Affordable Homes Abroad

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Post-Union, Pre-Euro Bargains

Although the U.S. dollar has been falling against the Canadian dollar, eight Canadian markets are listed among our 25 most affordable in the world, with average prices ranging from $157,630 (Charlottetown, P.E.I.) to $339,082 (Whitehorse, Yukon). Roughly 10,900 Americans relocated to Canada in 2006, according to a survey conducted by the Association for Canadian Studies. And Canadian real estate can still be a bargain. "Canada is on fire," says Gillespie, referring to the country's booming energy sector, with oil and gas companies such as EnCana (ECA) and Suncor Energy (SU), and its falling unemployment rate, which dipped to 5.9% in September.

In Europe, countries that have recently joined the European Union but are not yet on the euro currency abound with real estate bargains. Both Poland and Malta joined the EU in May, 2004. (Malta is set to convert to the euro in 2008.) Gdansk, Poland, and three Maltese markets (St. Julians, Attard, and Marsascala) count themselves among the 25 most affordable international markets, according to the Coldwell Banker survey.

Buying a home in another country is not an easy task, but there are plenty of specialists available to help you through the process. "The do-it-yourself attitude can kind of bite you," says Johnson. For instance, if you're buying a house in Paris, where the euro is rising against the U.S. dollar, and it takes six months to close, a foreign exchange specialist can help you lock in an exchange rate over that period.

Look Before You Leap

A tax attorney can tell you the specific legal and tax implications of different countries. "As this international real estate phenomenon take effect, you start to realize that in some of these countries their land and real estate laws are from the 1200s," Johnson notes.

Finding a real estate agent with expertise in the area is an absolute must, especially in affordable markets that are not always located in the most politically stable areas. Go see the house before you buy it, Johnson advises, even if it's only an investment property, and make sure it's easy to get to.

Despite the hurdles in buying homes abroad, there are good reasons international real estate has increased in popularity over the past few years. "There's the allure of going back to where your heritage is," says Gillespie. "Also, I think a lot of it is about adventure. We're just adventurous people as human beings."

And if you can find an affordable adventure, that's even better.

Click here to see most the most affordable international housing markets.

Roney is Real Estate writer for BusinessWeek.com.