In the U.S., cheap mortgages, remote workers taking city cash to other locations and a post-pandemic desire for more space is fuelling a housing boom. U.S. home prices have been rising for a while and really jumped in April 2021, with quite dramatic increases in many suburban and rural areas.
As the price of housing goes up, buyers in search of more spacious homes are involved in bidding wars in many states. Those who want to buy a home are likely to need to make more than an average salary to afford their monthly payments. This is why some Americans are choosing to invest in properties in other countries where property prices are lower than in North America.
Buying where foreign ownership is permitted
One consideration when Americans buy property abroad is whether foreign ownership is permitted and how easy it is to buy a property.
A favorite location is Costa Rica because Americans can buy properties there even if they aren’t citizens or residents. The government encourages foreign ownership of property and has a series of tax breaks and incentives for overseas real estate investors.
It is important to do due diligence when choosing an estate agency to work with in Costa Rica. Blue Water Properties of Costa Rica is a licensed real estate and vacation rental management agency. They offer a wide variety of choices when it comes to Costa Rica real estate, working mainly in the Guanacaste region, which is known as the “Gold Coast.”
A buyer’s market
Americans look for countries with a buyer’s market. They also want to purchase property in an established market with a robust economy where prices keep going up steadily and offer solid gains. In places where tourism keeps growing, visitors often convert to investors and buyers.
If Americans can buy a property for a reasonable price in an attractive location, they can even benefit from renting it out. Popular tourist locations such as Portugal, Costa Rica, Mexico and Ecuador give them the opportunity to benefit from the demand for accommodation by tourists. A reputable estate agency can also assist with vacation rentals.
A simple and transparent purchase process
Americans looking for properties abroad don’t want to go through a lengthy and complex purchase process. They choose to invest in countries where if they do their homework and use qualified, trustworthy estate agents, they should not have any trouble when purchasing property. Reputable estate agents who have the local expertise and are bilingual can facilitate the buying process.
An attractive affordable location
Americans want to purchase property in attractive locations where prices are relatively low, property taxes aren’t too high and the cost of living is low. They don’t want to buy in unstable countries where they may not be safe or there may be too much crime.
Baby boomers, in particular, are looking for places to retire in and there is room for developing real estate to suit this market or for purchasing and long-term lease of real estate to this market. Baby boomers present a strong resale demand for others who buy, improve a property and resell to release accrued gains.
Property management services
Investors who want to buy property abroad may wonder how they will manage it if they don’t intend to live in it. Reputable property management services in the location can help them with the property once they have purchased it and they need to be absent landlords. Property management services can help to streamline the whole process of having an investment in a foreign country and gaining the most investment value out of it.