International insights reveal real estate's secret diversification power

Benefits of Diversifying Internationally

Investing in international real estate not only provides diversification but also offers protection against local market downturns. For instance, when the U.S. housing market experienced a downturn in 2008, investors with properties in more stable economies, such as Australia or Canada, were able to offset losses. Furthermore, currency fluctuations can also play a role in enhancing returns. As an example, a stronger U.S. dollar can increase the purchasing power of American investors in foreign markets, allowing them to acquire properties at a lower relative cost.