While most of what is being said in this thread is relevant, I think you guys are leaving out some critical issues that come before the specifics of finding the right real estate to buy in.

First, look at the nature of the business cycle and apply this to countries.

What direction is the country headed? What's its level of debt to income? What are it's products, what are its prospects for increased GDP growth?

Where is the country at in the business cycle, and how long, historically, have the business cycles run in that country?

If a business is located in a country going into recession, has a lot of debt, is struggling to sell it's products and doesn't have much hope of increasing sales... would you buy it's stock?

A country is more or less the same if one is thinking of buying real estate.

In the stock market, buying blue chip stocks isn't going to result in wild increases in equity, but dividends should be good and they shouldn't fluctuate in price much. They're stable and reliable, but they aren't going to yield a lot of profit.

The real profit is in the growth sectors and finding the companies that provide critical services or products within that sector. Get in at the beginning and it's a wild ride.

Pick the right country and the right area, and it's difficult not to make money because the market trends are going to result in substantial increases in property values. Look at the local people with money and the local people who are making money, and look at where they're buying property. That's a good indication of where the real growth trends are moving.

I looked at a lot of countries before deciding to move to Venezuela, and specifically Margarita Island.

GDP growth is about 10% per year and VE is the world's 5th largest oil exporter. They are using this oil revenue to build infrastructure like crazy, and business is booming. With the large percentage of poor people, there is huge growth potential domestically for all manner of consumer goods and services as these people improve their lot in life.

With currency exchange controls and a history of governmental mismanagement with respect to the economy, most Venezuelans with money invest their money in real estate... and Margarita Island is one of their preferred spots for property investments.

Due to crime and insecurity on the mainland, Margarita Island is getting a net in-migration of people from the mainland, and the majority of these people are businesspeople with money.

With oil revenues project to grow and the government spending money like drunken sailors in port (especially on programs for the poor), a lot of business people in this country are getting rich. Small businesses are expanding and a significant percentage of business owners are suddenly making money like never before. They like their country and they have the money, so they start buying property on Margarita. Sooner or later they move here.

According to a lot of "experienced" foreign real estate investors, I did it all wrong. They look at Venezuela and listen to the propaganda about property seizures, etc., and decide that it's too risky. Everyone was telling me that I was crazy for moving here years ago, and wow- were they ever wrong.

It wasn't luck, it was a good analysis. The same type of analysis can be applied to just about anywhere, and it works.