It seems that landlords and aspiring property owners are turning to overseas markets more and more. And there are many reasons for that. Not only that there are many opportunities for real estate investments, but the international rental cash flow that you can generate is more than enough to cover your expenses. But the question that comes up first when thinking about buying a property overseas in 2020 is simply where to start? There are a lot of things to consider and a lot of research to do. taxes and legislations aren’t the same in different geographical areas so make sure to cover that first.
In the first part of this article, we’ll deal with the logistics of buying a property in another country and give you a few tips to help you. In the second part, we’ll suggest our picks when it comes to countries and markets to look into.
Guide to buying a property overseas in 2020
1. What is the purpose of the property
What we mean by this is what will you use the property for? Are you buying it strictly for renting, or you want to spend some time there also? Our friends from allseasonmovers.com tell us that many property owners decide to move abroad after a few years of renting a property. If that will be the case for you, you can think about what amenities you want to have close by, and how would you like to spend your social time there. All these are things you need to deal with yourself before you even start looking into properties.
2. Scout the locations
When buying a home in another country, it’s very good to know the region and area that you’re buying a place at. If you haven’t been to a location yet, think about going and spending some time there. It’s very helpful to have an understanding of how it is to be a local. Additionally, you would want to investigate the feel of the area also. It’s one thing to live in a place that boats with hustle and bustle and manage a building from halfway across the world.
This is why you need to be on the top of your game and know exactly what you’re going into before you start looking for available homes. The situation will vary from country to country, so all that experience that you have from rental investments in Florida may not be that helpful.
One more thing that you need to think about when buying a property overseas in 2020 is affordability. There are several costs that you need to consider before going ahead. Get the information about the property prices, taxes, maintenance costs, opportunities for renting. All of these are things that you have to know.
Apart from that, it’s not bad to get to know more about the area and the local real estate market. Are there any holidays or other occurrences that can affect the prices. Remember that different rental property types can be affected differently, so be sure to find a good local real estate agent.
Best places for buying a property overseas in 2020
Panama is the first place on our list and one of the best places for buying a property overseas in 2020. While it isn’t exactly overseas it boasts a stable economy and it records a steady growth. Which is always good for property investments. There are also many other opportunities for investments, agriculture being the biggest one.
When it comes to property prices you can expect to pay about $2,300 per square meter in the city and around $1,600 elsewhere. However, income tax is 2.08% so be aware of that. When it comes to rent you will collect an average of $2,200 per month, but the yield is 5.57%.
A close second would definitely be Thailand with its growing tourism industry and a strong economy. The thing with this country however is that you can only buy a condo here. It will put you back for approximately $3,700 per square meter and half that elsewhere. However, the income you can get is around $2,200 with a yield of 5.13%.
Indonesia is special because of its market. It has a plentiful population that boasts of people willing to rent. There are some challenges buying properties here, but getting a leasehold agreement is much easier. The Indonesian government announced new legislation that supposedly calls for contributions from overseas investors. So the situation should improve in the future.
Property is going for around $1,300 per square meter in the city and as low as $700 in the outskirts and other areas. You can expect to average a rental income of $2,650 a month, but subject to 20% income tax. There’s also an 8.61% rental yield that you can expect.
The United Arab Emirates
You must have heard that there are some countries that charge no rental income tax. One of them is indeed The United Arab Emirates. The average cost per square meter to buy a property in Dubai is $2,700, while outside the city limits you can expect the prices of around $2,000. Monthly rent in the Emirates usually is around $3,200 and the yield is around 5%.
All of this means that the owning a house in UAE is the proper reason for you to start investigating the 5 most well-known ways to buy a house you always wanted.
Perhaps surprisingly, the last on our list today is the country of Australia. It’s looking at some serious growth in the next future years so it’s worth checking out their investment hotspots as is the Sunshine Coast in Queensland. Most houses here are priced below $300,000 which is amazing since a rental vacancy rate is less than 3% and market growth just in 2019 was 24%.
The situation is similar all across Australia. Moreton Bay, Hobart (Tasmania), Bendigo are all places that are more than good for investing right now and there are many more. This is the reason why this country is one of the best places for buying a property overseas in 2020.
Lisa Roberts has been engaged in writing blog articles for the last 7 years. Although she started off her career in the moving industry, her experience brought diversification to the content topics she covers. Today, her range of topics spans from moving across the globe to everyday lifestyle tips, marketing, real-estate news, etc. In her spare time, Lisa enjoys running, reading books and spending time with her dogs Lue and Sill. As a great lover of life, she finds something practical and useful in every experience, which contributes to her portfolio as well.