Key Details:
- Nearly 40% of affluent Americans plan to buy a home in a foreign country over the next 12 months, according to a survey by Coldwell Banker.
- Reasons for those plans include the lower relative value of the euro, lower European interest rates, and consumer anxiety over the next presidential election.
Nearly 40% of wealthy Americans plan to buy a home in a foreign country within the next 12 months, according to a survey by Coldwell Banker.
There are multiple reasons for that. One is the value of the euro, which is lower than it has been in several years. European interest rates are also lower than U.S. rates, as Samira Easton, a certified international property specialist at Premier Sotheby’s International Realty, told House Beautiful:
“As of June 6, 2024, the European Central Bank cut its main lending rate from 4% to 3.75%.”
That may not sound like much, but when you’re borrowing large sums to put toward real estate, that downtick is significant.
Eason also shared that another reason folks are looking to invest in overseas real estate is anxiety surrounding this year’s presidential election, which has quite a few people thinking of moving abroad.
Finally, there’s the U.S. housing shortage and its impact on home prices —yet another reason more wealthy Americans are shopping for investment properties and second homes in other countries.
Besides, there are benefits to buying real estate in other countries:
- Homes are potentially cheaper compared to homes in the U.S.
- Overseas rental properties in popular tourist areas can bring in additional income
- Investing in overseas properties helps diversify your real estate portfolio
- Real estate investments in other currencies can offset currency devaluation in the U.S.
- Exposure to different cultures, climates, and lifestyles
- Exotic places to spend holidays with family and friends
- Close proximity to neighboring foreign countries
So, what are some of the best foreign markets to shop for properties, whether the goal is rental income or the perfect spot for an annual family vacation?
Surprisingly, it’s not all about Europe. Many countries offer the landscape, activities and weather that affluent home buyers are looking for. Even better, many on the list below have affordable properties to buy right now. Here are some of the top countries to consider, according to House Beautiful.
7 foreign markets to consider for investing abroad:
- Portugal
- Spain
- Turks and Caicos (Caribbean) Islands
- Costa Rica
- Mexico
- United Arab Emirates (UAE)
- Colombia
Read the full article for more details.
