Real estate is a challenging field due to changing oil prices and stock markets. Therefore, you should investigate countries that give you high rental yields.
Investing in properties that generate cash flow is important. Investing in other countries requires efficient navigation of the financial system, as real estate transactions and financial processes in other countries work differently than in your home country.
10 Best Countries to Invest in Real Estate
We select suitable properties based on high rental yields and simple financial systems. Based on these criteria, we have selected the 10 best countries to invest in. They are Turkey, Uruguay, Panama, Thailand, Dominican Republic, Mexico, Malaysia, Canada, Portugal and Australia.
Why Invest in Other Countries?
Investing only in the domestic market can be risky due to falling prices. If you have stocks both locally and overseas, your profits will be more volatile because the two markets don't rise and fall at the same time. This reduces risk rather than increases it.
If you want to know how to invest in Turkey, read our blog post.
What Are the Advantages of Investing in Real Estate?
Real estate investing requires a lot of capital to get started. Then you have to cover the maintenance costs of the property. However, if you complete the steps, real estate investing is one of the best types of investments because it creates ongoing passive income and can be hugely profitable as real estate appreciates in value over time. Furthermore, shelter remains one of the basic needs of human existence. So there is always demand. Therefore, this market shows no signs of disappearing in the coming decades.
It is recommended to invest in overseas real estate. This will lead to wider market exposure and investment opportunities as well as higher profits due to the advantages and different market policies of other countries. Your portfolio won't depend on just one market. This reduces the risk of loss. Also, if your country's currency is devaluing, you're better off than most because you have solid investments abroad.
Cash Flow from Real Estate Investments
General income from real estate investments is usually the second largest source of income for foreign investors after mortgages and operating expenses. Investing in real estate can bring you 6% or more cash flow.
Tax Benefits and Deductions
Investors can save money when paying taxes by taking advantage of numerous tax breaks and deductions. The cost of purchasing and improving an investment property is amortized over its useful life. 27.5 years for residential real estate and 39 years for commercial real estate. Your tax revenue will be reduced by decades of deductions.
Appreciation
Real estate values increase over time, and with proper investing, you can make a profit if you decide to sell your property. Rents are also increasing every year, resulting in more cash flow.
Real Estate Leverage
Borrowed funds can be used to increase investment returns; leverage occurs when a mortgage is used to reduce the amount of money an investor needs to purchase a property.
Once you have a stock position in an investment property, you can make money with that investment in two ways. First, take out a second loan with increased equity, or refinance the original loan amount plus the equity raised, freeing up funds to invest in other properties.
In Which Countries Should You Invest in Real Estate?
Below is a list of top 10 real estate investment countries with high capital appreciation opportunities.
1. Turkey
Turkey connects the two continents of Asia and Europe through the Bosphorus Strait. Turkey attracts foreign real estate investors with its strong economy and variety of real estate options. Turkey has become one of the most ideal real estate investment countries for foreigners due to the new law on obtaining Turkish citizenship through real estate investment.
Real Estate Investment in the Republic of Turkey
In 2012, the government made it easier for foreigners to invest in Turkish real estate. Since then, the number of people buying real estate in top tourist destinations has increased to take advantage of the tourism and real estate boom.
Unlike most of Europe, real estate prices in Turkey are rising every year. It was up about 14.9%. From May 2021 to May 2022, an increase of 42% in USD terms. This means that the real estate market is the safest long-term investment market.
The Republic of Turkey is an unmissable choice among real estate investment countries, where real estate prices are almost certain to rise, the demand in this industry is never-ending, and it is also affordable for foreign investors.
Already 30 million foreigners have invested in holiday homes in Turkey by 2021. Data from the Turkish Statistical Institute showed that 7,841 houses were sold to foreigners in December 2021, an increase of 77.1% compared to December 2020. Foreign investors from all over the world are flocking to Turkey to rent rental apartments with high rental income and high potential for capital growth due to booming financial and tourism industries.
According to the central bank, it is easy to understand why investors are interested in Turkey. Its economic influence is second only to China.
The country is lucrative for investors who buy high-end properties in Turkey and buy-to-let in Kalkan, Bodrum, Fethiye and Antalya, offering 6% per annum during peak rental periods interest rate.
In 2022, real estate prices in Istanbul will increase by 209.46%. In January 2022, 88,306 houses were sold in Turkey. That's 25.1 percent more than the number of homes sold in January last year. A weaker currency makes the real estate market attractive to foreigners.
Turkish laws and the rental market are favorable to its tenants. Rents can be fixed at the beginning of the contract, there are no other forms of rent control in Turkey. Tenants can set any duration. And it will be automatically extended for one year, unless the tenant notifies the landlord 15 days in advance that he will move out.
2. Uruguay
They welcome foreign investment in Uruguay. There are no restrictions on foreign ownership of land. They have the same procedures for foreigners and citizens.
Uruguay is located in South America between Brazil and Argentina; it is a peaceful environment unaffected by military conflict. Since it is a small country that can survive on its own, the collapse of the global economy has no effect on it.
3. Panama
Panama has a very important place. Its coast is close to the Caribbean Sea and the Pacific Ocean, not to mention the Panama Canal. It also connects the United States and South America, linking the two continents. This location makes Panama the wealthiest country in Latin America.
Panama is a safe country for the real estate industry. Even a global economic collapse is not a big problem for Panama.
4. Thailand
Thailand has a growing tourism industry thanks to its temples, rivers, islands and diverse ethnic groups with peaceful traditions. So investing in Thailand is a good idea.
The average monthly rent in Thailand is US$2,029, with a rental yield of 5.13%. It is recommended to invest in the apartment market as apartments are easier to follow and generate maximum profit.
5. Dominican Republic
The Dominican Republic has one of the fastest growing economies due to its construction, manufacturing and tourism activities. It has extremely low inflation.
Even after the pandemic, the travel market is still growing. Invest in it and you won't be disappointed. It is a good investment choice for both business and leisure travellers. If you want to play your cards right, you should choose Stem for Business. They tend to live in apartments rather than hotels.
6. Mexico
Both Canadians and Americans love to vacation and retire in Mexico, making Mexico a great country to invest in.
Puerto Vallarta on the Pacific Coast and Playa del Carmen on the Costa Maya are excellent choices for investing in rental properties, as they are prime locations for tourism. Mexico also offers incentives to non-resident investors.
7. Malaysia
Malaysia is a great place to live and invest. English is widely spoken, the cost of living is low, and banks operate in Western tradition. These make life easier for foreigners.
Malaysia has a tropical climate with beaches on both sides of the coast. This makes Malaysia a great place for leisure travel and a great place for investment. If you are looking for an Asian destination, the affordability of real estate compared to many other countries makes Malaysia a good choice for real estate investment.
8. Canada
As one of the largest economies in the world, Canada attracts investors. Its high standard of living makes it one of the ideal countries for investment.
Canada is a center of global trade. The air transportation system is world-class and the coastal ports have direct access to Asia, Europe and South America. The Great Lakes also provide easy access to the United States.
9. Portugal
For 8 years, Portugal has grown in importance in the real estate market. Properties in popular locations, such as some Lisbon neighbourhoods, are overpriced for investment. Investors are encouraged to look for opportunities in other areas of the city, such as the Porto area north of Lisbon. We can also recommend Portugal's Algarve coast, as these areas will stand out in the real estate market.
Portugal offers mortgage loans to non-residents, making it easier for foreigners to invest.
10. Australia
Foreign investors are interested in investing in Australia due to its vibrant economy and well-developed standard of living.
They are highly rated as they offer residents one of the highest prosperity rates. Wildlife sanctuaries and other tourism options are also some of the attractions for investors. Australia offers a wide range of real estate options from high-end to affordable.
Frequently Asked Questions
1. Why is real estate important in business?
The strength of the real estate sector has a major impact on consumer confidence and housing construction, and has socioeconomic implications.
2. Which country is the best for real estate investment?
Turkey, USA, Canada, Australia, Germany and Morocco are the best choices for real estate investment.
3. What should I invest in?
The real estate market is one of the best ways to invest for quality returns.
4. Is Turkey a good place to buy a property?
Turkey scores well for pricing, making it an excellent choice for bargain hunters or those looking for medium to long-term investments.
5. How to obtain Turkish citizenship through real estate investment?
You can become a Turkish citizen by purchasing a property in Turkey worth at least USD 400,000. Spouses and children under the age of 18 are also eligible for Turkish citizenship.
6. How important is real estate?
Real estate simply offers cash flow, tax benefits, equity accumulation, competitive risk-adjusted returns, and inflation protection.
Foreign investors are interested in investing in Australia due to its vibrant economy and well-developed standard of living.
They are highly rated as they offer residents one of the highest prosperity rates. Wildlife sanctuaries and other tourism options are also some of the attractions for investors. Australia offers a wide range of real estate options from high-end to affordable.
Top Projects for Investment:
- Project in Kağıthane with a unique forest view
- Project In Atasehir Area With Sea View
- Panoramic Sea View In Kartal
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