Top 10 Most Exotic Countries Where You Can Buy Affordable Property

10 Exotic Locations Where You Can Afford To Invest

December 30 2015 | Srinibas Rout

The OECD report compares house prices to wages, and then compares this ratio with the historical averages. (Wikimedia)

Ever dreamt to have a home in a faraway foreign land? If a recent report by the Organisation for Economic Co-operation and Development (OECD) is to be believed, you can now make those exotic houses that you see in the background of many of the Bollywood movie songs, your own. The OECD report shows property prices are declining in many of the developed and developing nations.

The OECD report compares house prices to wages, and then compares this ratio with the historical averages. The report showed that house prices differ widely across OECD countries, both with respect to recent changes and to valuation levels. The change in the real housing price index compared to a year earlier is used to tell whether prices are rising or declining.

For valuation, if the price-to-rent ratio (a measure of the profitability of owning a house) and the price-to-income ratio (a measure of affordability) are above their long-term averages, house prices are said to be overvalued, and vice-versa. For example, the price-to-income index reading of 0 says that the affordability is neither higher nor lower than the long-term average. A negative reading shows property is more affordable relative to earnings than the historical norm.

PropGuide counts lists the top 10 most affordable country from the report: