Economic Growth & Stability
Economic growth is the single most important factor influencing a country’s quality of life. In real estate, market growth refers to the increase in the size of a real estate market over a specific period. This growth can be measured in terms of transactional revenue (sales), volume (number of units sold), or market share. Market growth is an indicator of the attractiveness and potential profitability of a real estate market.
Economic stability is the absence of excessive fluctuations in the macroeconomy. An economy with fairly constant output growth and low and stable inflation would be considered economically stable.
Governance & Political Stability
Political stability refers to the ability of a government to maintain law and order, protect property rights, and provide a consistent and reliable governing framework. In politically stable regions, property values tend to be more resilient, and investor confidence is higher.
Return on Investment (ROI)
Return on investment (ROI) measures how much money, or profit, is made on an investment as a percentage of the cost of that investment.
To calculate the percentage ROI for a cash purchase, take the net profit or net gain on the investment and divide it by the original cost.
Tourism & Safety
The tourism industry is a significant driver of global economic growth, and understanding which destination holds the title of the most visited country in the world provides valuable insights.
Tourism goes hand-in-hand with the safety of its citizens and residents. The lower the crime rate in a city, the higher the demand for tourist attractions and activities.
Taxes
Taxes are one of life’s certainties, but buying a property abroad means you may have to pay twice. Many countries sometimes require citizens to pay income taxes even when living abroad and paying taxes to another country.
You may also face capital gains taxes if your property becomes more valuable than when you bought it.
In addition, some countries tax rental income earned from buying properties overseas.