The Best and Worst Countries for Americans To Buy Property
Real estate is one of the oldest ways to invest and generate income, and that isn't changing any time soon. However, the real estate market has been a bit chaotic in the U.S. in the wake of the pandemic, and it has Americans searching far and wide to find the best real estate markets -- including what you might call second-tier and third-tier American markets.
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Another option, though, is to consider other countries for real estate investment. While there could be regulatory hurdles and complex tax scenarios to navigate, it might be worth considering other countries if the price is right.
For instance, some foreign countries may have rental yields much higher than the U.S., which has an average yield of 2.91% (though that varies by market). Read on for some of the best foreign countries for Americans to consider buying property, along with a few of the worst.
Best: Moldova
Rental yield: 6.64%
Rent: $432 for a one-bedroom apartment
Sandwiched between Ukraine and Romania in Eastern Europe, Moldova is an interesting case. It has some of the highest rental yields you will find anywhere, yet rents are very low. This may be explained in part by the collapse in housing values around the Great Recession in Moldova as well as the ongoing war between Russia and Ukraine just next door.
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Best: Egypt
Rental yield: 5.38%
Rent: $768 for a one-bedroom apartment
Egypt has a rental yield that is almost equally high to that of Moldova's. Unlike Moldova, though, housing prices increased 28.25% in Egypt before inflation; things there are blowing up. Prices declined in the last two quarters of 2021, however.
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Best: Jordan
Rental yield: 6.11%
Rent: $310 for a one-bedroom apartment
The typical rental yield is just over 6% in Jordan, making it yet another great place for Americans to invest. Rents are under $400, so the country is still affordable. However, its real estate market has been struggling; it had declines across the board for all types of real estate in 2019.
Best: Ghana
Rental yield: 17.31%
Rent: $1,160 for a one-bedroom apartment
Ghana maintains a high rental yield, even with the rental prices skyrocketing in the last 18-months. That being said, its high-end housing market is struggling, although Ghana's economy was bolstered by much higher GDP forecasts for 2022 and seems to be trending upwards for 2023.
Best: Montenegro
Rental yield: 5.80%
Rent: $324 for a one-bedroom apartment
Montenegro sits across the Adriatic Sea from Italy and to the north of Albania. Montenegro's rent is significantly more affordable, dropping sharply in the last year. Still, it maintains a high yield, and its housing prices increased by more than 36% in 2021.
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Best: Costa Rica
Rental yield: 3.63%
Rent: $850 for a one-bedroom apartment
Costa Rica has drawn a lot of attention in recent years due to its environmental stewardship, but it also happens to be an excellent place to invest. Rental yields are around 3.63%, and monthly rent is fairly reasonable.
Worst: Israel
Rental yield: 3.30%
Rent: $2,442 for a one-bedroom apartment
The average rent for a 3-bedroom apartment outside the city center in Israel costs about $10,932. Despite this, Israel has lower yields than the U.S. on average. Housing prices are increasing there at a modest rate of 9.21% in 2021.
Worst: Argentina
Rental yield: 5.71%
Rent: $289 for a one-bedroom apartment
Argentina is a beautiful country, and rents there are quite affordable. However, you may want to steer clear if you are looking for places to buy investment properties. The average yield is under 6.0%, and property prices have been on the decline in the last year.
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Worst: India
Rental yield: 4.44%
Rent: $303 for a one-bedroom apartment
One thing to India's credit is that rents are incredibly low there; a 3-bedroom apartment outside the city center is $850 per month. But that doesn't leave much room for rental yields, which are just below 4.5%. Plus, housing prices increased by just 1.1% in 2021.
Worst: Austria
Rental yield: 3.18%
Rent: $854 for a one-bedroom apartment
Austria has beautiful architecture and a rich history, but it isn't quite so good for real estate investors. Rents in the city are only slightly less than what you might expect, and the rental yield barely reaches above 3%. Housing prices did increase by more than 10% in 2021, however.
Worst: China
Rental yield: 1.58%
Rent: $548 for a one-bedroom apartment
China is among the worst places to buy a rental property for American investors. The typical yield is just above 1.5%, and a 3-bedroom apartment is nearly $1,300 inside the city center. Home prices did increase by nearly 10% in 2021.
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Worst: Turkey
Rental yield: 5.63%
Rent: $622 for a one-bedroom apartment
If you want a great place to buy a property as an American investor, you may want to look somewhere other than Turkey. The typical rent for a 3-bedroom apartment outside Istanbul's city center is quite affordable at $973 a month, but the yield is well below anything you might call acceptable. There is one potential upside, though: housing prices increased by more than 35% in Turkey in 2021.
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Jake Arky contributed to the reporting for this article.
This article originally appeared on GOBankingRates.com: The Best and Worst Countries for Americans To Buy Property
