When investing in real estate, smart investors know to look beyond their own backyards for the best opportunities. From sunny resort towns to up-and-coming markets, there are plenty of appealing international destinations where investing in a plot of land could pay off big.
GOBankingRates talked to real estate investors to find the countries they’d buy land in now.
High Volume Tourist Hubs in Mexico are a No-Brainer
If you want to invest in a tried-and-true locale where steady tourism virtually guarantees a reliable pool of renters, few places beat Mexico’s hottest destinations.“I usually recommend looking into Mexico, in places where tourism is high, like Playa del Carmen, Riviera Maya and Puerto Vallarta,” said Seamus Nally, CEO of TurboTenant.
Why these spots? “These areas are great to invest in with real estate because of the high levels of tourism, as you can better guarantee consistent tenants for short-term rentals,” Nally said.
With Americans in particular flocking to these Mexican cities regardless of economic conditions, the reliable cash flow makes them a smart investment play.
Costa Rica Becksons with Tropical Delights and Tax Breaks
Head a bit further south and you’ll find another tropical oasis with major investor perks.“Costa Rica is a great option to consider for investors as it’s a tropical country that attracts tourists year-round,” said
Sandy Yong, an award-winning personal finance author.
As if year-round vacationers aren’t enough of a draw, Yong said “as a foreigner, you have the same rights as the locals” when purchasing property.Even better, “Costa Rica has low property taxes which makes it even more appealing for potential investors,” she said. With natural beauty, limited red tape and tax advantages, it’s no wonder investors are flocking to this Central American paradise.
The Next Big Thing: Buying Land in Japan
While Costa Rica and Mexico are already booming — Japan is just heating up. “Japan is hot right now — property prices are up,” said Graham Hill, a real estate consultant who works extensively with foreign buyers in Japan. “The Japanese yen is ‘weak,’ which means foreigners can buy more now than in previous years.” And with exchange rates favoring the American dollar, properties are essentially at a discount.
Not only that, Hill said that Japan is a great place to live. “Japan is known as a good place to invest because the country is stable, clean and safe,” he said.
Hill has a particular soft spot for the northern island of Hokkaido. “While much of Japan is constrained by ocean [or] mountains, Hokkaido has land. And prices in Hokkaido are rising, as foreigners are buying land here,” he said.
With major cities like Sapporo offering investment potential and resort areas like Niseko drawing vacation homebuyers, Hokkaido could be the next big frontier for investors looking to buy Japanese land. “I work with exclusively foreign buyers, many of which are investors,” Hill said. “The story is most Asian buyers from outside of Japan bringing money to Japan, buying rentals for investment.”
Get Creative with Niche Investments: Vineyards, Ranches and More
Of course, savvy investors know there’s more than one way to make money from land. Some are finding success with more specialized investment plays, like vineyards and ranches.
“Internationally, Mexico and Brazil provide excellent prospects for equestrian pursuits, thanks to their expansive terrains and favorable climates,” said Cody Ullman of Ullman Group, Christie’s International Real Estate Sereno. “Meanwhile, Argentina and Italy are renowned for their wine regions, where owning a vineyard can be both a profitable and culturally enriching experience.”So for investors looking to parlay their land into businesses beyond just renting it out, parts of Latin America and Europe could be prime territories. “Investing in these areas not only promises potential financial returns but also the chance to engage in unique and rewarding land uses,” Ullman said.Originally published by
GO Banking Rates.
