All across the country we hear the heyday of real estate investing in the US is over. The US has been on a roller coaster of major inflation to massive deflation for the last 200 years. As of late with the flattening of the world economies real estate values abroad, in countries whose economies are coming up toward the US level, are creating wealthy real estate owners. This does not mean you should not buy US real estate by any means. It just means that major appreciating speculative acquisitions are not nearly as likely to be as profitable as same acquisitions in growing capital markets.
Major international emerging markets will fuel economies abroad and support inflationary real estate prices. Investment sensibility in those emerging markets will offer extraordinary opportunities to ride the inflationary wave of international real estate values.
There are 3 elements to watch for relative to successful investing abroad. These factors are, a careful evaluation of risk propensity you must be in a safe stable country evaluate, emerging growth cycle so you are buying in the path of progress and deal with proven professionals in the area. Mainstream investors are touting the importance of an international diversification and International Real Estate Investment Trusts are now turning 3 years old.
For a simple recent example Hadley Dean Managing Partner with Colliers International has been in Eastern Europe following the emerging opportunities there while calculating and recognizing the market risks at hand. In their New Europe Real Estate market report they tout the continuous growth of Poland, even using "of course." Another market they are very high on at the moment is Asia Pacific sections which are the "remained the most robust region in the world. Kerin Cin Managing partner for Colliers in Turkey notes,"The Turkish Economy going into Q3 2010 is on a strong track of growth and recovery, however challenges remain. The results of Q1 2010 showed an increase in GDP of 11.7%, the highest in Europe and second in the world to China.
According to Henry Chesbrough, from his current book Open Services Innovation, "At the end of the second world war, American spending on research and development made up half the world's total; today, it has dropped to one third. South Korea, China and India are pouring tens of billions of dollars into scientific fields that range from genomics to nanotechnology. They are producing staggering numbers of engineers and scientists, who in turn are publishing lots of papers and acquiring ever more patents. The point being these other economies will create consumers who will want real estate and cause values to rise.
According to Jack Farley in a May 4th article from Financial Times, Mexico has quietly purchased nearly 100 tonnes of gold bullion, as central banks embark on their biggest bullion buying spree in 40 years. The purchase, reported in monthly data published by Mexico's central bank, is the latest in a series of large gold buys by emerging market economies intent on diversifying reserves away from the faltering US dollar.
China, Russia and India have acquired large amounts of gold in recent years, while Thailand, Sri Lanka and Bolivia have made smaller purchases.
Although remote management and political risks abound, professionally navigated reduction of such risk warrants investigation. It is time to take advantage of this growing phenomenon and grab your chance at an international fortune.
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