Want to make smart investments in the real estate market? Are you considering investing in rental property overseas? Many property investors are exploring global markets for overseas property investments that offer high rental yields. Not only will this generate cash flow, but it will also allow you to cover your mortgage with rent payments. Essentially, you'll be getting paid to own property - a win-win situation! To help you make informed decisions, GoBankingRates has compiled a list of the best countries for overseas property purchases that offer high returns on investment (ROI). Let's take a closer look at some of these countries and the high rental yields they offer.
Top Countries for Real Estate Investment
If you're looking to secure your future by investing in the overseas market, be prepared to navigate through different financial systems. Procedures in other countries may vary from your home country, so understanding these differences is crucial. To give you a fair comparison of prices vs. rental yields, we have analyzed the cost per square meter and average rents for 2-bedroom apartments in these countries.
Indonesia
With a thriving economy and abundant natural resources, Indonesia is an excellent country for real estate investment. It offers a favorable investment climate, ensuring you won't be disappointed with your investment. Moreover, Indonesia has a profitable domestic market, making it an attractive option for property investment. As a densely populated country, there are many potential tenants willing to rent your property. Although buying property outright in Indonesia may still be challenging for foreigners, leasehold arrangements are common. The government is also considering a proposed bill to introduce overseas investments in property.
Rental Yield: 8.61% Effective Rental Income Tax: 20% Rent: $2,486 Average cost of property: $1,200 per sq.m (inside City Centre), $656 per sq.m (outside of centre)
Indonesia can be a good bet when it comes to real estate investment.
Colombia
Characterized by a desire for innovation and change, Colombia is an excellent choice for foreign property investments. Over the last few decades, its economy has grown by 3.8%, with the GDP doubling. This progress indicates the tremendous opportunities available for investors. Colombia offers a high rental yield, allowing you to generate significant profits.
Rental Yield: 6.51% Effective Rental Income Tax: 24.75% Rent: $1,548 Per square meter cost of an apartment: $1,400 (inside City Centre),$1,100 (outside of centre)
The Colombian property market is becoming sought after for property investments.
Philippines
Consider buying property in the Philippines if you're planning to invest across the world. With a growing number of foreigners in the country, the value of properties is expected to escalate in the future, offering you substantial returns on your investment. Additionally, there is a massive housing backlog in the Philippines, with more than 20 million Filipinos looking for rental properties. The increase in middle-class buyers has also led to a higher supply of houses in this bracket. The Philippines levies lower taxes on properties compared to Indonesia and Colombia, resulting in a higher ROI.
Rental yield: 6.13% Effective rental income tax: 4.06% Monthly rent: $2,422 Per square meter cost of an apartment: $1,800 (inside City Centre), $1,000 (outside of centre)
The Philippines is a good choice for overseas property investments.
Panama
Panama is another top country for real estate investment. With the influx of buyers from Venezuela, Colombia, and Argentina, its property market has become stable. Compared to other real estate markets in the region, Panama is constantly making progress. Additionally, Panama has fertile land, allowing you to participate in agricultural projects and earn money.
Rental yield: 5.75% Effective rental income tax: 2.08% Monthly rent: $2,075 Per square meter cost of an apartment: $2,200 (inside City Centre), $1,500 (outside of centre)
Invest in these countries to secure a good future.
These are just a few examples of the top countries for real estate investment. However, many people also invest in the USA and the UK. The UK offers a 4.31% rental yield, while the USA can provide a 4.69% yield. Consider your investment budget and explore properties around the world that you can buy within your budget.
If you're ready to make a million-dollar investment, check out the properties worldwide that you can acquire with $1M.
Investing in overseas property can be a lucrative venture, providing stability and financial growth. Research extensively, consult experts, and choose the country that aligns with your investment goals. Happy investing!
