BEST PLACES TO BUY, OWN, AND ENJOY REAL ESTATE
Panama
I recommend Panama for two things specifically—apartments for rental and agricultural opportunities.
Panama City, where resale transactions have slowed, is and will continue to be a buyer’s market through 2018. I see this year as a chance to buy on a dip, because, long-term, I remain bullish on the Panama City rentals market.
Yields continue strong though not as strong as they were a couple of years ago, primarily because rents have softened.
Argentine, Colombian, and Venezuelan buyers have helped to keep the Panama City market stable and growing over the last 10 years, even while other markets in this region struggled or even collapsed.
Today, North Americans and Europeans continue to invest, but it’s Panama’s new relationship with China that I predict will fuel this economy through its next stage of growth. If the Chinese come in volume, as they did in Vancouver in the 1990s, Panama City property prices will soar to new levels.
The second big opportunity for making money from real estate in Panama in 2018 is through productive land. This country’s interior is a fertile bread basket. Individual investors can participate in organic plantations for turnkey agro-profits.
Brazil
Brazil is a big country of many different property markets, some more interesting than others. I recommend focusing on the Fortaleza area. This coastal region is a top destination among Brazilian tourists. Rentals targeting the local holiday market can earn better than 8% net yield reliably.
I also recommend an investment in beachfront along this coast, where lot prices are a global bargain.
The Brazilian real remai
Good yields and a weak currency make this country a strong buy for 2018.
Dominican Republic
in the Dominican Republic I recommend focusing on the capital, Santo Domingo and rio san juan
The Dominican Republic is enjoying continued strong growth, as well as increasing foreign direct investment. All those business travelers coming to get in on the country’s economic boom pass through Santo Domingo… and they all need places to sleep.
Meantime, tourism figures continue to impress, as well; this country saw more than 6.5 million tourists in 2017, up from 5.9 million in 2016.
A furnished rental for either of these markets—the business traveler or the holiday-goer—can be an excellent source of cash flow and, if you buy right, should enjoy good capital appreciation.
One of the best opportunities, specifically, is to invest pre-construction in an apartment intended for the business traveler market. Businesspeople staying longer than a week prefer an apartment to a hotel.
Note that it can be possible to qualify for financing as a non-resident. I don’t recommend financing property overseas, however, unless you are sure you can cover the mortgage payment even without any income from the financed property.
Thailand
I like Thailand for agriculture primarily but think this country deserves attention for its strong economy and expanding tourism industry, as well.
The downside in Thailand is that restrictions are placed on how foreigners can own property. Foreigners are only able to own land leasehold.
A foreigner can hold freehold title to the construction on the land, but, unless your house is portable, you might not take comfort from that.
Foreigners are also permitted to own condos freehold as long as they don’t own more than 49% of the total area of the condo building.
For this reason, the condo market is where most foreign investors focus their attention. A condo is also cheaper and easier to manage as a rental than an individual property.
Portugal
Property markets in Portugal have been on the move since 2015. Some neighborhoods in Lisbon, for example, are now priced beyond what I believe makes sense for a property investment. Other areas of this city, however, continue to offer good value and opportunity, especially if you’re up for a renovation project.
In 2018, I recommend focusing on the lesser-visited areas along the country’s Algarve coast and the Porto region north of Lisbon.
Portugal is another country where it’s possible for a non-resident to get a mortgage.
Mexico
Put concerns about the drug cartels aside. Mexico remains a top destination among Canadians and Americans for both tourism and retirement and is enjoying good growth in the local tourism market as the country’s middle class continues to expand.
All that combines to make Mexico a top choice for a property rental investment.
Top markets include Puerto Vallarta on the Pacific coast and Playa del Carmen on the Riviera Maya. In both of these popular tourist towns, a rental property can generate an excellent yield.
Mexico offers financing options for non-residents, generally from U.S. lending institutions set up in Mexico specifically for that purpose.
Belize
I believe the tourism and resident expat markets on Belize’s Ambergris Caye will continue to expand through 2018 and beyond, meaning this still-undervalued Caribbean island is another good choice for a rental investment.
Elsewhere in Belize I’d focus on Cayo, where quality rental accommodation at a reasonable price is hard to come by. If you were to build a high-quality rental, you could make a good yield by pricing your property competitively relative to the local hotels that you wouldn’t let your mother-in-law stay in.
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