This article looks at some of the best countries in the world to invest in Real Estate and why each is the best.
If you want to make money investing in Real Estate around the world, this article will really help.
Ever since the dawn of time, Homo sapiens have always been involved with staking a claim on various parts of the landscape for sheltering themselves and their families.
From the early days where Neanderthals sought their homes in caves, to medieval times where castles and moats and thatched huts dotted the countryside, shelter is one of the basic needs of surviving.
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For America, it is no different.
Examples of homes include a metamorphosis from log cabins and Native American shelters on the plains of America to the modern-day homes made of bricks and wood and in some cases hemp.
The design of the structures and the materials used differ from era to era and country to country.
However, real estate and particularly homes all serve the same purpose; sheltering individuals and families from the elements.
Table of Contents
Importance of Real Estate Investment
The purchase and possession of real estate are important for many people and the overall global economy.
First of all, real estate is the bedrock and foundation of homes that are built on these assets of land.
A home is a safe place. It is the environment in which individuals and families retreat from the harsh reality of life and gather themselves together in safety.
Owning land and a home is the foundation of security. After all, a person’s home is their castle.
Secondly, owning real estate is a valuable asset to add to one’s financial portfolio, making real estate investing one of the best ways to make money in most countries of the world.
It is a possession that seldom decreases in value but because of the demand for the purchase of real estate and its being in limited availability, only adds to the increasing value.
Thirdly, there are many individuals, organizations, and institutions that are heavily invested and rely on the economic power of real estate.
Some of those entities include the real estate profession, mortgage lenders, local governments receiving property taxes for local revenue support to name a few.
For the most part, real estate, because it’s important to various governments’ economies, is a quality investment.
However, like anything else, there are certain variables that will affect the value of the real estate.
Some of those variables could include location. A piece of property located in a prime location near a popular beach area or other high profile location becomes more valuable.
Another variable could be a particular neighborhood where a certain segment of the population resides such as those classified as celebrities or in a high-income bracket.
In addition, a variable to the value of real estate could include the country in which the real estate is located.
Therefore, an interesting study would be to explore some of the very best countries in which to invest in real estate if one is so inclined.
Also See: How to Make Money on Vacation Rental Property.
11 Best Countries in the World to Invest In Real Estate
1. No Joke: Poland
In the past, Poland and its inhabitants were often the brunt of cruel jokes.
However, the real estate market is no joke and offers one of the more serious opportunities for an individual to invest.
One of the indicators that reveal that Poland is a good country in which to invest in real estate is the current growth rate that this country is experiencing.
Specifically, average house prices over the last four years have reflected a growth rate of 2.3%.
In addition to experiencing this above-average growth rate is the potential for continued growth in the real estate market.
Additionally, the most likely concern of a foreign investor is the various rules and laws that may be a variation or different from American real estate laws.
What may have been once an issue is no longer as the rules regarding real estate have been improving.
This needed change reflects a 26% increase over the last 10 years by foreign investors.
Also See: How to Make Money in Small Towns.
2. Germany
Germany is a highly industrialized nation. As such they have a vibrant economy.
Additionally, with a high Gross Domestic Product per citizen of Germany, there is a corresponding increased value of the real estate.
In fact, recent real estate values are on the rise. Last year alone the increased value of property rose by 8.1% as compared to the previous year.
Also, this does not appear to be an anomaly as the long-term value of the real estate has seen an average increase of value by 2.5%.
Added to the mix are the policies, laws that govern the real estate market, and the progressive nature of Germany which brings stability to the market.
3. Great Denmark
The country of Denmark has a robust real estate market. The strength of this market is driven by two significant factors.
The first factor is the rise in the value, on average, of homes. Specifically, Denmark has experienced an 11.7% increase in the housing market.
When the average of the last 12 to 13 years is taken into consideration there has been a positive increase in home value at a 2.8% rate.
Another factor that is significantly stimulating the market, as of this writing, is that mortgages are at 0% interest.
Certainly, an enticement for new homeowners and those looking to refinance existing mortgages.
Adding to the positive possibilities of investing in real estate in Denmark is the positive political, social and economic environment.
Rounding out the value and possibilities of a wise investment in Denmark’s real estate are the progressive laws protecting owners.
Also See: How to Become a Home Stager Anywhere in the World.
4. Rule Brittania: United Kingdom
The real estate market in the United Kingdom reflects a 4.4% increase in property value. This is an average growth that is captured over a span of 29 years.
As a strong possibility of an investment opportunity, an added dimension of low-interest rates combines for a potentially positive financial investment.
The Bank of England sets the base interest rate for the country. As of this narrative, the country’s mortgage rate is set at .1%.
Other factors to include for any financial investments include the strength of the economy.
In this case, when considering the United Kingdom, the average citizen enjoys the financial life of being in a high-income bracket.
As with the other countries listed, real estate laws and policies are conducive to the real estate market and investing.
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5. Comrade: Russia
To invest in real estate in Russian may not resonate with an investor. However, putting aside stereotypes is important due to the emergence of this country’s economy.
Specifically, a 4.4% increase in the real estate market is reflected. This rate spanning 15 years of data is an indicator of past growth and potential future growth.
Also, a uniformed individual may question the legal system of this country and the form of government.
In actuality, the laws and policies of Russia are extremely accommodating to foreign investors due to the significant lack of red tape and legal requirements.
Also See: Secrets to Renting-to-Own Your Home.
6. O Canada
To our north is the land of the maple leaf. As one of the largest countries in the world, it stands to reason that land is abundant and available.
Because of the abundance of land and a smaller population, land can be purchase fairly economically.
This is especially true in the prairie provinces of Canada.
There are local cities in the provinces of Alberta and Manitoba where land can be purchased very reasonably.
This enticement of these geographical areas and land for sale is to attract people and commerce. There are conditions attached to the purchase of this land.
Canada is experiencing modest growth in real estate value. Reporting a rate of 1.8% is not necessarily significant, but one must factor in the sale price of land in Canada which is typically low.
The real estate laws are comparable to other modern-day countries.
Added to the potential investment opportunities that purchasing land in Canada is that the income of an average Canadian household is relatively high.
7. Waltz In: Austria
Austria, the geographical location of Vienna, is a beautiful and majestic country.
It is no wonder that the housing market has seen a steady rise in value. In fact, 34 years of data reveal an average of 4.2% increase in the value of homes.
Adding to the strong investment potential of real estate investing in Austria are low mortgage rates. Recently that mortgage rate fell to 1.28%.
Austria is a very progressive country that has enacted robust legal legislation as it relates to real estate.
Also, in addition to its citizens earning income at a high level, the political environment is as stable as its rich history.
Also See: Best Money Making Books including Warren Buffett Best Recommended Books.
8. Land of the Incas: Peru
Leaving Europe, our next real estate investment opportunity takes us to South America. In particular, the country of Peru is on the cusp of exploding economically.
The real estate market is strong and is reflected in a growth rate captured over the last 12 years. That growth rate is 9.6%.
The downside of Peru’s real estate market is that the interest rate for mortgages is at 10.8%.
However, countering this high rate of interest is that the standard of living is high.
This is reflected in the average income within the household near $45,000 per year. Also, the cost of living in Peru is most reasonable.
Although the real estate laws are not as strong as other mentioned countries, Peru understands the importance of foreign investors and is making strides toward improvement.
Also See: Best Investment Plans for Earning Monthly Income.
9. Netherlands
The Netherlands, not to be confused with Peter Pan’s Neverland, is also a great country for real estate investment opportunities.
Based on the financial statistics compiled over the last 25 years, the real estate market enjoys a 4.6% growth rate.
This average growth rate coupled with low mortgage interest rates combines to make real estate a promising investment opportunity.
The strong and stable political, economic, and social climates only add to the strong investment potential.
Also See: How to Not Be Broke and Why Success is the Best Revenge.
10. Down Under: Australia
Known for the wallabies, outback, kangaroos, and koalas, Australia is also home to a thriving real estate market.
This land down under is not underperforming as it relates to the value of the land. From the years 2004 to 2021, Australia has averaged a 5% growth in its real estate market.
The current mortgage interest rate is 3.93%. Although a bit high, the average household income of $52,158 helps to bridge the gap towards affordability.
As a developed nation, Australia has in place robust legal real estate legislation. The political climate is also conducive to economic and investment growth.
11. New Zealand
A geographical neighbor of Australia is New Zealand. This land of the kiwis also reflects strong growth in the real estate market.
At a steady and average rate of 5.8%, this country is conducive to real estate investment.
As a progressive nation, New Zealand’s political climate is very stable. Also encouraging foreign investment are the strong legal and financial systems.
Of course, when stability in these areas is achieved there is corresponding stability in the economy.
Personal Story
Living in Northern California can be as exciting and tumultuous as the earthquakes that are synonymous with the state of California.
Being a first-time homeowner, and moving to an area in the northern part of California, we had an opportunity to buy a townhome.
At the time that we took out a mortgage, the real estate bubble was just on the verge of bursting. I had no clue.
Unfortunately, after inking the various documents, we saw a steady decline in the value of our home due to the overpriced market.
Fortunately, we did not panic and rode out the storm. Today the value of that home has increased from our original mortgage contract.
All that to say is, like any other investment, real estate can have an ebb and flow that seems to rise and fall based on the various consumer demands and market anomalies.
However, the important thing to remember about real estate investing is that, similar to the stock market, there may be a downturn, but for the most part real estate, because of its value and finite availability, will generally rise in value.
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Conclusion
Location, location, location is the mantra for purchasing and investing in real estate.
This brief real estate investment outlook on 11 countries is only a sampling of what may be an investment opportunity for your portfolio.
After conducting your own research perhaps you can plan your real estate flag on foreign soil.
Again, this company has paid $25+ million to members:
SurveyJunkie (only USA, Canada, Australia residents allowed). You can earn money sharing your thoughts. They have already paid $25+ million to their 20+ million members just for sharing their thoughts and opinions. Click here to join SurveyJunkie for FREE