The Fastest-Growing Countries for International Investors

Panama

Panama ranks 15th on the Global Property Guide index with their analysts expecting 17.68% growth in the next five years. Panama is one of the top expat investment destinations, and for good reason. Property rights are strong, the location is easy to get to, and Panama is one of the most free-market countries in Latin America.

For investors, Panama is not just a safe haven, but a haven for returns. Yields on residential property are as high as 7.3%, making them among the highest in the “safe” world. Capital gains tax rates are relatively low even if property taxes are a little aggressive.

Ghana

Ghana is one of the freest market economies in Africa, scoring even slightly higher scores than Panama on the Economic Freedom Index. In fact, We frequently look at Ghana, Rwanda, and Botswana as the three most exciting economies in Africa.

Foreign property ownership in Ghana is permitted, and real estate prices are still rather reasonable. Compared to a few African countries where $1 million gets you a worn-down mansion, Ghana real estate is available for as little as $50,000, even as a growing stream of US and European expats are entering the country to take advantage of its opportunities.

Indonesia

Although Indonesia feels like a far less developed version of Malaysia, it’s now one of Asia Pacific’s most vibrant markets and emerged as a confident middle-income country, according to the World Bank.

The big thing to consider in countries like Indonesia is that locals with any means at all tend to distrust their currency in a big way; they’d be crazy not to. While US dollar holdings are popular, Asians love investing in real estate as a safe alternative to banks and currencies they see as weak.

Cambodia

We’ve been saying for two years: “If you’re going to invest in Asian real estate, invest in Cambodia”. The reason is simple: prices are low and the potential is enormous. Global Property Guide suggests 21% capital growth in the mid-term, but this is one case where we think they may be a little conservative for the average retail investor.

Now, we don’t expect Cambodia to be a top investors’ pick forever. For now, however, you can purchase a decent-sized apartment in the city center for as little as $40,000. We came up with an aggressive “50/20/100” strategy that involved buying a property for $50,000, renovating it for $20,000, and selling it for $100,000 within the first 6-12 months.

Georgia

Georgia is one of the easiest countries in the world to do business in. We’ve gone so far as to say it could well be “the next America”. Perhaps no other post-Soviet country has done so much to reform its economy, crackdown on corruption, and open its market to foreign investment.

Foreigners can invest in any type of real estate in Georgia with the exception of property with an agricultural deed. Even in many of these cases, it is possible to purchase the property if the seller is able to re-title the property for commercial use, although property taxes will be much higher.

Paraguay

Getting a second residency and citizenship in Paraguay is known as one of the best picks. But it is also of potential interest to investors who have a small amount of money to invest in a growing if not almost enigmatic South American country.

For years, investors have talked about cheap “bolthole” properties in Paraguay, with some costing as little as $5,000 to hold on deposit while residency is completed. Today, prices have gone up, but it’s still possible to buy cheap lots and land for low prices. We were recently sent a deal to buy some land for only $11,000; it was so cheap that we almost did it just as a fun weekend project.

Colombia

Colombia is a highly underrated country considering it has the second-most free economy in South America behind Chile. Considering that Chile has started down the path of socialism, Colombia may be the best investment in the Latin world today.

Mention “investing in Colombia” to anyone where you live and chances are you’d get odd looks from people who thought you were buying up land to enter the drug business. Sadly, Colombia’s reputation still precedes it, affecting valuations.

Investing internationally is a great way to diversify your portfolio when you do so for the right reasons. Beyond the asset protection benefits that foreign real estate provides, we believe that the countries listed here will do well if you make the right investment.