Why invest internationally?

Many people who have been investing in the US real estate market ask, "Why invest internationally?" Since this blog is all about investing in international markets, I thought it might be helpful to share an article I thought was of paticular interest.

The cover for Fortune magazine’s October 2005 issue reads “The World’s Greatest Real Estate Investor (and what you can learn from him)”. The four-page cover story begins with the headline, “I’m Tom Barrack* and I’m getting out. *The world’s best real estate investor has made billions in the U.S. market. Now he’s cashing out and buying overseas. Should you cash out too?” The article details Barrack’s illustrious real estate career, and his amazing ability to predict market conditions. Barrack believes the 30% rise in construction costs will contribute to the deflation of the real estate bubble in the US, and that the bigger opportunity in real estate investment currently lies overseas. The article is posted on the CNN Money site.

It seems clear to me that as the US real estate market makes it more difficult to realize strong cash flow and appreciation, investors are looking at international markets for new opportunities. I know I am. I think for some investors, more education about what is available in international markets and what is involved regarding taxes, financing and legal issues will be the key to jumping in and joining the trend towards offshore investing. We hope that through this blog, you'lll get some of the information you need to consider taking the leap.