Real estate is one of the most sought-after channels of investment. It creates a steady flow of rental income and cash while helping you diversify your investment portfolio. Besides, real estate investment also comes with several tax advantages. For a long time, there were only two main ways to invest in real estate. You could either purchase a rental property or invest in fix-and-flip projects. But, in recent times, investing in international real estate has also become possible. Of course, global real estate investment is a relatively new phenomenon, but it has taken the world of investors by storm. If you want to know the ins and outs of the concept and how a platform like Assetindexer can help, this blog is the place to be!
What is International Real Estate?
The concept of international real estate emerged in the 1980s as a consequence of the ongoing globalization process. International real estate involves cross-border sales, development, and leasing. Because of this, it is a very dynamic area of real estate and is impacted by changes in the value of markets in other nations. Moreover, it is also important to note that there are two categories of international real estate. These include commercial real estate and residential real estate. Some examples of international real estate transactions are –
- A citizen of one country buys a house in another country
- A corporation headquartered in one country purchases or leases an office building in another country
- A corporation or investment group in one country builds a hotel in another country
Top 5 Benefits of Investing in International Real Estate
There are multiple benefits of investing in international real estate. These include –
Global Investment Opportunities
Investing in international real estate provides you immediate access to an array of investment opportunities in different cities, countries, and property types. With this global perspective, you may access a variety of markets with different real estate cycles, growth possibilities, and economic situations. So, when you transcend beyond domestic markets, it becomes possible to identify high-growth regions, emerging trends, and untapped opportunities.
Prospect for Higher Returns
The second most prominent benefit of international real estate investment is the prospect of earning higher returns. Some emerging economies may experience rapid urbanization, population growth, and industrialization – all of which increase the demand for real estate. This leads to attractive and viable real estate investment opportunities. Furthermore, certain international markets may also offer favorable rental yields, capital appreciation potential, or access to niche sectors that are in high demand.
Portfolio Diversification
Investing in global real estate helps diversify your portfolios across different asset classes and property types, as you are adding exposure to internal real estate markets. This diversification can encompass commercial, residential, industrial or even hospitality properties. Diversifying your holdings across many real estate sectors helps mitigate the risk associated with being exposed to a particular sector or local market circumstances. Furthermore, international investments can also offer exposure to different stages of the real estate cycle, which enables better portfolio balance and risk management.
A Stable Source of Income
When sold at a profit, international real estate may provide dividends or returns to your portfolio. This is especially helpful when the economy of your country is slowing down or going through inflation. If the real estate investments are associated with a country with a strong economy, the gains and income generated by those investments could help offset any inflationary impacts on the remainder of your portfolio.
Risk Management
The fifth and very pertinent benefit of international real estate investment is risk management. By spreading your investments across different countries and regions, it is possible to minimize the impact of localized risks and fluctuations. We all know that real estate markets can differ significantly based on variables like political climate, economic stability, regulatory environments, etc. So, when you invest in multiple international markets, it becomes easier to manage risk and receive a hedge against potential disruptions and downturns in a particular market.
How to Invest in International Real Estate – A Beginner’s Guide
Now that we know the basics of international real estate and why investing in it matters, let us check out the ways you can indulge in the process.
Global REIT Investing
Legal entities possess real estate interests as REITs. REITs must distribute 90% of profits as dividends. You can start the process of international real estate investment with the help of global REITs. These encompass international residential and commercial properties and you can reap the benefits of direct ownership without having to own any property or deal with cumbersome property management.
Exchange Traded Funds
Exchange-traded funds or ETFs amalgamate the best features of stock and mutual funds. They can hold a collection of varying investments, including international real estate holdings, but they trade on an exchange like stock. Global ETFs have various benefits, including access to a wide range of foreign real estate markets and property types. When you sell ETFs for a profit, fewer taxable events are triggered since they have a lower turnover ratio.
Global Real Estate Mutual Funds
The third way of investing in international real estate is through global mutual funds. They own a variety of assets, but at the conclusion of the trading day, their price is settled rather than they trade on an exchange.
AssetIndexer – Your One-stop Solution for International Real Estate Investments
It is quite evident from the above discussion that international real estate investments come with a plethora of benefits. From providing you with a stable source of income to diversifying your portfolio and facilitating risk management, the merits are many. But, the looming question is – how do you find the right international real estate that suits your budget and other requirements? In such a context, AssetIndexer.com comes to the rescue.
AssetIndexer is an all-encompassing site that helps you filter through and find an array of prospective international real estate investments across countries. The website curates an extensive list of real estate investments from the nooks and crannies of the internet and presents to you a diverse range of investment opportunities from one single location. AssetIndexer aims to become a centralized source for anyone keen on exploring different real estate investment options, including global real estate.
Some of the reasons that make AssetIndexer a blessing for real estate investors are –
Compiled List of International Real Estate Options
International real estate is a tricky terrain, as you have to move beyond the usual mindset that you follow while curating a list of domestic real estate investment options. So, knowing where and what type of global properties to invest in and finding an international project that checks all the right boxes can be incredibly tedious. However, AssetIndexer solves this gargantuan problem by providing you with a compiled and curated list of the best and most viable global real estate investment options. So, rather than spending hours sifting through numerous websites, you can peruse an array of listings from one single location.
Easy Filtering and Scanning
AssetIndexer makes the process of finding the right international real estate investment much easier with the help of its top-notch filters. You can filter global properties based on location, maximum and minimum price, type of property, etc. These advanced filters streamline the mechanism of bumping into the right international real estate at the right time.
Saves Precious Time
Roping in the right international real estate deal can be tricky. You must be prepared to spend a lot of time, energy, and resources in cracking the most favorable deal. However, with AssetIndexer, these hurdles are minimized to a considerable extent, as you have handy access to a massive pool of sought-after international real estate projects from different countries and at varying price points. Besides, AssetIndexer also leaves no stone unturned in ensuring the authenticity and reliability of its listings.
Mobile Compatibility and Easy Usage
AssetIndexer is easy to use and simple to access. You can visit the website and check its listings on your mobile phone, laptop, or computer. All you need is an internet connection and a smart device. Besides, the site is incredibly easy to navigate and you can find the right information with just a few taps.
Wrapping It Up
So, there we have it, a crisp overview of the top 5 benefits of investing in international real estate and how a platform like AssetIndexer.com can help. Before you dive headfirst into global real estate, it is essential to remember that both domestic and international real estate markets mandate careful consideration and due diligence. You must assess the local market dynamics, legal and regulatory frameworks, currency risks, and cultural nuances before pouring money into a project. Besides, choosing the right curator is also crucial. If you choose a website that does not pay heed to the authenticity of the information it provides, the situation can get grim. So, always choose a dependable site like AssetIndexer to find the most sought-after international real estate properties.
