Let’s be realistic—if you have no job and no savings, real estate investment is not an option. There’s no magic shortcut. If you don’t have at least $20K saved up and a stable net income of at least $1,000 per month, your first priority should be increasing your income before considering real estate.
That said, if you meet these financial requirements, there are ways to enter the property market—even with a limited budget. This guide breaks down where and how you can buy property with just $20K, top rental yield markets, and the best financing strategies to maximize your investment.
Step 1: Understanding the Minimum Requirements
Before diving into investment locations, let’s establish the key criteria:
✔️ Minimum savings: $20,000 (for down payment, legal fees, and initial costs)
✔️ Stable income: At least $1,000 per month (to support installment plans or mortgages)
✔️ Target property price: $40K–$100K (Your savings and income determine your affordability)
✔️ Ease of foreign ownership: Countries with clear property laws for foreigners
✔️ Strategic location: Areas with tourism, expat demand, or strong rental potential
✔️ Flexible payment terms: Ability to pay in installments instead of upfront lump sums
Step 2: How to Invest in Real Estate with a Small Budget (Just $20K)
Most people assume they need full cash upfront to invest in real estate. I used to think the same until I started investing full-time. That’s when I discovered an alternative—flexible installment plans on off-plan projects. This strategy has helped me leverage my capital and acquire four more apartments across the globe in 2024, with just $15K–$20K down payments on each property.
By using these installment plans, I was able to spread out my payments over several years instead of paying a lump sum upfront. This approach allows investors with limited capital to enter the market without waiting years to save a full property price.
Example: Buying a $50K Apartment in Kenya
- Total property price: $50,000
- Down payment (20%) = $10,000
- Remaining amount: $40,000
- Payment period: 3 years (36 months)
- Monthly payment: $40,000 ÷ 36 = $1,111.11 per month
You can opt for a higher down payment (30%, 40%, or even 100%) based on your comfort level. Generally, the more you pay upfront, the higher the discount you may receive. However, this also increases your risk in case of project delays or cancellations.
🔹 Pro Tip: Paying quarterly instead of monthly can help reduce transaction fees, and I highly recommend using Wise over traditional banks, as it offers significantly lower fees, fair exchange rates, and fast transfers.
Step 3: Choosing the Right Type of Property
Your budget will determine whether you buy a finished unit or an off-plan project.
Buying Finished or Nearly Completed Properties (Best if you have $50K+ saved)
✔️ Pros: Immediate rental income, lower risk of delays
❌ Cons: Higher upfront costs, might need renovations
Buying Off-Plan Projects (Best for $20K budgets)
✔️ Pros: Lower prices, flexible payment plans
❌ Cons: Delays, construction risks, need thorough research on developers
⚠️ Developer Research Tip: Always verify a developer’s reputation before buying an off-plan unit. Check past projects, legal documentation, and customer reviews to avoid potential scams or project failures.
Step 4: Where to buy real estate property under $100K as a foreigner
Why Western Markets Are No Longer Affordable
In the Netherlands, where I live, as of January 2025, the average transaction price for an owner-occupied home has surged by 11.5%, reaching €474,534, and is predicted to hit €520,000 by the end of the year, according to De Nederlandsche Bank. With just $100K, you can barely afford a parking space, let alone an apartment.
The same trend applies to Germany, Denmark, the UK, and other Western European countries, as well as the U.S., Canada, and Australia—where real estate prices have skyrocketed, pushing affordable investment properties out of reach.
Even in Eastern and Southern Europe, once-affordable countries like Poland, Serbia, Montenegro, Romania, Turkey, Spain, and Italy have seen steep property price increases in the last few years.
⚠️ Interested in investing in lesser-known towns in Italy for under $100K? You might find it useful to check out my blog here first.
To make matters worse, many governments have introduced stricter short-term rental regulations on platforms like Airbnb, or have banned them outright. Countries like the Netherlands, Italy, and Spain have imposed heavy restrictions, making it increasingly difficult to profit from short-term rentals.
That said, finding affordable real estate in developed countries is nearly impossible at this price range, but there are still places where foreigners can buy property under $100K with high rental yields in 2025.
A Word of Caution: Markets Change – Do Your Research!
The list below is not exhaustive and is based on my own experience. Market conditions change frequently, and not every country will be a perfect fit for all investors.
Do your due diligence before investing—verify information, study market trends, and ensure the country aligns with your risk appetite, investment goals, and strategy
📍 My Personal Example: Georgia 🇬🇪
Five years ago, six of us were interested in investing in Georgia. Even though we were all targeting the same country, our strategies were very different:
- One investor bought land near Tbilisi.
- One investor bought a condo in Batumi.
- Three of us purchased apartments in different districts of Tbilisi.
- One person decided not to invest at all.
Among the four apartment buyers, two were dissatisfied, while the other two (myself included) were happy.
Biggest winner? The investor who bought land—his investment has 10x-ed in value since then!
👉 Lesson learned: Even in the same country and city, investment results can vary dramatically. Success depends on your ability to evaluate market potential and spot the right opportunities.
📍Best Countries for Buying Real Estate Property Under $100K
Europe
- Georgia: Low taxes, stunning landscapes, great food, rising digital nomad hub, growing tourism market. Read about the mistakes I made while investing in Georgia so you can avoid making similar ones.
- Romania: Low taxes, affordable property prices, high rental yield (6-8%), strong economic growth (4-5% GDP), decent population size.
- Bulgaria: Low taxes, affordable living and property costs, high rental yield (6-8%), growing expat and digital nomad communities.
- Montenegro: Stunning landscapes, popular tourist destination, increasing number of expats from Germany and Scandinavia seeking lower costs and better weather.
Africa:
- Kenya: Large and young population (60M+), high rental yield (6-10%), strong economy, relaxed Airbnb/rental rules, growing demand from both locals and expats. [Read more about my investments in Kenya here]
- Egypt: Huge and youthful population (117M), strong rental demand from locals, expats, and tourists, high rental yields (7-12%), one of Africa’s fastest-growing economies.
- Morocco: Major tourist hotspot, strong rental demand from locals, digital nomads, and tourists, relaxed Airbnb rules, high rental yields (6-10%), fast-growing economy.
South America:
- Mexico: Large population (131.9M), booming tourism industry, top digital nomad destination, affordable cost of living, growing economy.
- Colombia: Favorable foreign investment policies, high rental yields (up to 10% in Medellín), growing tourism sector.
- Costa Rica: Political and economic stability, pro-investor real estate laws, booming tourism, strong rental market, property available under $100K in key areas.
Asia:
- Vietnam: Large, youthful population (101.6M), rapid urbanization driving demand for housing, strong tourism growth, fastest-growing economy in Asia (7%+ annual GDP growth for over a decade). Read more about my real estate investment journey in Vietnam here. Popular beach towns/cities with affordable real estate prices you can focus on are Da Nang, Quy Nhon, and Phan Thiet.
- Indonesia: Massive population (285.7M, 4th largest globally), one of Asia’s fastest-growing economies, high rental demand in hotspots like Bali, strong expat and tourism market.
- Cambodia: Young population, fast-growing economy, booming tourism, and is one of the most foreigner-friendly markets, offering easy property ownership, banking, and minimal bureaucracy. Read more about my real estate investing in Cambodia here.
‼️ From my personal experience, while property appreciation in Asia looks promising, rental yields are often lower compared to Europe, Africa, and South America. If high rental yield is your priority, Asia may not be the best option.
🔗 Another crucial factor to consider is capital controls—ensuring you can freely transfer your money and profits when needed. You can read more about countries with strict capital controls to avoid and countries with relaxed capital controls that make it easier for investors .
Final Thoughts: Is It Really Possible to Invest in Profitable Real Estate with $20K?
Yes, but only if you do your homework. There are real opportunities in developing countries, but success requires:
✅ Thorough research
✅ Smart financing
✅ Careful due diligence
If I can do it, so can you! 🚀
