No asset in the world builds wealth more predictably than real estate. Investors from around the world pour millions into property every year expecting to see returns that will outpace traditional investments like mutual funds.
If you've saved up money and are thinking of putting it into a rental property, congratulations on undertaking the journey of becoming a landlord.
To help you down your path, our team has compiled a list of what we feel are the best countries to invest in abroad. This list of suggestions will help you find well-priced rental properties that will produce fantastic yields!
You'll find that several of the countries on our list are in Southeast Asia (SEA). That's because SEA tends to have low tax rates and growing average rental prices.
In the case of the Philippines, you'll be able to enjoy a variety of potential tenants that have high-paying jobs in developing cities like Manila. You'll also be able to tap into the tourist market since thousands of people flock to Philippine islands like Palawan annually.
2. Costa Rica
Costa Rica has long been a vacation destination for United States citizens. Sandwiched between Nicaragua and Panama, the country features wonderful biodiversity in the way of volcanoes, beaches, and lush forests.
While Costa Rica is still in the early stages of becoming industrialized, there is plenty of opportunity in this country to cash in on the growing tourist market.
That, combined with the country's exceptionally low rental tax rate, makes investing worth looking into.
Indonesia is an island country situated in the southernmost region of SEA. The country boasts beautiful beaches and breathtaking temples that attract tourists from all over the world.
Like much of SEA, Indonesia is a country that's becoming rapidly industrialized, bringing more high-paid professionals to the area. Consequently, rental rates are on the rise.
You'll find that Indonesia's rental income tax rate is high in comparison to the rest of the region. With that said, its rent rates are also disproportionately high, which protects the country's yield for investors. As a bonus, Indonesia is very close to Australia, which is another great area to buy a house and land in.
Thailand's capital city, Bangkok, is often thought of as the capital of all of Southeast Asia. Owning rental properties in Bangkok will net investors returns thanks to the steady stream of local and international business people that settle in the city.
Even as you head outside of Bangkok, there is ample opportunity to purchase real estate in growing areas like Krabi, Koh Phi Phi, and Chang Mai.
Those opportunities, combined with Thailand's high rents and low taxes, make this SEA gem a clear pick when it comes to the best countries to invest in.
Owning property in France is a dream that romantics all over the world share. Does that dream pan out in the way of being a lucrative investment opportunity though?
As it turns out, it does!
France boasts some of the highest rental rates in the world. While its taxes are also relatively high, rents offset what you'll owe the government, making this country a relatively attractive investment vehicle.
Don't let Germany's low cost of living fool you. Investors can still make a good return by purchasing and renting property in this country's borders.
Many of Germany's most popular cities (Munich, Berlin, Frankfurt) are magnets for young professions from all across the world. These cities also make for fabulous summer tourist getaways, which help further bolster rent rates.
As a bonus, you'll find that Germany has some of the lowest rental income tax rates in Europe!
If you had asked us ten years ago if Hungary was among the best countries to invest in, we would have had a hard time giving you a clear recommendation. Today though, thanks to cities like Budapest drawing in professionals and tourists, this country is a definite buy.
Some investors may not like Hungary's low average rent. To that, we say patience is a virtue since rental rates are climbing rapidly in the country.
Hungary does have a relatively high rental income tax rate, but the low cost of purchasing property in many of the country's best cities keeps investor's yields in good shape.
Spain rounds out our list of the best countries to invest in when it comes to buying rental properties. We probably don't have to tell you how relevant Spain has been to the world.
World-class artists, wine, food and more all call this country home.
Spain's reputation as a world influencer has done wonders for driving tourists and expats into many of its main cities (Madrid, Barcelona), which is great news for property owners.
The big caveat with Spain is that its rental income tax rate is exceptionally high at 24%. Still, with decent rental rates, investors can turn a profit.
Now That You Know the Best Countries to Invest in, Start Doing Your Due Diligence
Any of the best countries to invest in that we mentioned above could revolutionize your finances if you buy the right rental property. To find the perfect opportunity for your needs, do your due diligence to find out how much you're likely to get as an annual return and if that return outpaces what you could generate from more turn-key investment strategies.
If you're hungry for additional information on all things real estate, continue browsing the content in our blog!