Overseas property investment

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For investors, the race is on to find the best property investment opportunities the world has to offer, investors generally look to acquire a property portfolio that has a combination of short and long term opportunities in a variety of different countries therefore diversifying their investments and therefore they can minimalise their risk

It has been suggested that during all stages of the property cycle, diversifying by adding international property to a property investment portfolio can significantly increase returns and decrease risk.

"The case for global diversification over the long term is strong. In a boom, a bust, or even in a long period of similar conditions, an investor with global real estate assets would have significant improvements in risk adjusted return and increased returns overall.

Globally, the increasing attractiveness of property and greater capital mobility have made cross-border investing more popular. This has also been aided by the increasing accessibility to finance for non foreign nationals in many countries.

By taking advantage of lags in timing in the different property and economic cycles, an investor can insulate a portfolio from some of the domestic ups and downs.

Many people feel that, international property is out of reach. There are also practical challenges to cross border investment for example, culture, currency, tax and legal jurisdictions. As finance becomes more easily available the foreign markets are becoming increasingly accessible to small and medium investors.