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Going Global with Real Estate Investment

There are a variety of investment opportunities in the market. Some are offered directly by stock companies and others through investment companies. These companies offer different investment services including investment consulting, investment research services at DTZ, and investment valuation, among others. Investment options include mutual funds, stocks, and real estate. Before, real estate investments are limited by the borders of the country. However, nowadays, investment trends are showing that real estate investments are going global. People are buying real estate in other countries. However, these are not the same as millionaires buying mansions in Italy or Los Angeles, or buying luxurious condos in Manhattan. These are regular businessmen with some funds to invest and choosing to invest in real estates located in another country. Here are some of the factors that affect global real estate investments:

Location

Cities with high real estate investments from other countries are once dubbed as “superstar cities.” These cities see an aggregation of real estate investments driving the price even higher. Some of these are the fashion hubs of Milan and Paris, the financial hubs of New York and London, and the tech hub San Francisco.

However, there are real estate superstars who don’t seem to be superstar at anything. Case in point: Vancouver. Real estate prices in Vancouver are skyrocketing because of demand from the international market. Some economists suggest that Vancouver can be called a “Hedge city.” It is a city where there is good political and social stability. People from all around the world are investing in Vancouver because they believe the money they invested in these properties will not be disturbed by political or social unrest.

Vancouver also displays long term climate change protection.

Political, social, economic unrest

Some of the issues happening in different countries have sparked real estate investments in other countries. When China suffered an economic slump, Vancouver was tapped as an investment hub, with more and more Chinese people buying real estate there to protect their money from losing value in their own country. Real estate prices rose in Miami during the political unrest happening in Venezuela. People are moving to Miami and investing their money to protect it from the economic slump that comes with political unrest.

Effects of real estate boom

When a city is targeted as a real estate investment hub, it is the citizens who suffer. The demand for real estate by rich foreigners drive the prices even higher than normal. These higher prices hinder citizens from buying real estate for their own use. More and more citizens are becoming tenants in their own cities, unable to afford the skyrocketing prices of homes and other real estate. Another effect of a boom in global real estate investments is the rise in real estate taxes in properties owned by aliens, to counter the over proliferation of foreign investments.

The rise of global real estate investment has also lead to some neighborhoods becoming “zombie neighborhoods.” This is because international investors tend to leave the homes they purchase uninhabited or vacant.

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