Wednesday, March 09, 2016

Why invest in property overseas?

A new report from the experts at Savills has revealed that property investment now accounts for the vast majority of assets across the globe.
The study shows that real estate is worth around 60% of the total value of global assets (other assets include equities, bonds, gold and shares).

According to Savills, the current value of all property across the world is equal to around $217 trillion.

Directly comparing property to other assets there is a clear winner. For example, the report values the total value of all gold ever mined at $6 trillion and equities came in at $55 trillion.

Three quarters of the world’s real estate value is residential, 13% commercial and 12% agricultural.

Globally accessible asset

Perhaps one of the reasons behind why people invest in property overseas is the fact that markets can differ from country to country.
Investors may find overseas assets better value for money or even able to generate a higher return on their investment. 

For example, investors looking for commercial property may wish to buy in the likes of China, where Shanghai and Beijing have a high demand for Grade A office space and, with a relatively low supply, can provide investors with a fruitful market for investment. 

Residential property in Australia and the UK could present investors with a strong rental return, due to a lack of available housing and strong population growth in both countries. 

Studentaccommodation investment across Europe’s main university cities has also attracted investor attention. The asset class has emerged as the UK’s top performing sector, with locations such as Liverpool, Manchester, Luton, Newcastle and even London providing investors with strong rental returns. 

Some people wish to invest in property overseas as a way to safeguard their property portfolio. Spreading the risk across different markets is a strategy adopted by many successful investors. 

However, it’s not just about making money. ExperienceInvest suggests that an individual’s desire to own a place in the sun or a retirement property as a simple reason behind overseas property purchases.