Buying property abroad isn’t always about finding somewhere to live.
For some people, it’s an investment, a second home, a way to generate rental income or a combination of several things.
The important thing is to understand what you’re actually trying to achieve before deciding which market or property is right for you.
Here I look at property investment opportunities, rental potential, locations and the factors I consider when assessing an overseas property market.
Table of Contents
What Makes a Property Investment Worth Considering?
There isn’t a single measure that tells you whether a property is a good investment.
I’d look at several factors together.
Location
Location is one of the biggest factors affecting both demand and potential resale value.
A property can look attractive on paper, but the neighbourhood it’s in may ultimately determine how easy it is to rent or sell. My tip is to speak to local people in the area or people who own property there before making a decision to buy.
Property Prices
Understanding the local market is essential.
You need to know what comparable properties cost and whether you’re paying a reasonable price for what you’re buying.
Rental Potential
If your plan involves renting the property, think about who your potential tenants are and what they actually want.
A property that works well for a holiday rental may be very different from one suited to long-term tenants.
Ongoing Costs
Rental income isn’t the same as profit.
Maintenance, management, taxes, utilities, renovation and other expenses all need to be considered when working out the potential return.
The Wider Market
I also think it’s important to understand what’s happening in the wider property market.
Supply, demand, new developments, infrastructure and changes in the local economy can all influence a property’s prospects. Speak to a real estate agent to find out what new property projects are planned nearby or what changes in infrastructure they expect to see in the near future.
Property Investment Opportunities
I’ve written about investment opportunities in several of the destinations I cover.
🇨🇴 Medellín
These articles look at the reasons investors consider Medellín and which areas are worth investigating.
🇪🇨 Cuenca
🇲🇪 Montenegro
Montenegro is particularly important to me because this isn’t simply a market I’ve researched from a distance.
I bought a property there in 2024, completed the renovation in 2025 and have been renting it out since spring 2025.
That experience has given me a much better understanding of what is involved beyond simply buying the property.
I’ll be sharing more of the practical lessons from that experience as the site develops.
Living There or Investing There?
One of the most important questions is whether you’re buying a property because you want to live there or because you want it to work as an investment.
Sometimes those objectives overlap.
Sometimes they don’t.
The property I’d choose for my own retirement may not be the property I’d choose purely for rental income.
That’s why I think it’s useful to consider the lifestyle, property market and investment case separately before bringing them together.
Do Your Numbers
Before buying an overseas investment property, work out the numbers rather than relying on a headline rental yield or someone’s estimate of future price growth.
Consider:
- Purchase price
- Taxes and buying costs
- Renovation
- Furnishing
- Property management
- Maintenance
- Insurance
- Vacancy
- Rental income
- Currency movements
- Potential resale costs
I’ve also created a free International Property Budget Planner to help you work through the numbers before making a purchase.
Invest Carefully
I don’t believe every overseas property market is a good investment, and I wouldn’t buy a property simply because someone tells me that prices are going up.
Research the market, understand the numbers and spend time in the area.
And if possible, speak to people who actually live there and professionals who work in the local market.
The aim of this section is to give you practical information to help you do exactly that.