In today's society, international real estate stands out more than ever among investment options, as it is both a challenging asset and one of the best opportunities today to generate income while building real capital over the long term.
Whether you are considering a first purchase abroad or you are looking to expand your real estate portfolio abroad, these are the parts of the world where it would be good to focus your attention and capital at the moment
Spain
Spain is a large country with many real estate markets, some more interesting than others. We recommend that you focus on the Marbella region. This coastal region is a prime destination for Spanish tourists. Rentals targeting the local holiday market can reliably generate a net return in excess of 8%.
Portugal
Real estate markets in Portugal have been on the move since 2015. Some areas of the city of Lisbonnes have already reached excessive prices but some others continue to offer good value for money and opportunities, especially if you are ready for a renovation project.
The less visited areas of the Algarve coast and the Oporto region north of Lisbon may be places with great potential.
Portugal has recently been the subject of numerous articles characterising it as the new "European tax haven".
In particular, it is one of the countries where it is possible for a non-resident to take out a mortgage.
Panama
Panama City, where resale transactions have slowed, is and will remain a short-term buyer's market.
This year presents itself as a chance to buy on the downside, as in the long term we remain very optimistic about the rental market in Panama City .
Yields continue to be strong ... but not as strong as they were a few years ago, mainly because rents have been falling.
Buyers from Argentina, Colombia and Venezuela have contributed to the stability and growth of the Panama City market over the past 10 years, although other markets in the region have experienced difficulties or even collapsed.
Today, North Americans and Europeans continue to invest, but it is the new relationship between Panama and China that is expected to fuel this economy in its next phase of growth. If the Chinese respond, as they did in Vancouver in the 1990s, real estate prices in Panama City will soar.
The second big opportunity to make money from real estate in Panama in 2019 is productive land. The inland of this country is very fertile. Individual investors can participate in organic plantations for turnkey agri-food profits.
Dominican Republic
The Dominican Republic offers a high quality lifestyle at a low cost .
In the Dominican Republic, I recommend that you focus on the capital, Santo Domingo.
The Dominican Republic continues to experience strong growth and increased foreign direct investment. All those business travelers entering the country's economic boom are passing through Santo Domingo... and they all need places to stay.
Meanwhile, tourism figures continue to impress as well; the country welcomed more than 6.5 million tourists in 2017, up from 5.9 million in 2016. The 2018 balance sheet is in progress and already appears to exceed the 2017 figures.
A furnished rental for either of these markets, whether you are a business traveller or a holidaymaker, can be an excellent source of cash and, if you buy it right, should benefit from good capital appreciation.
One of the best opportunities, in particular, is to invest in pre-construction in an apartment for the business travel market. Businessmen staying for more than a week prefer an apartment to a hotel.
Note that it is possible to benefit from financing as a non-resident. However, it is not advisable to finance a property abroad unless you are sure that you can cover the mortgage payment even without any income from the financed property.
That said, urban apartments in Santo Domingo are well rented and you should have no difficulty covering your mortgage payment from your rental income .
Thailand
Thailand? mainly for agriculture, but it deserves attention, especially for the strength of its economy and the development of its tourism industry.
The drawback in Thailand is that there are restrictions on how foreigners can own property. Foreigners can only own leased land.
A foreigner may have full title to the construction on the land, but unless your house is portable, you may not be able to enjoy it.
Foreigners are also allowed to own freehold condominiums as long as they do not own more than 49% of the total area of the condominium.
For this reason, most foreign investors focus on the condominium market. A condo is also cheaper and easier to manage as a rental than a freehold property.
According to a survey, Bangkok was the most visited city in the world in 2017. Last year, this city received more visitors than London or Paris. Again, this deserves the attention of the potential real estate investor.
Mexico
Put aside concerns about drug cartels. Mexico remains a destination of choice for tourists and retirees among Canadians and Americans, and is experiencing good growth in the local tourism market as the country's middle class continues to expand.
All of this contributes to making Mexico an excellent choice for rental real estate investment.
Major markets include Puerto Vallarta on the Pacific coast and Playa del Carmen on the Mayan Riviera. In both of these popular tourist cities, a rental property can generate an excellent return.
Mexico offers financing options to non-residents, usually from U.S. lending institutions established specifically in Mexico for this purpose.
Belize
The tourism and expatriate markets resident in Ambergris Caye, Belize, appear to continue to grow, meaning that this still undervalued Caribbean island is another good choice for a rental investment.
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