Buying a rental property is a wise way to earn passive income.
As a landlord, you’re getting paid to own something, rather than paying to own it. The mortgage is often covered by rental income from tenants, and if you play your cards right you’ll profit after covering insurance, taxes, and maintenance costs.
But while some American real estate investors prefer to keep their portfolio local, others may want to take their business international.
For its latest study, GOBankingRates found the best countries to buy investment property based on the potential return on investment. GOBankingRates turned to Global Property Guide to source the following three data points for more than two dozen countries:
- Average monthly rent for a 1,292 square-foot home.
- R ental income tax rate, assuming a monthly rental income of $1,500.
- Average rental yield, or the amount that a landlord can expect as return on an investment before taxes, maintenance fees, and other costs (expressed as a percentage).
Each metric was assigned a score, and the three scores were then combined for each country to form an overall score, which determined the final ranking. The higher the score, the higher the potential income for property owners.
The final list is dominated by several European and South American countries. Remember that before you decide to buy property in a foreign country, it’s important to understand the laws and tax codes that go along with it. Or better yet, consult a professional.
Below, find out the best countries to buy rental property and make money as a landlord.