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Theres something about anything in a foreign country that is alluringly exotic. French wine, whether it is or is not, sounds more luxurious. Italian, Chinese or Thai cuisine has a strong pull for Americans tired of the standard burger or steak. And when it comes to people, while nothing beats the Texas drawl, there is something to be said for an Irish lilt or Australian accent. Is the same true for real estate? Does owning a villa in Tuscany have a stronger appeal than owning a country home in the U.S.? For many it does. International real estate investments are the touch of European (or other) flair they want. If you are one of those people, there are few things you should consider before investing internationally.

First, know that it is not a bad idea. International investments will greatly diversify your portfolio. A diverse, global portfolio may mean that when there is a downturn in the United States real estate sector, you wont be as hard hit, because there is often a contradictory upswing in the Asian market. Additionally, there is the opportunity in the foreign market to purchase homes or other residences that show great promise for the future. Americans are known to love traveling. When they do, they often want to ingrain themselves in the society they are visiting, thus making a home within Provencal more appealing than a hotel and your investment more profitable than you had dreamed.

But there can be a downside, too. The value of foreign currency, for example, can negatively affect your investment. Depending on the strength of the dollar and the strength of the corresponding currency, such as the Euro, the property bought could appreciate or depreciate in value without the actual worth of the home or lot changing. Before purchasing a residence in another country you have to consider how the market may change in the coming years and what change will do to the investment you are making in the present.

Furthermore, the legal red tape you may have to cut through to actually purchase and then rent or re-sell property in a foreign country may be more than youd like. In some countries, such as China, the laws change regularly and rapidly. You could one day follow the procedure to the letter only to find out two months later, when the property deal is final, that you are missing a key document or misfiled something because the laws and regulations have since evolved. You also have to be careful of fraud and predatory sellers.  Real estate agents in the United States are bound to particular codes and rules, but this isnt necessarily true in all regions of the world.

If you think you are ready to invest internationally, despite potential setbacks, you most certainly should. As stated previously, it is an excellent opportunity to expand your investment portfolio. When you do make a purchase, however, dont feel as though you have to go to the natural inclinations: France, Italy, and the United Kingdom. There are wonderful opportunities throughout the world, including in South America and Southeast Asia. Look around; do some shopping. The world in this case really is your oyster. Take advantage of it.