Proficient and imminent real estate investors continue to diversify their investment portfolio far beyond the United States. They have successfully approached several markets overseas, and thus now real estate investments outside the US are making a larger share of domestic real estate investors’ portfolios. Why and where to invest in housing in 2017 are the two questions that many frequently inquire about. Today, we answer these questions for you. First, we explain the advantages of investing outside the United States, and then we go on to propose the four best countries where to invest in housing in 2017 outside the US.
Why Invest in Housing Outside the United States
Many believe that the great growth phase of the US economy and real estate market is now over. In fact, the trend is moving towards investing in housing outside the United States. The very first reason explaining why you should be investing in real estate abroad is land. Land is finite, and supply is limited. Because land is scarce everywhere, we expect land value to appreciate significantly and more buyers to compete for more expensive properties.
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When you invest in another country, moreover, you expect to generate a cash flow in another currency. This is great because not only will you be diversifying your investment portfolio, but you will also diversify your portfolio towards appreciating currencies. When you are looking where to invest in housing in 2017, you will come across various options to choose from. Whether you are looking for high-growth frontier markets, overseas powerhouses, or very cheap properties, you can always find a market to suit your goals.
Below, we go about listing the best four countries for residential property investment in 2017. It is very important that you thoroughly look into each and every country, may you decide to purchase outside the US. Find a country to align with your goals and needs. Read below to explore your best options.
Where to Invest in Housing in 2017? Panama
Panama, today, marks one of the top investing markets worldwide. Many foreign real estate investors are investing in Panama for a few good reasons. First, Panama enjoys a diverse and strong investment portfolio. The country is famous not only for residential real estate but for commercial real estate as well. Good news if you are looking for a house in Panama! The strong market and competition have made prices and options widely available. Second, Panama has been seeing more construction than ever over the past years. This has provided great investment opportunities while driving prices down for pre-construction property. Third, Panama uses the US dollar. This is desirable for real estate investors who don’t want to risk losing money on their investment to currency runs, or destabilization. Among some of the countries outside the US that use the dollar, Panama is the most economically prosperous and stable country among them.
Where to Invest in Housing in 2017? Brazil
The fact that Brazil is a top tourist draw has greatly influenced investors to invest there. Because the number of international visitors is increasing substantially, tourists have come to look for other alternatives to hotels. Renting a real estate property to a visitor for either a couple of days or months has, in fact, become popular and accommodating to the needs of tourists and visitors. Whether using Airbnb or other short-term rental property platforms, the rental real estate market is looking very strong.
Another reason why Brazil makes an attractive destination for real estate investors is the country’s weak currency. While the national Brazilian currency has recovered from its weakest levels in 2015, it still remains relatively weak against the US dollar today. Houses are, therefore, undervalued and cheap for foreigners. Additionally, a weak currency will attract more foreign direct investments, consequently creating more demand for housing. While Brazil may sound like a good option now, you ought to exhaust all research before you consider. Maybe plan a trip down there to get a deeper glimpse.
Where to Invest in Housing in 2017? Canada
Canada has outstandingly made it to the list of where to invest in housing in 2017, for many reasons. First, the fact that Canada is very similar to the United States has comforted US investors into investing in it. The two countries share the same language, law, and time zones. Second, Canada is one of the most prosperous countries in the world. And because it is a leader in supplying oil, food, and raw materials, Canada remains largely unaffected by economic turbulence. Real estate investors are flocking to Canada seeing it as a safe haven from potential economic and even political troubles.
The fact that the country is well developed and close to the US has, moreover, made it a destination for many residential real estate investors. Additionally, as the country covers more land than the US, more opportunities to find a house in a variety of market areas are available. Not to neglect the emergence of crowd funding platforms like Fundrise, which have facilitated and enabled investors to manage their property 100% remotely.
Where to Invest in Housing in 2017? Portugal
The OECD has listed Portugal in May 2013 as one of the top countries in the world to invest in real estate, whether residential or commercial. Portugal is desirable to many because, first, its real estate is undervalued. Property prices have plunged by up to 30% since 2010, and are only starting to recover now. Second, the real estate market is highly developed and transparent. Laws are also flexible. This has incentivized foreign real estate investors who look for properties that are cheap and amidst stable economies.
If you are looking to invest in real estate in Portugal, we recommend that you further look into Lisbon. Compared with other West European capitals, including Paris, London, and Madrid, Lisbon remains to have lower cost of living, higher property prices, and better weather. Because Lisbon is very large, the opportunities that it offers within the housing real estate are also tremendous. You can easily find a property that aligns with your budget and goals.
Whether it is Portugal, Panama, or Canada, investing in foreign housing markets today proposes big gains. Not only will a real estate investor be able to enjoy an array of options, but he/she will be accumulating more knowledge and gaining more experience and exposure. We encourage our readers and investors to start looking into our list of where to invest in housing in 2017. Our suggestions are all being hot markets today.
While you are deciding on where to invest in housing in 2017, keep reading on Mashvisor for advice on all aspects of the real estate investing business.