And scarcity is a huge part of this equation. We buy in places where there are supply constraints for the best real estate, like limited comparable land, or where land for future development is available only at sky-high prices. Today the scarcity situation is being exacerbated by permitting, bureaucratic, and supply chain bottlenecks; inflation; and materials shortages.
This was all new real estate demand and gave owners a whole new high-yield option. Here you can gross double-digit yields from blue-chip real estate renting to high-quality tenants. That is, of course, once you buy right.
Ronan McMahon is the editor of Real Estate Trend Alert and a contributing editor to IL. He spends at least six months a year crossing the globe in search of the best real estate deals worldwide. For more about his RETA group, and to become a member, go here: IntLiving.com/retamag.
When you invest in real estate, you diversify your assets. When you invest in overseas real estate, you go a step further and reduce your exposure to your home market. If things hit a speed bump in the U.S. both real estate and the stock market will fall. The rest of the world can be in crisis, but if you find the right place and the right deal, you will still be making money.
This is an emerging world-class city. The rapid growth of both the economy and the city is driving demand for real estate, yet like other global hubs such as Hong Kong and Singapore, the best land is incredibly scarce.
High Demand: In cities across the globe, debate rages about changing urban zoning, occupying abandoned properties, and building out onto the sea. Meanwhile, real estate prices continue to climb.
Panama City is facing the same scenario. As population grows and developable land runs out, an enormous real estate squeeze will hit. And when the big squeeze kicks in, it will push real estate prices only one way: up.
Ronan McMahon is a global real estate scout. He spends six months of every year on the road, finding and negotiating opportunities to buy low and make serious profit from capital appreciation, rental income, or a mixture of both.
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If you're a beach lover, there's little compromise in swapping Florida's sunny coast for the world-class sands of northeastern Brazil. The standout city along this northeast coast is Fortaleza. Along with its surrounding beach destinations, Fortaleza is a major draw for foreign real estate investors. It's also a hub for Brazilians, Europeans, and North Americans seeking a second home, drawn by the area's fine sandy beaches, great weather, and rich lifestyle.
Getting onto the property ladder has always been one of the safest and best ways of securing long-term wealth. Buying cheap real estate overseas gives you another level of security and diversification.
Unlike stocks and shares, real estate is a tangible asset you can enjoy. Buy real estate in a country where you like spending time, and visit it for vacations. The rest of the year you can rent it out for extra income. Alternatively, you can buy real estate in a Southern Hemisphere country and use it as an escape from the U.S. winter.
Another city in Brazil where you can pick up US$50,000 beachfront real estate is Vila Velha, otherwise known as Little Rio. Situated to the north of Rio de Janeiro, Vila Velha is a beach town surrounded by tropical forests and green-topped mountains.
While the real estate is not as cheap as Cali, Medellín still has areas that provide affordable real estate. Property prices in Medellín have been increasing rapidly during recent years as the market heats up. The U.S. dollar has strengthened against the peso during the same period, meaning prices for U.S. buyers have remained constant.
Santa Marta proves Colombia can offer bargain real estate on the Caribbean coast. While most tourists go to Cartagena, Santa Marta is a short trek up the coast and offers everything Cartagena has but at a much lower price.
While areas of Mexico have experienced a rapid rise in prices, in 2021 you can still find plenty of opportunities for cheap real estate. Beachfront property is expensive, but for those who love the fresh air and the spectacular views of mountainside living, Mexico is perfect. Being close to the States means shorter flight times than almost anywhere else.
Almost 50% of respondents included geopolitical and climate change issues such as rising sea levels among their primary concerns when it comes to real estate investment and about 40% cited currency fluctuations and interest rate risks.
We understand that currency fluctuation is one of the biggest risks that investors should consider. If you are an investor looking to make a real estate investment in 2021, give us a call or fill in the form below to make sure you get the best value for your money.
The main risks of this category include less certainty around municipal requirements for development, lack of knowledge and lack of transparency on local governance (fiscal and legal) and real estate markets.
The main risks related to economic slowdown that could affect real estate investments in 2021 include global coordinated economic slowdown, decelerating US Gross Domestic Product (GDP) growth, and decreased growth in some European countries.
As already mentioned in previous surveys, the growth and strength of the US market represent a constant opportunity for real estate investors in 2021, as well as low-interest rates and attractive yields.
Diversification is one of the most prominent real estate investment opportunities that resulted from the survey. In particular, scaling of the investment portfolio, the diversification to create long-term cash flow, market liquidity, and real estate quality.
Simple size of the US market and greater liquidity means real estate investment opportunities are still there. Other opportunities include higher growth than European countries; better cap rates in the US and positive debt financing.
US-specific strategies are opportunities that real estate investors should consider making a good investment in 2021. When talking about US-specific strategies, it is intended for the consistent growth in innovation centres across the country, the concentration of job and population growth in spite of all the regulatory risks previously mentioned.
Now that the main risks and opportunities of real estate investment in 2021 were outlined, it is also important to mention the actual places where it is more convenient to invest for real estate investors.
In 2020, Los Angeles has been voted as the best city for real estate investment, moving swiftly up from 7th place in 2019. Los Angeles is often considered to be a wise choice for long term real estate investment as it consistently remains an attractive place to live and investors almost always get their money back at the very least, with most making a healthy profit.
London dropped three positions from the 2018 survey, with New York dropping to position 9 in the Global Cities category. Paris is number 2 and the best previous European city for real estate investment Berlin dropped to position 8.
New York used to be named the top US city for the last years, holding a substantial lead over Los Angeles. But things turned around in 2020, where Los Angeles topped the charts for the best global city to make real estate investments. Here is the ranking
If you are a property investor and are looking to make an overseas real estate investment, we can give you expert and tailored guidance to make sure you get the most out of the currency conversion. Feel free to give us a call or fill in the form below.
When successfully worked into your offshore strategy, foreign real estate can earn you higher returns, protect your assets, benefit your tax strategy, diversify your life, and even protect you from instability at home.
There are many places in the developed world that meet this standard. There are even parts of Cleveland, Ohio, where I grew up, that meet this criterion. The average property value there is sitting somewhere around $900 per square meter.
Phnom Penh is a city on the rise with all kinds of opportunities for business and real estate investment. The Cambodian government is out to bring in foreign investment of any kind to help build its economy. This makes it a great place not only to buy real estate but to do business as well.
Because of an influx of business to the country and good economic policies, the Georgian economy is steadily growing. While you might not be able to find properties that fit our criteria in nearby cities like Yerevan or Baku, Tbilisi is lagging slightly behind them, which translates into lower real estate prices overall.
Acclimate yourself to these countries by spending time in them. Put $5,000 in a Georgian bank and spend six months getting to know the country and your situation before you worry about investing. If buying cheap real estate is what you want to get into, do what you can to get comfortable.
Real estate business happens to be one of the oldest and most lucrative businesses in the world. Prior to globalization, people invested in real estate in their own localities but as the world has become more globalized and connected, real estate investors effectively have access to nearly the entire world for investment.
For our list, we are going with average annual growth rate in real estate as the key metric for countries while considering other metrics as important peripherals. We used housing growth data from macroeconomic data platform CEIC.
Poland is an Eastern European country. The country has an average housing prices growth rate of 2.3% based on data from the year 2007 to 2021. Poland is an emerging market with a lot of potential for growth. The rule of law in the country is improving. foreign investment has also been increasing with a 26% increase from the previous decade. All these factors come together to make Poland an attractive market for real estate profits. The country ranks 20th in our list of the best countries to invest in real estate in 2021. 59ce067264