BAKU, Azerbaijan, Feb. 14. By Rufiz Hafizoglu – Trend: Azerbaijani citizens purchased 99 real estate properties in Turkey in January 2020, which is 4 properties

Which is the best country to do property investment?

Here’s a list of good international cities and U.S. cities. Of course, it’s good to do additional research given that there’s a lot going on everywhere in the world 🙂

You can read one of our many blogs that explains why real estate investing is an optimal way to spend money. But international real estate investing has its own advantages as well. Depending on the exchange rate, the dollar can be stretched a lot further in certain cities, allowing an investor to buy property in key markets. In addition, trips made to visit international investment properties can be tax deductible.

These are some of the best places to invest in real estate internationally based on economic growth, property prices, and foreign investor rights. The cities listed here attract a lot of tourists, meaning traditional and Airbnb investment properties could perform very well in these locations.

Related: Is real estate a good investment?

London, England

You guessed it – Brexit! With the new referendum on Britain leaving the EU, activity in the housing market is currently at a pause. Buyers and homeowners are waiting to see what the future holds before purchasing or listing properties and consequently, home prices are falling.

This creates an opportunity for foreign investors to buy cheaper property in one of the most inflated markets in the world. Foreign investments are no stranger to London, but such investments are typically luxury properties. If foreign investors now begin to take advantage of this new opportunity and invest in middle-class properties, this might encourage more homeowners to put their houses on the market. This also gives renters an opportunity to rent more affordable properties since most foreign-owned rental properties are out of reach and too expensive for the average Londoner.

Related: Brexit Effect On Investment Properties and Airbnb Occupancy Rate

Istanbul, Turkey

Istanbul’s economy is booming and more people are discovering this beautiful city for vacationing, working opportunities, and real estate investing. Istanbul’s location is ideal, because of its proximity to Europe and Asia. The population is growing, with the majority being under the age of 30.

Home prices are increasing rapidly in Turkey at the second fastest rate in the world, as of October 2015. However, apartment prices are on the lower-end compared to the U.S., starting at $100,000. In November 2015, the government announced their plans to offer residency to foreign investors from the EU such as Greece, Portugal, and Spain. This could invigorate the real estate market in Istanbul.

It’s permissible for foreign investors to buy property and land up to 10% in official area zones, but not inside military and security zones unless given clearance.

Related: Top 5 Major Cities for Buy-and-Hold Investment Properties

Panama City, Panama

Aside from the Panama Papers scandal, Panama City is known for being one of the best places to invest in real estate. The Panama Canal empowers the country and real estate market because it is an essential channel for trade. The Panama Canal brings in over half a billion dollars every year and is likely to reach over $1 billion after the expansion.

Investors from Europe, Asia, North, South, and Central America are all allured by the market. Not only are Panama’s investors diverse, but the country itself offers diverse environments – bustling cities, mountains, greenlands, and beaches.

The number of luxury apartment buildings are increasing and there are plans to continue developing more. These properties can reach over $1 million, although that is only 5% of the market listings. The majority of listings are under $500,000 and luxury apartments can be purchased starting at around $300,000 – not too shabby in comparison to beach towns in the U.S.! Panama provides another incentive to real estate investing by giving foreign investors the same property rights as locals.

Related: 5 Ways To Create A Positive Cash-Flow Income Property

Krakow and Warsaw, Poland

Poland isn’t usually known as one of the best places to invest in real estate but let’s shed some more light on that. Out of all the European countries, Poland’s economy has been the strongest in terms of GDP and not having to endure a recession since 1991. Ironically, the real estate market is still somewhat recovering from the crash in 2007, which presents opportunities for investors to buy property.

Krakow is a popular tourist city and has been able to preserve its historical charm. It is the most visited city in Poland, and could be an excellent city for Airbnb investment properties.

The capital, Warsaw, is also a booming financial center and provides higher returns. The city is filled with local and foreign professionals looking for long-term rentals.

Apartments are the only options for foreign investors because only citizens of the EU are allowed to purchase single-family homes and land in Poland. However, the demand for apartments could be high in these urban cities.

Related: Best Cities For Airbnb Occupancy Rates

It’s important to diversify your real estate investing portfolio for several reasons. Firstly, spreading out assets is somewhat protecting them in case a market crashes in one part of the world. Secondly, the best places for real estate investments on an international level tend to also be the best places for retirement or vacation homes. Hence, an international investment property can later be turned into a personal vacation home. Finally, owning international real estates paves the way to becoming established in another country. This could mean gaining a residency visa, depending on the laws, or finding new professional opportunities.

Be sure to search U.S. cities on Mashvisor for investment property data. Request international Airbnb city data by subscribing to our Professional or Expert plan. Request a demo to explore Mashvisor data.

Source: Best Places to Invest in Real Estate: Going International

It’s well-known having an investment property in a big, expensive city is quite a challenge (sometimes impossible) due to high home prices and the inability to follow the one percent rule. But our team decided to dig a little deeper into some of the country’s major cities and calculate their cash on cash returns. We found taking the leap in the big cities can definitely pay off – both with traditional and Airbnb investments.

We analyzed over 20 major U.S. cities’ average cash on cash returns and then selected the top cities and neighborhood with the highest returns based on number of listed properties and some other statistics.

1. Atlanta

Atlanta is headquarters for some of the most well-known companies making it a great job market and attractive to money-making tenants. Some companies include AT&T, Coca-Cola, Delta Airlines, and UPS. The job market is diverse and is one of top business cities. Atlanta has one of the largest populations of college graduates and is being flocked by fresh graduates looking for jobs and housing. Besides the many job opportunities, Atlanta has a unique culture – a mix of of Southern charm, history, and urbanity. Tourists enjoy festivals, street-art, diverse food, and of course,the Atlanta Falcons.

Buying an income property in Atlanta could be a dream for investors with the low home prices and highly educated, employed tenants. It’s one of the most visited cities in America, making it an even better Airbnb investment, based on cash flow. In 2015, investors made 16.5% returns in 2015 from a mix of cash flow and appreciation.

City Average Traditional CoC Return: 6.58%

City Average Airbnb CoC Return: 10.04%

Top Neighborhood: Lindridge – Martin Manor

Neighborhood Average Traditional CoC Return: 12.08%

Neighborhood Average Airbnb CoC Return: 17.73%

Related: How To Live For Free in the Most Expensive City in America

2. Saint Louis

St. Louis is also home to several big companies including Enterprise Rent-A-Car and Express Scripts. In 2015, St. Louis was listed as a one of the top 10 cities for creating a startup company based on capital, affordability, early-stage success, and community.

St. Louis has one of the best markets for property tax at a low 0.43%. Homes are fairly well-priced and the housing market is stable. The stability is due to its manufacturing, trade, transportation, and tourism industries. Investors here can expect to appreciate well. If you’re considering St. Louis, act now because the market is picking up. Homes are being sold, there is less competition amongst sellers, buyers and sellers are motivated, and closings are doing well. Right now, it’s a buyer’s market.

City Average Traditional CoC Return: 4.28%

City Average Airbnb CoC Return: 14.33%

Top Neighborhood: Old North St. Louis

Neighborhood Average Traditional Coc Return: 17.41%

Neighborhood Average Airbnb CoC Return: 28.22%

3. Las Vegas

Las Vegas has certainly become a real estate icon in recent years, for several reasons. Firstly, properties are “cheap.” The median home price is $203,000 which is less than the national average by $14,000. Las Vegas went through a three-year period in which appreciation levels skyrocketed, paving pathways to success for investors. In 2013, homes were appreciating at 65.4% while they are currently at 11.6%.

The market in Vegas has been stable in the past five years, and local and international investors have been taking advantage of the buy-and-hold market. While home prices are on the lower side, rent is high – which is why Vegas is considered a place to buy and not to rent. The high rental rates could be the underlying reason to why short-term renting on Airbnb has been very lucrative for Airbnb investment properties in Vegas. The unemployment rate is above the national average at at 7.1%. This may not bring the best long-term tenants but could perform well through Airbnb.

City Average Traditional CoC Return: 3.53%

City Average Airbnb CoC Return: 11.97%

Top Neighborhood: Downtown

Neighborhood Average Traditional CoC Return: 8.91%

Neighborhood Average Airbnb CoC Return: 17.13%

Related: 6 Reasons For The Growth Of The Airbnb Investment Property

4. Charlotte

In late 2015, Home Union completed a study revealing the top 10 investment markets for single-family rentals. Charlotte, aka,“Queen City” was listed as #1 because of the job market growth. Of the 10 cities in the study, Charlotte came in third for best job-growth rate out of the top 55 metropolitan statistical areas. The city also ranked #21 in investment home price and #27 in gross rental yield.

Charlotte is also a major financial city. The major industries are financial services, motorsports, and energy. You might be surprised to know that Charlotte is now the second largest banking center in the U.S. after New York City. Forbes listed Charlotte as #14 for on its 2015 list for Best Places for Business and Careers.

Home prices are relatively low and Charlotte alone has over eight colleges and universities – making it easy to find tenants.

City Average Traditional CoC Return: 2.95%

City Average Airbnb CoC Return: 8.87%

Top Neighborhood: Revolution Park

Neighborhood Average Traditional CoC Return: 9.74%

Neighborhood Average Airbnb CoC Return: 47.44%

5. Washington, D.C.

Half a million dollars might can buy a nice one-bedroom apartment in D.C. or you could rent it for $2,500/month. Why would anyone want to invest here with these home prices and high rental rates? Well, high rental rates can mean big returns for investors. In the D.C .and Northern Virginia area, there are over a dozen colleges and universities with students digging for off-campus housing. A furnished bedroom in D.C. can rent out for $900 or $1,000 per month!

So in this case, the home prices here aren’t as ridiculous as San Francisco or New York City but the rental rates are significant. It’s also a touristy city which means an optimal location for an Airbnb investment property. The top neighborhood listed here gives investors the opportunities to buy low and appreciate well, unlike other neighborhoods in D.C.

Investing in D.C. takes extra creativity and research. Investors who bought properties in 2009 did well but the opportunities are a bit harder to find these days, but are still out there.

City Average Traditional CoC Return: 2.81%

City Average Airbnb CoC Return: 4.33%

Top Neighborhood: Skyland

Neighborhood Average Traditional CoC Return: 14.52%

Neighborhood Average Airbnb CoC Return: 38.36%

Related: Real Estate Investing Beyond the 20 Mile Radius

Mashvisor provides analytics for any city you inquire about when on your property search. If you can’t find your city on our website, you can request data by emailing advisor@mashvisor.com. We’ll help you find the highest performing neighborhoods, properties, and optimal rental strategy based on the comparative and predictive data in your area.

Source: Top 5 Major Cities for Buy-and-Hold Investment Properties

Thank you all for the A2A! 🙂