Tuesday, March 18, 2008

International Real Estate Investment: Best Countries For Long Term Investment

Many investors are now looking overseas for real estate investment opportunities as the era of globalization grows and the problems in the U.S. continue. Choosing the country in which to invest is one of the first steps, and one of the most difficult.

Investors must first decide what their motivation for the investment is. Is it to make money, or is it a combination of money and personal enjoyment of the property.

Global Property Guide is a great online resource that helps investors evaluate international real estate investment opportunities. The site calculates average rental yields for various countries and provides information on tax policies and long-term growth prospects. Based on the different investment factors, the site rates each country on a scale of 1 to 5 stars. The following is a list of the locations which have a 5 star rating, and are listed as the best places for long term real estate investment by Global Property Guide:

1) Buenos Aires, Argentina
2) Bahamas
3) Sofia, Bulgaria
4) Cairo, Egypt
5) Hagatna, Guam
6) Bratislava, Slovakia
7) Montevideo, Uruguay

Personally, I think that it is a good list, though I don’t know that I agree with the Bahamas’ and Bulgaria’s rankings. The yields in those countries aren’t all that great, and I think that Bulgaria has a serious bubble on their hands. The website offers a great resource for aspiring international real estate investors to start their search, but it should not substitute for real due diligence.

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