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It’s easy to take for granted the scope of “international real estate,” which lumps all the real estate markets of the world—193 countries, to be exact—into a single category of three words. While we recognize that a detailed guide to investing in international real estate could easily fill a book, NuWire has managed to summarize some of the basics into a short list of what investors should know before venturing into foreign real estate.
1. International real estate investment can offer excellent diversification of assets
Investment in international real estate offers diversification, which is “a superior investment style,” according to Ross Moore, senior vice president of Colliers International USA. Diversification effectively distributes risk among multiple markets and can optimize potential for return.
Because real estate market trends are cyclic, “we may have a down-cycle here in the United States, but [there may be] excellent opportunities in Argentina or Europe, [which] are in the beginning of an up-cycle,” Tyler Clay, president of FIABCI-USA, or the U.S. Chapter of the International Real Estate Federation, said.
Large, commercial real estate investors usually need a large amount of capital in order to acquire and maintain a global portfolio, according to Moore. However, small investors have the opportunity to diversify their assets on a microcosmic level, such as purchasing residential property in markets that show considerable potential for upward growth.
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Author: Melana Yanos
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