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Is Asian Real Estate A Good Buy Now?

Nowhere has been hit by Coronavirus harder than Asia. Tourism is dead, cities are on lock down, and businesses are tanking. As such, many speculators want to “buy the dip.” And there are plenty of forums and expat groups where would-be buyers are discussing just how much they can earn off the Asian real estate market and its current state.

But is this a good idea?

Today’s article takes a deep look into the situation.

Asian Real Estate Markets Will Be Low For A Long Time

Everyone wants to buy real estate right now. People who have never even owned a house are suddenly primed to buy riverfront properties and rent them out as multi-unit apartment complexes. Or, they want to scoop up a condo and use it for Airbnb rentals.

This is a great idea, and many properties are selling at a discount, however there’s a good chance that tourism stays dead for most of 2020 (not to mention the logistics of closing a commercial real estate deal during a pandemic).

(Here’s A Unit That’s Currently On Sale)

Right now prices are very low, but they’ll stay this way for some time. If you’re serious about buying property, maybe wait until the lock downs end and tourism starts to pick up again. Real estate prices will remain low, and you can still pick up a fantastic property at a discounted price, you’re just doing so with more certainty in the market.

In the meantime, you might want to look elsewhere for your real estate investing.

Here’s a useful suggestion:

If You Want Real Estate, Check Out REITs

A lot of real estate gurus talk about buying house with no money down, or using foreclosure sales to gobble up cheap properties. Yet none of them ever mention the power of utilizing a real estate investment trust (REIT). This is a special asset which trades like a stock (you can purchase them through any brokerage app), and allows you to buy equity in a property (or properties).

Best of all, REITs make it easy to invest in buildings that are usual “off-limits” for most folks. You can buy equity in hospitals, cell phone towers, hotels, shopping malls, and even private prisons.

Best of all, you don’t need to worry about maintaining the buildings or managing the properties. That’s all done by the trust’s board of directors.

Instead, you just get to relax and collect your checks.

I mention this because it is an easy way to invest in the Asian real estate market, the US real estate market, the European real estate market… you get the picture.

(REIT Indexes Are Yielding Big Returns)

There are a whole bunch of REITS to choose from, but the easiest (and arguably safest) is the Vanguard US REIT Fund (Symbol: VNQ). This pays out around 4% annual, netting you about $1,000 for every $25,000 invested. In other words, you’re getting similar returns to a conventional landlord.

There are also plenty of other conservatively managed REITs paying out more, if you’re willing to do your research.

Personally, I use Top Dividend Stocks to find good, reliable, and high yielding REITs. Two of my positions are currently paying over 10% per year, netting an incredible $100+ for every $1,000 invested. Both are also safe, stable companies with decades of consistent returns behind them.

With stocks and real estate as crazy as they are right now, I highly suggest checking out Top Dividend Stocks. You’re going to get some incredible investment ideas by doing so.

Final Thoughts On Real Estate Investing In 2020

Buying a well diversified REIT is a smarter way to play the market than focusing on one specific property right now.

Everything is closed around the world, tourism is (most likely) dead for the remainder of 2020, and there’s still a lot of uncertainty as to when things will open up.

I’d skip the individual properties for now (wait until things are a bit more certain) and focus on quality real estate investment trusts. This allows you to better diversify yourself, and to capitalize on properties outside of the standard retail and residential markets.

I also highly recommend using Top Dividend Stocks if you want to research high quality REITS from across the globe. You can find stable investments (with lengthy track-records of good performance) that are currently yielding double digit returns. This is a safe and easy alternative to speculating on individual properties.

Rob: