Buying real estate overseas as a vacation home or investment property is the ultimate goal for many of us. One of the biggest reasons is that international property stands out among other investment options. It is a hard asset and can generate cash flow while building real, long-term wealth.
Whether you are a seasoned investor or want to make your first overseas investment, finding good opportunities is tricky and requires extensive research and due diligence.
Are you looking to invest in real estate abroad? Here’s what you should know.
You can find great opportunities online.
Whatever you want to buy can be bought online today – yes, real estate too!
If you are searching for overseas properties to invest in, online databases are a great place to start from. One reason is that you can customize your search as per your requirements and budget and filter out properties that look promising within a matter of minutes.
Websites like dotproperty.id let you search properties in 20 countries, including U.K., UAE, Australia, Vietnam, the USA, and many other growing economies.
After selecting your favorite property from the list, you can request the agency for more details and the final price and then it’s up to you to negotiate and close the deal.
Although you get the best offers for upfront cash, you can also finance your purchase through a mortgage. However, keeping track of the repayment can be a little tricky, and you might need help.
Trusted real estate agencies can make a huge difference.
Another way to get your hands on overseas property is by contacting a real estate agent or developer directly.
This is a more practical approach, one that can get you more insight into real-time opportunities and challenges at the same time. Visiting the agent and your desired property gets you a chance to see and verify the details and the amenities on offer.
Plus, meeting real estate agents can be beneficial to understand the country’s laws that apply to you as a foreign landowner. This helps clear out any doubts or second thoughts that you might have.
Besides providing you support throughout the buying process, agents will help decide what kind of property suits you better and offers good returns.
Overall, it’s a safe and more profitable way of buying property as you get introduced to a network that can offer investment opportunities that are not made public yet.
Talking about investment opportunities, let’s look at some of the most rapidly growing economies to invest in.
Australia
Sydney Australia is the housing bubble that never bursts. Finding a property that cash flows in Sydney can be pretty tough. Although, If you’re thinking about investing in a property here, you can make huge gains in appreciation. Areas like Sydney are much more expensive to get started. However, if you can afford the downpayment, it isn’t far fetched to see YOY appreciation upwards of 19% for 2021.
Other areas such as Perth, have the potential for similar growth and as of 2021 are priced more fairly. You may be able to find some cash flowing properties, but you’ll need to do some research.
Instead of crunching the numbers manually, you can use online tools and calculators to get estimates of monthly mortgage repayment with local variable interest rates. Calculators like this make it very easy to figure out your potential monthly payment.
Panama
Panama is one of the best places to buy real estate overseas, mainly because of two things: its apartments for rental income and farmlands for agricultural yield.
Though rents have dropped in some areas after lockdown restrictions, economists expect Panama to come out of the pandemic with minimal damages.
Also, Panama’s new relationship with China indicates growth in its economy. When that happens, property values are expected to shoot up.
Portugal
The property market in Portugal has been consistently rising and attracting international buyers for the last 6 years.
Though prices have peaked in most parts of Lisbon, the rest of the country promises good value and opportunity, especially if you invest in development or renovation projects. By using car hire Albufeira you can tour the attractive cities along the coast which have thriving real estate opportunities. The road network in Portugal is well maintained, allowing you to use vehicles to tour investment options and select the best investment for you at your leisure.
Another great advantage is the possibility of getting a mortgage even for non-residents.
Mexico
Set aside Mexico’s crime history of drug lords and cartels because it’s a thing of the past now. Today, Mexico is one of the top tourist destinations, particularly for Canadians and Americans for both tourism and retirement life.
Rental properties in its popular tourist towns generate a steady and handsome yield. Plus, U.S. lending institutions in Mexico offer financing options for non-residents, making it a powerful contender for real estate investments.
Thailand
Thailand’s exotic climate, friendly locals, and low cost of living make it a hot spot for expats and tourists.
Though the Thai government doesn’t allow you to wholly own the land, you can purchase a 30-year leasehold or obtain freehold after setting up a limited company. This might upset you a little, but wait, there’s good news.
If leasehold or freehold seem complex, consider buying apartments and condos, as you can own them 100% — this is by far the easiest route to own property in Thailand. And the cherry on the top is “zero property taxes.”
The country is also slowly easing its policies for foreigners, and banks have now started lending to non-citizens.
This wraps up our “how” and “where” about overseas real estate investments, but here’s a word of warning: try to reach a seller directly and avoid intermediaries as much as possible.
Many people pose as real estate experts and scam people, especially foreigners. So, always work with established real estate companies!
Saving for a house deposit may be a quicker ordeal when investing abroad, as many foreign countries have more affordable property markets than your domestic property market.