If you are searching for the best countries to invest in real estate, note that the evaluation of return on investment depends on more than one factor. You indeed have to consider how quickly your property will appreciate. But that’s not everything.
This article lists a few factors you should consider before investing with a list of countries that generally provide a high return on real estate investment.
Potential to gain value
Investors often prioritize investments in real estate over other investments because of their potential to gain value over years. However, some areas offer more opportunities and better infrastructure translating into rising prices for real estate; while, other areas don’t perform so well.
Before investing in a particular country’s real estate, note if its political, economic, and business environment fosters growth. Also, see if properties there have been gaining value in past few years.
Sustainable environment
You also have to look at the political conditions of the country. In rare cases, political instability can translate into how easily you can repatriate the funds you earn from your property.
In short, if you have invested in an anarchic country, you may see a sharp decline in property prices following a conflict. Plus, you may also experience a serious delay in transferring back the proceeds of its sales to your country, when needed.
Fluctuation in currency
If you are looking to earn income or capital gain on your real estate property investment, you should be aware of any currency value fluctuations. If the currency of the target country is deteriorating in value against your home country, you will have to calculate the capital gain (minus applicable taxes in that country) after deducting this devaluation.
Crime rate
In some countries, you can only manage and own a property if you reside in the same area. Otherwise, the chances of crimes such as home title theft, burglary, and vandalism remain high.
Only invest if the country has a low crime rate. The administrative institutes should be powerful and corruption-free. And the laws should be strong.
Other factors
You should also evaluate the secondary benefits you would gain from this property. If the capital gain or rental income is not your primary concern, see if the primary reason is justified in the wake of ground realities.
For example, if your investment is meant only to support your business activities in the country, see if the government and infrastructure are business-friendly.
The best countries to invest in real estate
Now, you know the factors you should consider before buying a property in other countries. Let’s consider the best countries to gain a high return on investment.
Germany
If you plan on setting up your business or if you want to live in an economically and politically stable country, Germany makes a great option for you.
Canada
A high standard of living coupled with universal health care makes it a great option for immigration, especially for retirees or digital nomads.
Australia
For those individuals looking to invest in real estate abroad for purely recreational purposes, Australia makes a good choice. It offers varied wildlife and vibrant culture.
United Arab Emirates
If your investment needs to circulate purely around rental properties, this country offers tax-free returns.
France
With the unique benefit of in-country financing options, you get a lower upfront cost when you invest for long-term returns from your rental property in France.
Thailand
Are you looking for an international vacation destination that you can also rent out when not in use? Search Thailand.
Croatia
If you are quick, you can buy property in the beautiful land of Croatia without sacrificing a high return on investment. Note that you won’t be able to buy property in this country after 2023.
Turkey
A flourishing economy is the highlight of this country. But that’s not all! You also get to see different cultures mingling together in this country.
Latvia
Skip this breathtakingly beautiful and highly profitable country if you don’t have acquaintances there.
Colombia
You may find the high rental income tax rate harsh; yet, even higher rental yields will keep you satisfied. The best thing is that its government is investment friendly.
Takeaway
Before you invest in real estate abroad, know that the risk rises as we move out of our country for investment. Consequently, to justify the investment decision, the return on these investments should also be higher to offset these excess risks.