10 Best Places To Buy Real Estate Overseas

The overseas property market is booming and this means now is a better time than ever to invest in real estate. Offshore property stands out among investment options. And, surely enough, you have to wonder about what are the best places to buy real estate overseas.

Most importantly, offshore property is a hard asset that provides diversification of asset class and likely currency. If you’re looking for an opportunity to generate cash flow while building real, long-term wealth, this might be it.

Check out more of our “Best of 2024” picks in the following categories:

• Best Places To Retire In 2024

Whether you’re contemplating a first purchase overseas or looking to expand current foreign property holdings, here’s where you should focus your attention and your capital this year.

1. Best Places To Buy Real Estate Overseas: Panama

Panama is one of the best places to buy real estate overseas. We recommend Panama for two things specifically: rental apartments and agricultural opportunities.

Panama City, where resale transactions have slowed, is and will continue to be a buyer’s market through 2024. We see this year as a chance to buy on a dip. Long term, 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 keep the Panama City market stable and growing over the last 10 years, even while other markets in the region have struggled or even collapsed.

Today, North Americans and Europeans continue to invest, but it’s Panama’s relationship with China that we 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.

Investment Opportunity In Panama

The second big opportunity for making money from real estate in Panama in 2024 is productive land. This country’s interior is a fertile bread basket. Individual investors can participate in organic plantations for turnkey agro-profits.

2. Brazil

Brazil is a big country made up of many different property markets, some more interesting than others. We 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.

We also recommend an investment on the beachfront along this coast, where lot prices are a global bargain.

Another city in Brazil where you can pick up bargain beachfront real estate is Vila Velha, otherwise known as Little Rio. Situated to the north of Rio de Janeiro, Vila Velha is a beach town surrounded by tropical forests and green-topped mountains.

Easily accessible from Rio, the trip takes just one hour by plane, with 7 to 12 flights daily. Vila Velha is not only cheaper than Rio, it’s safer and has much less traffic. Vila Velha is a town for relaxing on the beach and enjoying the outdoors. If you need culture though, Vitória is close by.

Vila Velha is great for snowbirds. The winters are warm and you have the option of generating rental income throughout the year. Vila Velha was being heavily developed until an economic crash left a lot of properties unsold. This has left plenty of bargain properties, although a quick resale may not be possible.

The Brazilian real remains stable against the U.S. dollar  and historically weak relative to the rate of 1.6 reals to the dollar of a decade ago. Click here for currency conversions at today’s exchange.

3. Dominican Republic

In the Dominican Republic, focus on the capital, Santo Domingo.

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.

Santo Domingo is more than a beautiful example of Spanish colonial architecture and history. It’s also the cultural, financial, political, commercial, and industrial center of the DR, as well as its primary port. Santo Domingo—with a population of over 4 million—is also the most populous city in the Caribbean.

The Dominican Republic is one of the first tourism success stories post-pandemic. With an increase of holiday-goers, the DR’s tourism industry is set to hit new highs.

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.

Maximize Profits With A Pre-Construction Investment

Investing pre-construction in an apartment intended for the business traveler market is one of the best available opportunities. Business people staying longer than a week prefer an apartment to a hotel.

It can be possible to qualify for financing as a non-resident of the DR. We don’t recommend financing property overseas, however, unless you’re sure you can cover the mortgage payment even without any income from the financed property.

That said, Santo Domingo city apartments rent well, and you should have no problem covering your mortgage payment from your rental income.

In the Dominican Republic, an apartment in downtown Santo Domingo—with its lucrative rental returns—averages $1,179 per meter ($110 per square foot).

4. Thailand

We like Thailand for agriculture primarily but think this country deserves attention for its strong economy and expanding tourism industry, as well.

The downside of Thailand is that foreigners are restricted in how they can own property. Foreigners can only own land leasehold in Thailand. A foreigner can hold freehold title to the construction on the land, but, unless your house is portable, you might not take comfort in that.

As a non-Thai person, you can own a condo freehold as long as foreigners don’t make up more than 49% of the ownership of units in 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.

In 2018 and 2019, pre-pandemic, Bangkok was the number-one visited city in the world, receiving more visitors than London or Paris. The tourism industry in Thailand suffered during the pandemic but is slowly recovering… This is your chance to get in on the dip in Bangkok, before it makes its comeback when all those tourists return.

5. Portugal

Property markets in Portugal have been on the move since 2015. Some neighborhoods in Lisbon, for example, are now priced beyond what we believe makes sense for property investment… Other areas of this city continue to offer good value and opportunity, especially if you’re up for a renovation project.

We recommend focusing on the lesser-visited areas along the country’s Algarve coast and the Porto region north of Lisbon.

For investors, mortgages are available to foreigners in Portugal—and rates here are averaging 4.26%. You don’t even need to live here to qualify.

Portugal is still a land of opportunity.

There’s also other advantages to life here… great weather, a low cost of living, and the ability to get by with English if you locate yourself in an expat area.

It’s also ranked among the top 10 safest countries in the world. Its health care system lists as the 12th best in the world and, as a resident, health care is free or nearly so.

You have good options for daily flights from the United States to Lisbon. From there you can connect or drive easily to anywhere else in the country. From Lisbon, Faro, and Porto, you have many direct flight options to destinations across Europe.

6. France

We’ve been sold on Paris real estate for decades. Prices go up and down, as they do everywhere, but a piece of Parisian real estate is one of the surest imaginable stores of wealth long-term.

The strength of the U.S. dollar is creating euro bargains for American buyers—another  good reason to be looking right now at both Portugal and France.

France is another country where foreigners are eligible for in-country financing. In fact, interest rates for French mortgages for foreigners are at historic lows of as little as 2.05%… with loan-to-values as high as 85%.

7. Best Places To Buy Real Estate Overseas: Mexico

Mexico remains a top destination among Canadians and Americans for both tourism and retirement. Thanks to restricted travel and an expanding middle class, Mexico is enjoying good growth in the local tourism market in 2024.

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 excellent yields.

Branded cities hold a big advantage for property investors since their public image alone goes a long way toward making the case for visiting, buying, or investing.

When it comes time for renting or resale, your life is easier if you’re in a branded city.

What’s more, the operating cost for a property in Puerto Vallarta is inexpensive, thanks to the current strength of the U.S. dollar.

It’s no longer at its peak, but it’s still strong by historic standards. Your taxes, restoration costs, furniture, and upkeep will all benefit from a strong dollar.

Mexico offers financing options for non-residents, generally from U.S. lending institutions set up in Mexico specifically for that purpose. So, that is also a big reason why they’re part of the best places to buy real estate overseas.

Also, expats go to Mazatlan to live (or stay seasonally) and usually end up in the historic district in Centro. Sometimes it’s when they first move here, and sometimes they migrate to Centro a few seasons later.

8. Best Places To Buy Real Estate Overseas: Belize

Belize is both a retirement haven as well as a great place to pick up a second home that can produce income for you before or during retirement. Located on the east coast of Central America’s Caribbean Basin, Belize is lined by hundreds of island cayes—the largest one of them is Ambergris Caye.

Ambergris Caye’s shoreline is bordered by the world’s second largest barrier reef, making the country popular as a diving and fishing destination. On the mainland you will find lush tropical rain forests and mountain ranges. You can have breakfast on the island, lunch in the jungle and be back at the beach in time for sunset.

Tourism and resident expat markets on Belize’s Ambergris Caye are set to continue to expand through 2021 and beyond. This Caribbean island is a top choice for a rental investment, making Belize one of the best places to buy real estate overseas.

On the Belize mainland, Cayo is a top option. Here 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 aren’t up to standard).

Belize has an active short-term rental market that can generate excellent yields on your investment property. One factor helping those yields is low property taxes and income taxes. Repeat visitors is another factor helping keep occupancy rates in normal times at strong levels.

Also, Belize banks grant financing to foreign investors, which is always a plus when investing in overseas properties.

9. Turkey

Turkey has the most affordable property in Europe right now—bargain prices compared to more well-known and visited destinations in the Mediterranean.

Turkey is investor-friendly, and with its affordable living, high-quality health care, favorable climate, beautiful landscapes, and rich culture, its appeal can’t be denied or ignored.

Investors who get in now are getting in on a rising tide. During 2022, house price growth was 57%, adjusted for inflation. Turkey is experiencing strong tourism growth, and the country is enjoying strong economic growth as the population increases and the middle class expands.

Turkish buyers are re-entering the market due to reduced interest rates. Both tourism rentals and student rentals are appealing rental investment options.

Also, Turkey is seen as an attractive destination for lifestyle and investment opportunities. Half of 2022’s property sales took place in the country’s most vibrant and historical city, Istanbul.

In addition to tourism growth, Istanbul and Turkey in general are enjoying strong economic growth as the population increases and the middle class expands.

One of the biggest selling points for an investment in Istanbul is the low cost of entry. A rental unit in this market is within most any investor’s budget.

10. Best Places To Buy Real Estate Overseas: Montenegro

Montenegro isn’t yet a household name. In fact, you say “Montenegro” to most people, and they draw a blank. But I predict that’s about to change. Big things are on this little country’s horizon…

Montenegro’s coast overlooks the same stretch of water as southeastern Italy. It boasts 183 miles (294 kms) of sparkling coastline that features towering mountains and stunning fjords.

Property in Montenegro is a global bargain, especially compared to its next-door neighbor, Croatia. You can buy property in Montenegro for as little as 120,000 euros. This is a great market for both seasoned and first-time overseas property investors and buyers.

Montenegro’s booming tourism industry means high occupancy rates for short-term rental properties during peak season. Under normal circumstances, it receives three times as many tourists as its population size every year.

Most property investment activity is focused on Montenegro’s coastline, and the most beautiful best-appointed stretch of it is Kotor Bay.

Found in southwestern Montenegro, Kotor Bay is a deep, craggy inlet of the Adriatic Sea. It features the best of Montenegro’s scenery…

Picture towering, sharp-peaked mountains that plunge down into crystal-clear waters. Dotted along the waterline are villages of white-washed buildings with terracotta roofs. Sleek yachts and motorboats bob gently in the bay’s calm waters.

Property prices vary around Kotor Bay… but right now, on average, things are extremely affordable. The average price per square meter is about 2,500 euros.

You can’t help but compare that to next-door neighbor Croatia, which joined the EU in 2012. In Dubrovnik, only 45 miles (72 kms) from Kotor Bay, property costs about 4,200 euros per square meter.

The spotlight, when it inevitably shines on Montenegro upon EU accession, could put Kotor Bay’s property values on par with Dubrovnik’s… or it could send them way higher.