Real House Prices Across The World
In October, the International Monetary Fund (IMF) released its quarterly update on the latest trends in the housing market across the globe. Titled “Global Housing Watch”, the report elaborates on the IMF’s Global House Price Index. This index tracks the average real house prices across 50 countries. After a steep decline during the Great Recession, the index has remained more or less constant over the past couple of years. This means that if you’re looking to invest in real estate overseas, now might be a good time.
The Lands of Milk and Honey – The Top Countries to Invest in Real Estate
If you’re keen on investing in property overseas, here’s a list of countries you should consider before making your choice.
- Singapore: Many people consider Singapore the gateway to the Asian continent. This erstwhile British colony is fast becoming one of the leading financial centres in the world after New York, London and Tokyo.
Any investment in Singapore’s real estate market will typically be expensive. Therefore, only the wealthy and exceedingly well-to-do investors will consider investing here. However, because of its safe-haven status for wealth in Asia, investors will continue to keep the investments pouring into this island nation.
- Canada: Canada has a lot in common with the US – from its law to its time zones. As a leading supplier of oil and raw materials, it doesn’t experience the economic ups and downs that afflict the US and many European countries.
As is the case in Singapore, investments in Canada can be quite expensive – especially in the high-priced metropolitan areas of Toronto and Vancouver. However, Canada’s proximity to the US and its reputation as a well-developed country continue to attract investors.
- Australia: Australia is not as close to the US as Canada is. However, it shares many similarities with Canada in terms of language, laws and customs. From urban locations to rural areas, you could easily find the property of your choice.
Traveling to Australia is not as easy as travelling to Canada is. Therefore, factor in the distances when you invest in this country. Also, be mindful that Australia lies in the southern hemisphere. As a result, the seasons will be the exact opposite of what they are in the northern hemisphere.
- Malaysia: Malaysia shares many unique advantages that Singapore has. Geographically, both countries are located on the same peninsula. Both countries are dotted by beaches, offer a tropical climate and follow Western banking practices.
However, Malaysia beats Singapore in terms of its real estate prices. If you’re looking for a more affordable investment alternative to Singapore, invest in Malaysia.
- Costa Rica: Many American retirees have been heading to Costa Rica for its tropical climate and low cost of living. Non-citizens can purchase property in Costa Rica. In addition, they can enjoy the same constitutional rights given to local citizens.
If you want a property in a place that experiences pleasant and equable weather, invest in Costa Rica. Your investment will be safe in this stable country with a growing economy.
- Mexico: If you’re fluent in Spanish, consider investing across the border in Mexico. This bicoastal nation provides many opportunities for real estate investment, including many beachfront areas.
To purchase property in Mexico, you will need to go through a real estate trust (or fideicomiso) established via a Mexican bank. This trust remains the legal owner of the property, while you (as the beneficiary) have complete ownership of the property.
- Uruguay: Many people view this stable country as the international banking hub of South America. The country places no restrictions on foreign ownership of land. It does not have any exchange controls or currency restrictions either.
If you’re keen on purchasing productive farmland, invest in Uruguay. It could be a haven to relish during your retirement years.
- Panama: This country offers some of the most strategically located real estate in the world. This is because it lies between two major oceans and two major continents. The fact that it has the Panama Canal too, enhances its appeal further.
Many American retirees flock to Panama because it is the richest country in Latin America based on its per capita income. If you’re looking for a safe investment that offers a relatively low cost of living, consider investing in Panama.
Before you invest, however, remember that each country presents unique benefits and challenges. Therefore, do the due diligence before investing in the country of your choice.
