Buying real estate abroad can be an excellent idea for many reasons. First of all, it’s often a lot cheaper than buying in your home country. Secondly, it generates a cash flow that can make it possible to buy property at home later on – which again opens a lot of doors for younger buyers who would otherwise find themselves locked out of the market.
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Finally, it provides you with a great place to stay when you’re in the country either on holiday, as a pensioneer or an expat. It’s just a perfect fit for our dreams about a warm, breezy, tropical island life.
Some countries and even cities are a much better option than others, though, and if you’d like to purchase property as an investment rather than for sentimental reasons, it’s a good idea to research the markets first.
Here is a comprehensive guide to the hottest real estate markets abroad in 2018 as well as how you should proceed with becoming the proud owner of a house or a flat in your chosen country.
#1 Panama
Panama is a highly recommended country for real estate purchases this year. Panama City, in particular, is a buyer’s market for the time being but it’s expected to rise again in not too long.
That’s why you better invest sooner rather than later if you’ve been considering Panama as a country for real estate investments. Have a look at https://internationalliving.com to read more about investing in Panama.
Americans as well as Europeans are known for investing heavily in Panama’s real estate market, but their relationship with China is perhaps a bigger reason for the booming market. If the Chinese continue to come in volumes, the rises will soar quite soon – and you could be getting a lot for your money in just a few short years.
Not all real estate purchases are for investing and then selling, though, as you might like to keep it for a bit longer. Panama is also a great country for agriculture as the land is so fertile. If you’re into farming already and looking for a good investment abroad, you can certainly get a lot for your money by participating in organic plantations.
#2 Thailand
Thailand is another country that’s great for agricultural investment, by the way, but also for general real estate investments as their economy is quite strong and their tourism is booming. If you love tropical and beautiful countries, you simply cannot go wrong by investing in Thailand’s real estate market.
The biggest problem for foreigners investing in Thailand, however, is that they’re quite restricted in terms of what they’re allowed to own. Foreigners are only allowed to own property leasehold and, while they are permitted to hold freehold title to construct on the land, this might not be enough for all foreign investors.
Foreigners are also allowed to own condo freeholds as long as they don’t own more than 49 % of the property. A lot of foreign investors are therefore putting their money in the condo market in Thailand – which is also quite a lot cheaper than the regular real estates, by the way.
If you’re wondering about where in Thailand you should invest, it’s a good idea to look at the cities that have the most tourist. Not just because the economy will be in full bloom in these areas but also because you’re likely to have a lot of holiday-goers who would love to rent your place when they come to visit Thailand.
Bangkok was the city with the most visitors last year; it actually welcomed more visitors than both Paris and London. Put your money in Bangkok, and you should be able to rent it out in no time, in other words.
#3 Turkey
The Turkish lira went through some massive trouble this summer, and for that reason, Turkey is an unreasonably affordable country to invest.
While their political landscape has been a bit uncertain lately, the economy is expected to be back up on its feet – so if you’d like to invest in Turkey, now is the time to do it. The middle class is growing stronger as well, by the way, and a lot of students living there are looking for places to rent.
You won’t have a shortage of renters, in other words, and should be able to make quite a lot of money of your investment.
Not only is Turkey a very popular country among tourists, despite their recent political turbulence, but it’s also affordable and beautiful. Istanbul, in particular, is a popular holiday destination and should continue to be so in the future. If you’re looking for a city to invest in while you’re in Turkey, look no further than Istanbul.
One of the main points about investing in Turkey is that the cost of entry is very low. Most likely, you won’t even need to take up a loan to finance your investment – and for that reason, it’s a great way for young people to get into the real estate market.
#4 Portugal
Both Spain and Portugal are a hit among foreign investors. Not just because it’s warm, affordable, and beautiful, which naturally attracts a ton of tourists each year, but also because the real estate market is on the move and has been for some years.
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The thing with investing in Portugal is that you need to know where to look. While properties in Lisbon probably was an affordable buy ten years ago, the prices on some of the properties are now beyond what seems reasonable. Look past Lisbon, in other words, and use it as an example of how well-off you could be if you invest in one of their other up-and-coming cities.
You’ll find several of them if you know where to look, and you’ll most likely get a lot of money for your investment by renting it out to tourists – and, of course, watching it boom just like Lisbon did. Try to focus on the areas that are not yet as popular among tourists such as the areas along the Algarve coast.
Plus, Portugal is one of the countries that actually offer mortgages to foreign investors. That way, you’ll be able to finance your new property as well and can simply lean back, and watch your investment grow in a couple of years.
What if I can’t get a mortgage?
Now that you know about four of the best countries to invest in this year, it’s time to look at the difficult stuff. While some countries, such as Portugal, do offer mortgages to non-residents, you can’t rest assured that this is something you’ll get in any country.
That’s why you need to be prepared and have a few alternatives up your sleeve before you decide on anything final.
The best thing would, of course, be if you could just pay everything off at once. This isn’t always an option, unfortunately, even if you manage to find something super cheap. If you already own property in your home country, you should consider trying to use the equity of your existing property to finance your new one.
That way, you can sell your house at home when you’re ready to move abroad for good – and simply use the money to pay off the rest of the mortgage. It’s not a quick-fix but at least it’s an alternative if everything else fails.
How do I start the process?
Now that you know where to invest and how to get it financed, it’s time to get down to business. Start to search the property market in the country you’re interested in online, such as through https://rumahdijual.com/jakarta-selatan/ if you’d like to buy in beautiful Indonesia, and get to know the areas through this.
While it’s difficult to do this when you’re not actually in the country, it’s a great way to get started and understanding the prices, areas, and where you can find a more affordable deal. The more research you manage to do before deciding anything, the better off you’ll be in the future.
If you’re serious about buying property abroad, it’s a good idea to get in touch with both a real estate agent and a lawyer first. Try to find one that is fluent in both languages, and up to date on how foreigners should proceed with buying property in the country.
It’s important to safeguard yourself a bit when making a big investment like this as you don’t understand the market and the country’s laws as well as you understand those at home. By releasing this, and admitting to now knowing everything, you’ll do yourself a huge favour.
