Historically, real estate has appreciated at a better rate than other investments. Stocks may come and go, but most real estate will always be there. Furthermore, not much new real estate is being produced, and the demand is high. But just like picking stocks, identifying real estate has to be done with knowledge and careful research, whether by you or your advisors. Look into eminent domain laws—can the government easily preempt your property and for what reasons? Are there environmental concerns that may affect your investment? Will that beach be there in twenty years or will a shortage of resources change the desirability of the area? What sort of zoning laws exist? What will happen to your investment if the area is overdeveloped?
Property usually appreciates in value as demand increases. Look at the appreciation of the location in constant currency value over time. Measure time in decades for a better view. You may be interested in having your property generate income, unless your investment strategy is based solely on appreciation. Having both is ideal— holding for long-term appreciation and positive cash flow is like having a strong stock that pays dividends. Rental income can have tax benefits and provide leverage for other investments.
The old saw of “location, location, location” is international. Before exploring property outside the United States, it is a good idea to understand locations here and their ability to generate income and provide appreciation. You may discover that it makes more sense to invest in your own backyard, but if you do decide to go offshore, you will know what to compare and contrast to make a good investment.