Taking Advantage of Global REITs
Are you looking to make investments outside the U.S. but are concerned about the laws, the language, or the actual investment itself?
U.S. financial services firms are now offering global REITs (Real Estate Investment Trusts) in Europe, Asia, and other parts of the world, both residential and commercial. These funds are aimed at U.S. investors who want to diversify their portfolio. This year, U.S. investors have poured more then $6 billion into international real estate funds, substantially more than was invested in domestic property funds, according to a recent Morningstar report.
Like any investment there are risks, so make sure you research the REITs you’re interested in and look at the return. Real Estate stock prices around the world are pricey because of years of gains and could surpass the value of the actual underlying properties. Currency fluctuations are another risk.
Other global investments, such as stocks, hedge funds, and other products, are becoming more popular as U.S. investors become more concerned with the U.S. economy and the devalued dollar.