By going international or global (including the US) when purchasing real estate investments namely REIT; has the best change to minimize risk and improve returns vs. only US REITs.
Advantages
The best reason or advantage is to reduce exposure to overall US economic weakness and specifically real estate weakness. The more choices there are, the more opportunities and finally emerging economies will grow faster overall than economies in the US and Western Europe.
There are two considerations you should focus on; your goals and the investment manager’s experience and global presence.
Review your objectives such as growth, income or a mix. If mix is your strategy choose a REIT that strategically seeks current income plus potential capital appreciation.
Another option is to consider international or global mutual funds, read the prospective of the fund and check who the fund manager is as well as how long he/she has been at the helm.
Dan
