@Minka Sha
You're welcome. I forgot to mention three important points I'm looking for in locations/countries in my previous answer:
I like that there is a path of progress. For example, new roads, bridges or flight routes will bring more development and tourists in the area. For example, one of my favorite places right now is Las Terrenas in the Dominican Republic. Why? Because, aside of being in the country's most beautiful area, there is a new airport with direct flights from my hometown of Montreal but also from as far as Russia and there is a new motorway from the capital Santo Domingo (and its airport) that cut the driving time by 50%. This all means rising real estate values and a constant stream of tourists/renters.
In developing countries, I like to see a rising middle class, which will underpin real estate values as well. For example, think Colombia with its growing middle class vs Ecuador.
I mentioned that I like places with mass tourism. However, I like a diversified mix of visitors for obvious reasons. For example, in Mexico, while Puerto Vallarta in Mexico is a very popular destination for international tourists, most of the tourists and real estate buyers are actually Mexicans so the impact of whatever happens in other countries is limited. In the Riviera Maya (Cancun, Playa del Carmen, Tulum, ...), the international tourists are coming from pretty much everywhere thanks to the direct flights into Cancun coming from all over the world. So, if for any reason, visitors from a given country stop to go there, the impact will be limited.
Now to your question about the financing. Financing for foreigners is available in certain countries and is not available in others. When it is available, you still; have to qualify and, also, the conditions won't be as good as they are in North America, with the exception of certain European countries. When bank financing isn't available, seller financing might be although it isn't that common. I've been using financing but I've had access to financing through my connections in places where retail buyers generally can't get it.
Mind you, we're so addicted to debt in North America that we forget that a 100% cash deal can be as good if not better. Let's assume that you buy a property in the US which just cash flows with a 30-year loan (which isn't bad considering the many places with negative cash flow nowadays). Apart from the equity buildup, you won't make any money for 30 years, after which you'll get the full cash flow on the property. Compare this with a property you buy overseas for 100% in cash and that gives you a 10% net rental yield. The first 10 years, you won't make any money aside from the equity buildup because you're paying yourself back. But after that, you'll get the full cash flow from the property 20 years before compared to the leveraged US example.
Now you might tell me that's all good and well but you could find properties in the US that have a 10% net cash flow yield. While it's increasingly difficult to find, it's not impossible but it will most likely be in an area where you won't get capital gains alongside the cash flow. By contrast you can get a 10% net rental yield overseas and capital gains in the same areas. Why? Precisely because of the paths of progress, the emerging middle class, the fast growing tourism and the unregulated nature of short-term rentals that are absent in the more mature markets.
