Real estate investment has long been among the safest ways to grow your long-term wealth, and as a hard asset, many people rightly consider that their cash is safe as houses when tied up in property. However, stepping outside the domestic market can be intimidating, and first-time investors looking to make the leap abroad have many factors to consider. The potential returns, however, keep investors coming back time and time again, and for good reason.
If you are considering investing in real estate abroad, we highly recommend that you research your chosen market well in advance. Each country has its own regulations regarding foreign investment and some are more hospitable than others. However, if you are willing to take the plunge, then there are many exciting options from which to choose. To get you started, we take a look at five top destinations that are currently popular among foreign investors and still provide an excellent return on your investment.
A perennial favorite among foreign investors, Costa Rica still offers a wealth of opportunity for savvy buyers. What’s more, there’s plenty of information online detailing how to navigate the market and land yourself a bargain. Beachfront house prices are not what they used to be; however, they are still excellent investments and demand is always high. Additionally, the Costa Rican government offers a warm welcome to foreign investors and the buying process is relatively easy. Read more about the market conditions and how to buy a property in Costa Rica with this guide.
Much of the market in Thailand focuses on condos since the government places restrictions on foreigners owning land. However, there’s plenty of room for maneuver, and the sharp rise in tourists over the last ten years mean that rental investments can be lucrative. With this in mind, property prices are rising quickly, so if you want to invest, then it’s probably a good idea to do it sooner rather than later. Bangkok is an ideal choice for first-time investors.
After the troubles in 2016, many foreign investors stayed well clear of Turkey. However, since that time property prices in the capital have surged, and there was plenty of money to be made for anyone willing to take a little extra risk. Entry level rental investments are still extremely low, and with a large tourist trade plus a massive student population, Istanbul is a very tempting prospect as economic growth continues apace.
Foreign investors should be looking towards the capital Santa Domingo as a good bet for the future. Tourism in the Dominican Republic is rising quickly yet steadily, and as the country enjoys an economic boom, business travelers are also looking for a place to call home. Furnished rentals provide an excellent source of cash-flow, however, for a seriously good return, look towards pre-construction investment in a popular area of the city. Additionally, there are opportunities to qualify for financing within the country if this is required to make your first purchase.
After the financial crisis decimated the Portuguese economy, there were areas of Lisbon where you could buy property for cents. Today the market is much healthier, and prices have been on the rise since 2015 as the city gentrifies. Do not be disheartened though, the city is expanding quickly, and outlying areas are becoming hot spots for both local and foreign investment, particularly if you are up to taking on a renovation project. Additionally, Porto is a popular tourist destination, and Coimbra has a large student population, with both cities providing excellent returns on rental investments.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.