The real estate market is up here in the United States but that’s not where most investors are focusing their dollars for maximum earning potential. Housing prices in Europe and Asia are surging and they’re rising faster than in the U.S.
Most investors don’t have the ability to simply catch a flight to China or Iceland to take advantage of the massive opportunities to purchase real estate – nor do they care too. Many are taking advantage of buying real estate equities from right at home through their brokerage accounts.
Duncan Rolph, a managing partner at Miracle Miles Advisors in Los Angeles, said that “International real estate funds are priced less than U.S. funds. Yet they pay higher dividends over 4%.”
“The Vanguard Global ex-US Real Estate ETF (VNQI) fund is the best example. The fund currently has a 12-month yield of 4.58 percent, according to Morningstar, and has notched a price return of 12.12 percent as of May 19. And the expense ratio is a measly 0.15 percent.”
For real estate investors looking for an opportunity to put their money to work and find that the U.S. market is currently too expensive for their taste, now may be the time to take a look into real estate funds offered right at the click of your laptop.
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Sources: Constance Gustke, special to CNBC.com