Real Estate Investments : in which countries?
Posted On March 16, 2021
Are you looking at opportunities to invest in real estate overseas? Real estate investment is a challenging field and has only become ever more challenging with the collapse of stock markets, the COVID-19 pandemic, and ever changing oil prices.
There are other risks that are associated with the real estates industry, such as high valuations and pricing issues. The oversupply in some market segments, the impact of emerging technologies, tax and regulatory environment are other risks. One should also think of the interest rate risks, economic and financial market distress, currency risks, and political risks.
Are you looking at best countries to invest in real estate that will bring in high rental yields? You must be looking at generating cash flows besides covering the mortgage of the property from the rent collected. That is akin to getting paid for owning a property.
Overseas property investment demands that you must be in a position to navigate financial systems properly. The financial procedures and real estate transactions in another country may work differently compared to those in your own country.
The following are the best countries to buy real estate and get high capital appreciation opportunities for investors.
Real Estate in United Arab Emirates
The United Arab Emirates is a tax-friendly country which will provide high returns for real estate investors. There are no income tax laws, which means investors are exempt from paying tax on accumulated rent. The rental yield at 5.19% is among the highest which in effect means you can get maximum benefit from your investments.
Foreign investors have a wide variety of properties especially in Dubai, in which they can put their money. Attractive areas for investors in Dubai include downtown, Palm Jumeirah, Marina and International City. These have supported the claim of the UAE being a premier destination for overseas property investments.
Germany is a safe bet for investors seeking opportunities in the European real estate market. Germany is a superpower with a roaring economy and financial might comparable to other leading nations. The low cost of living and income tax rate makes it an ideal real estate investment choice.
Real Estate in France
Another of the popular real estate investment destinations in Europe. France is the best country to invest in real estate for investors who are looking at a long term return. One unique characteristic is that foreign investors can get in-country financing which is rare for many other countries. Interest rates for mortgages are low and refinancing is possible with an up to 85% loan-to-value. Coupled with the fact that rental income tax is markedly lower than other European countries, investors will be happy to put in their money.
The US is considered the best country to invest in property. A number of cities in the country have ranked highly as the best destinations for foreign investments in real estate. Cities such as Los Angeles, San Francisco, New York, and Washington DC are safe bets for investors looking for consistent and stable returns on their capital.
Canada is one of the big economies in the world which makes it attractive for investors in the real estate niche. There are good property options and good standards of living that make the country ideal for real estate investments. Besides its low population, Canada is well known for taking a pacifist approach to different issues and being welcoming and tolerant to immigrants and visitors.
Real Estate in Australia
Australia has a vibrant economy and provides good living standards to its citizens. The country has continuously been well rated as having one of the highest rates of prosperity. These are some of the reasons the country draws real estate investors eyeing potential growth and good returns. Plenty of wildlife areas and other tourist options as well as farm lands are other attractive options drawing interest to the country.
The Republic of Turkey has become a magnet for investments in land, houses and other real estate options with its central location and vibrant economy. Turkey acts as a bridge between Europe and Asia and is a melting pot of different cultures and religions. It passed laws that made the country a desirable destination for foreign investors. Foreigners can now go through a simplified process to acquire Turkish citizenship through real estate investment.
Indonesia is one of the best real estate investment countries favored by a strong economy and the availability of natural resources. People who invest in real estate in Indonesia have a high chance of getting good returns. The domestic market is highly profitable since locals are highly likely to take a property on rent. In this densely populated country, rental yields are always rising and stable. Rental yields are as high as 8.61% and with an average cost of $1,200 per sq. meter in the city center. However, it is not easy for foreigners to buy property in Indonesia but leasehold arrangements are an easier way to navigate the real estate market.
Colombia makes a good choice for foreign property investments seeing that it is a market that is constantly putting out innovative solutions. The real estate market is supported and driven by steady economic growth over the last decade and a doubling of GDP. Investors in property market have been generating profit due to a good rental yield at 6.51%.
Real Estate in Philippines
Another of the ideal locations for people planning to buy property in foreign lands is the Philippines. There is a large population of ex-pats in the country and it helps to drive up the value of property with future prospects being even better.
Delving into the real estate market here will set you up to make profits on your investment. With more than 20 million Filipinos seeking rental property, investors have a role to play in plugging the housing deficit. The return on investment is also boosted by lower property taxes compared to other countries.
Morocco is another good real estate market for foreign property investors. The African country offers affordable property options and a high standard of living. With a good banking system, foreign investors can be confident that their interests are protected. The taxation system is friendly towards foreigners who are not subject to double taxation. Rental income tax in Morocco is 10.7% which brings rental yield to about 5.52%.