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RSS FeedForeign Homes Attractive Investment to Americans |
Posted at Debra Allen Real Estate Blog by Debra Allen
Nov. 2, 2007
Starred by: 1 Member
Foreign Homes Attractive Investment to Americans
Housing in the U.S. may be limping along, but in Europe and Asia, it's going like Hotcakes.
Between 2001 and 2006, the value of a one-bedroom apartment in New York appreciated 31 percent. But the same money invested in London, Paris, or Mumbai would have returned 92 percent, 129 percent and 149 percent, respectively.
Part of the increase is due to the dollar's decline against the euro, says Ward Naughton of HiFX Inc. a San Francisco company that arranges financing for international deals. He says that will turn and when it does it will make more sense to invest in Asia properties where economies are growing.
He also suggests that potential investors start by buying an apartment in some attractive place - like Paris or Panama. A foreign-currency-dominated mortgage will work in a borrower's favor if the dollar strengthens.
Can't afford a foreign getaway? Consider investing in a foreign real-estate mutual fund or exchange-traded fund. Alpine International Real Estate Equity Fund (EGLRX), the Fidelity International Real Estate Fund (FIREX) and the new index-following exchange-traded funds: SPDR Dow Jones Wilshire International Real Estate ETF (RWX), WisdomTree International Real Estate Fund (DRW) and iShares S&P World ex-U.S. Property Index Fund (WPS) are all prospects.
Housing in the U.S. may be limping along, but in Europe and Asia, it's going like Hotcakes.
Between 2001 and 2006, the value of a one-bedroom apartment in New York appreciated 31 percent. But the same money invested in London, Paris, or Mumbai would have returned 92 percent, 129 percent and 149 percent, respectively.
Part of the increase is due to the dollar's decline against the euro, says Ward Naughton of HiFX Inc. a San Francisco company that arranges financing for international deals. He says that will turn and when it does it will make more sense to invest in Asia properties where economies are growing.
He also suggests that potential investors start by buying an apartment in some attractive place - like Paris or Panama. A foreign-currency-dominated mortgage will work in a borrower's favor if the dollar strengthens.
Can't afford a foreign getaway? Consider investing in a foreign real-estate mutual fund or exchange-traded fund. Alpine International Real Estate Equity Fund (EGLRX), the Fidelity International Real Estate Fund (FIREX) and the new index-following exchange-traded funds: SPDR Dow Jones Wilshire International Real Estate ETF (RWX), WisdomTree International Real Estate Fund (DRW) and iShares S&P World ex-U.S. Property Index Fund (WPS) are all prospects.
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