value proposition when it comes to property investment.
What makes Hungary stand out from other countries is the fact that it is relatively cheap to buy properties in the country compared to other top cities like London and Berlin. For investors focused on Capital appreciation, then Hungary is the country to invest in, as property prices are relatively low but growing at an impressively steady rate.
The country’s capital, Budapest has become an alluring place for property investors having been ranked as the 10th most attractive, according to the annual Investor Intentions survey. Rental laws are favourable for landlords, which accord investors an opportunity to take advantage of the 5-6% yield currently on offer.
The Middle East has over the years been associated with conflicts and wars. However, some countries continue to offer an exciting value proposition when it comes to real estate investment. Billions of dollars have been pouring into these countries as foreign investors looking to own a piece of commercial as well as luxury residential properties.
Qatar remains top on the list, in drawing real estate investment from investors all over the world. Unlike most countries in the region, Qatar allows foreign investors to buy property in freehold development and allows buyers to receive residency rights automatically.
Most foreign real estate investors buy property in the country with a view of selling them through property brokers once their value increases. Strong economic growth with low currency exchange rates are some of the other positive attributes that work in favour of foreign real estate investors in the country
Jordan is another top real estate market for foreign investors in the region, in part because of its stability and tranquillity. While it can be a little bit tricky for a foreign investor to buy property in the country, bypassing the barriers presents a unique opportunity for an investor to benefit in the long term.
An influx of refugees into the capital has resulted in an increase in demand for small apartments of which foreign investors can take advantage of.
With real estate investment, you can never go wrong with on buying a property in a prime location where demand for residential property is constantly rising. The countries mentioned above are some of the best for real estate investments given the return on investment up for grabs.