You can read one of our many blogs that explain why real estate investing is an optimal way to spend money. But international real estate investing has its own advantages as well. Depending on the exchange rate, the dollar can be stretched a lot further in certain cities, allowing an investor to buy property in key markets. In addition, trips made to visit international investment properties can be tax deductible.
These are some of the best places to invest in real estate internationally based on economic growth, property prices, and foreign investor rights. The cities listed here attract a lot of tourists, meaning traditional and Airbnb investment properties could perform very well in these locations.
Related: Is real estate a good investment?
London, England
You guessed it – Brexit! With the new referendum on Britain leaving the EU, activity in the housing market is currently at a pause. Buyers and homeowners are waiting to see what the future holds before purchasing or listing properties and consequently, home prices are falling.
This creates an opportunity for foreign investors to buy cheaper property in one of the most inflated markets in the world. Foreign investments are no stranger to London, but such investments are typically luxury properties. If foreign investors now begin to take advantage of this new opportunity and invest in middle-class properties, this might encourage more homeowners to put their houses on the market. This also gives renters an opportunity to rent more affordable properties since most foreign-owned rental properties are out of reach and too expensive for the average Londoner.
Related: Brexit Effect On Investment Properties and Airbnb Occupancy Rate
Istanbul, Turkey
Istanbul’s economy is booming and more people are discovering this beautiful city for vacationing, working opportunities, and real estate investing. Istanbul’s location is ideal, because of its proximity to Europe and Asia. The population is growing, with the majority being under the age of 30.
Home prices are increasing rapidly in Turkey at the second fastest rate in the world, as of October 2015. However, apartment prices are on the lower-end compared to the U.S., starting at $100,000. In November 2015, the government announced their plans to offer residency to foreign investors from the EU such as Greece, Portugal, and Spain. This could invigorate the real estate market in Istanbul.
It’s permissible for foreign investors to buy property and land up to 10% in official area zones, but not inside military and security zones unless given clearance.
Related: Top 5 Major Cities for Buy-and-Hold Investment Properties
Panama City, Panama
Aside from the Panama Papers scandal, Panama City is known for being one of the best places to invest in real estate. The Panama Canal empowers the country and real estate market because it is an essential channel for trade. The Panama Canal brings in over half a billion dollars every year and is likely to reach over $1 billion after the expansion.
Investors from Europe, Asia, North, South, and Central America are all allured by the market. Not only are Panama’s investors diverse, but the country itself offers diverse environments – bustling cities, mountains, greenlands, and beaches.
The number of luxury apartment buildings are increasing and there are plans to continue developing more. These properties can reach over $1 million, although that is only 5% of the market listings. The majority of listings are under $500,000 and luxury apartments can be purchased starting at around $300,000 – not too shabby in comparison to beach towns in the U.S.! Panama provides another incentive to real estate investing by giving foreign investors the same property rights as locals.
Related: 5 Ways To Create A Positive Cash-Flow Income Property
Krakow and Warsaw, Poland
Poland isn’t usually known as one of the best places to invest in real estate but let’s shed some more light on that. Out of all the European countries, Poland’s economy has been the strongest in terms of GDP and not having to endure a recession since 1991. Ironically, the real estate market is still somewhat recovering from the crash in 2007, which presents opportunities for investors to buy property.
Krakow is a popular tourist city and has been able to preserve its historical charm. It is the most visited city in Poland, and could be an excellent city for Airbnb investment properties.
The capital, Warsaw, is also a booming financial center and provides higher returns. The city is filled with local and foreign professionals looking for long-term rentals.
Apartments are the only options for foreign investors because only citizens of the EU are allowed to purchase single-family homes and land in Poland. However, the demand for apartments could be high in these urban cities.
Related: Best Cities For Airbnb Occupancy Rates
It’s important to diversify your real estate investing portfolio for several reasons. Firstly, spreading out assets is somewhat protecting them in case a market crashes in one part of the world. Secondly, the best places for real estate investments on an international level tend to also be the best places for retirement or vacation homes. Hence, an international investment property can later be turned into a personal vacation home. Finally, owning international real estates paves the way to becoming established in another country. This could mean gaining a residency visa, depending on the laws, or finding new professional opportunities.
Be sure to search U.S. cities on Mashvisor for investment property data. Request international Airbnb city data by subscribing to our Professional or Expert plan. Request a demo to explore Mashvisor data.