No matter where you live, there are local investment properties available to you. Historically, buying local was the only viable path for individual property investors. Today the game has changed and individuals can leverage the power of international property. The same techniques that have generated billions for institutional investors are now available to you. While there may be a comfort in knowing your property is just around the corner, investing locally will severely limit your returns. Smart investors look at the bigger picture.

What are the five advantages to investing globally? Read on to find out.

Recent research from shows 12% of people are actively looking to buy overseas and a further 23% would consider it.

– Nerida Conisbee, REA Group Chief Economist

1. Better Selection

The biggest advantage to investing internationally is that it opens a door to a much larger pool of properties. You are no longer forced to settle for the current yield, growth and price of a local market. Instead, you can explore a more expansive list of options to find an opportunity perfectly suited to your investment strategy. The geographical nature of property creates an inherent lag in responding to demand. This means that there will always be variation in yield and growth between markets. By monitoring forward indicators, it is possible to identify areas where future supply will fail to meet demand. Investors can leverage this information to select a property with the highest potential across all major population centers, not just the one they happen to call home.

2. Lower Cost Of Entry

Between markets, the initial investment required to purchase a property can differentiate quite drastically. For example, the average price of property in Sydney now exceeds $900,000 while property in the United Kingdom can be purchased for less than $200,000. The lower cost of investment allows investors to construct a portfolio of multiple properties by leveraging the same amount of capital. Added diversification decreases risk by generating rents from a larger number of tenants.

3. Higher Yields

As the world’s leading property markets have risen to unprecedented levels, many investors have become enamored by the wealth generated through capital appreciation. The growth curve of property values in Hong Kong, Sydney, Melbourne, Toronto and Auckland is of historical proportions. While the returns garnered over the last 10 years are impressive, future growth is filled with uncertainty. One of the most alarming factors facing investors in these markets are the record low yields. As property values have risen, rents have failed to keep pace. Yields in Sydney and Hong Kong have dipped below 3% leaving investors entirely dependent on continued growth.

4. Geographic Diversification

International property brings a new level of protection to your portfolio. Instead of simply diversifying across different asset classes, you can diversify across multiple economies. Building a property portfolio that is spread across a combination of markets will help insulate your wealth from the fluctuations that are common with an individual location.

What Markets Do we recommend?

5. Capitalise On Economic & Political Events

Around the world, economic and political events have a direct impact on local property markets. A single policy decision or rate change can completely change the outlook. Keeping abreast of current conditions across major markets allows for portfolio allocation based on forward indicators. By monitoring the levels of supply and demand, investors can identify the right location and time to buy.

How can you build a better property portfolio?

Learn more about CityYield’s disruptive strategy.

Speak with a CityYield expert to ensure your property portfolio is headed in the right direction. Learn how CityYield offers a new approach to property investment. An approach that will protect your wealth and put more money in your profit.

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