Here are my picks of the best cities in the world for real estate investment. Disclaimer: this is just my opinion and you should do your own research.
1. Miami, Florida, USA
Miami continues to be a top pick as a destination for both local and international tourists. The price of residential homes in the city has gone up by nearly 5% in 2018 and is expected to rise again by another 3.6% this year. The median sales price for Miami homes is $315,000 with a cost of $221 per square foot.
Investing in rental properties in this city will be profitable for you since it has a substantial population of working adults who prefer to live near their offices rather than suffer through long and hectic commutes daily. The demand for residential and commercial rental spaces will continue for an extended period, experts say
2. New York, New York, USA
Similar to San Francisco, New York City is a commercial and financial hub filled with professionals who can pay the rent because of their steady jobs. It’s also a popular tourist destination because it is home to entertainment and artistic hotspots such as Broadway and the Museum of Modern Art.
A lot of real estate experts also consider an investment in the Big Apple a low-risk venture. According to the Seattle Times, New York and its surrounding cities will benefit greatly from the construction of Amazon’s new headquarters as more and more new properties are being developed in the area. Rental structures will allow you to gain a substantial profit in this city.
3. Singapore, Singapore
After a decline in house prices, the Singaporean housing market is slowly rising nowadays due to the country’s strong economic growth and because of its status as a key international financial hub. There has been a surge of residential construction activity as the private residential property index rose by 5.41% in the first quarter of 2018. Demand also continues to increase for more rental structures.
Here are some things you should know when investing in real estate in this Southeast Asian city:
- Foreigners can buy condominium units with a freehold title. They also get the same rights as Singaporeans when purchasing non-landed property.
- You need to pay taxes, also known as Additional Buyer’s Stamp Duty (ABSD), as well as an annual one, when you buy a property. The rate is higher for foreigners than citizens and permanent residents in this aspect.
- One of the most crucial factors to consider when investing in real estate in Singapore City is the property’s proximity to its Mass Rapid Transit (MRT) system. This will make commuting easier for you because owning a car is expensive in this city.
- Singapore offers a choice between luxe neighborhoods such as Orchard Road and Marina Bay as well as apartments, townhouses, and condos such as in Wallich Residence. There’s also an option for rest houses on Sentosa Island, where several beach resorts and the Universal Studios theme park are located.
4. Manila, Philippines
Properties in the Philippines are relatively affordable. With its growth, the demand for residential and commercial structures also increased. While the country’s current volatile interest rates and pending tax proposals may put some investors off, investing in this city is sensible because of its popularity with foreigners as a tourist destination and its ever-growing economy.
5. Budapest, Hungary
The real estate market in this Central European city was down for most of 2007 to 2014. Since then, it has recovered slowly but surely in recent years. Foreigners can easily buy property that’s listed as residential but not agricultural properties. The capital continues to develop, and there’s a strong demand for investment with the real estate volume forecasted to be in the 1.6 billion to 1.7 billion EUR range or approximately 1.8 billion USD.
Demand for rental properties keeps on rising because the city is a tourist destination all year round. The country boasts beautiful bathhouses, majestic architecture, and delectable cuisine, which attract visitors of all ages from all over the world. In Budapest, you’ll be getting incredible yields and low transaction costs and enjoy laws that protect landlords.
Flexible workspaces are going to be more in demand this year. Space as a service is beginning to replace traditional offices and expanding how company operations are done. The concept may go mainstream in 2019, so capitalize on this particular trend if you can.
Real estate investments are excellent ways of generating passive income. While building an apartment or office for renting purposes may require a considerable amount of money, the profit you gain in the long run exceeds the sacrifices you make now.