Investing abroad: how to invest in foreign markets
For people interested in international investing, expanding their global investment portfolio is the best solution. Buying foreign stocks allows you to diversify, protect yourself, and participate in the growth of foreign economies. Learn more about the top 7 best options for investing in new markets
Investing money usually leads to high returns, which is why quite a few people choose this path to achieve their long-term financial goals. However, finding new markets can be a difficult and intimidating process, especially for first-time investors.
Where should you invest abroad? Top 7 best options for investment further.
Investments in the stock market
Investing in stocks is considered to be one of the fastest and most effective ways of long-term capital growth. Experts say that for almost 100 years, the average annual return on shares is 5.9%. And although they are sometimes volatile, stocks can offer investors high returns.
However, when choosing to invest in the stock market, it is important to diversify your portfolio – you should not invest in one asset class or region. It is also better to buy only what you are interested in.
Investments in real estate
Investing in real estate can be quite expensive, but it has the potential to bring the highest returns to the investor. The advantage of real estate is that it is possible to receive income in several ways: appreciation of the object, income from rent, growth of the exchange rate, etc.
While the stock market can only profit from fluctuations in share prices, real estate is more immune to a crash due to multiple sources of income. The only drawback of this method of investing is that it is important to have a sufficient amount of knowledge about this area.
Investing in foreign real estate is an attractive proposition for those who dream of additional income and are also looking for an opportunity to obtain a permanent residence permit or citizenship in another country.
Currently, Indonesia, particularly the island of Bali, is a promising destination. According to experts, the amount of net profit from the sale of apartments purchased in Bali during the construction phase will be 44% in three years. When renting real estate, you can return the investment in 5-6 years. However, the investor should carefully choose a developer, it is better if he has international work experience. It is also important to pay attention to the type of real estate and the location. A profitable investment option in Bali is the purchase of premium apartments ANTA Residence Canggu from the reliable international developer ANTA Group.
Turkey also has an attractive real estate market where you can get a high return on investment. Most investors prefer to buy business-class apartments in Turkey, because such an investment is a good option, both for living and for investments. Read more about the advantages of investing in real estate in Turkey here.
Useful expert advice
Anton Taranenko is the founder and CEO of Visit Ukraine and Visit World online platforms and the owner of the international development company AntaGroup:
Investing in new markets, including foreign markets, can be beneficial for portfolio diversification and high returns.
New markets usually have significant potential for your growth and development. However, before investing abroad, you should conduct a detailed analysis of the potential market, consider the political and economic stability of the country, its legal system, risk level and other factors that may affect investment activities.
Being aware of local laws and tax rules is also very important, as it can affect the value of the investment and its return.
Here are some ideas of possible markets for investment abroad:
1. Real estate in emerging markets: Countries such as Brazil, Indonesia, China, India or Vietnam offer opportunities for residential and commercial real estate investment due to their rapidly growing economies and the development of the local real estate market.
2. European resort areas: These are often familiar tourist destinations that offer investment opportunities in villas, apartments and hotels in popular tourist regions.
3. Commercial real estate in international business centers: Investing in commercial real estate in global financial centers such as London, New York, Singapore or Hong Kong can be attractive for generating stable income.
4. Residential real estate for rent: Investing in residential real estate for rent can be profitable in many countries where there is a large need for rental housing.
Of course, before investing in any new market, it is important to obtain professional advice and conduct a thorough analysis of the risks and opportunities associated with a particular market and type of property.
Mutual or exchange funds
Mutual funds or stock exchange funds can help diversify your investments.
Mutual funds are investment companies that pool investors' money to buy securities, such as stocks or bonds.
ETFs (exchange-traded funds) are also pooled investments, but they trade on stock exchanges and usually track index funds or other asset classes.
Such funds allow new investors to spread their money among hundreds of different securities, so they don't have to rely on the performance of a single stock to make money. Both types of funds are managed by professional, experienced managers who charge a regular fee for their services.
Opening a business or investing in an existing enterprise
The majority of enterprises in the world belong to small businesses. Also, according to the SBA, about half of all U.S. workers are employed by small businesses. Due to such a wide market, it is sometimes much more profitable for investors abroad to invest in an existing business or start a new company.
The development of technology has made it much easier to open and run a small business and get a significant profit from it. However, first of all, before launching, it is worth researching the market and competitors, hiring specialists, developing an effective business plan, etc.
Top 7 best countries to open or join a business in 2024, search by the link.
Bonds and fixed income investments
Government and corporate bonds are conservative investments that can help reduce risks in an investment portfolio. Usually, the investor receives a fixed amount of payment over a certain period of time.
High-yield savings accounts
High-yield savings accounts give investors all the safety benefits of traditional bank accounts (funds are insured by government deposit insurance corporations). You can also easily open a high-yield savings account at most banks and credit unions. As of November 2023, many banks' high-yield savings account rates are 4% or higher. Meanwhile, the average rate of return on traditional bank savings accounts is 0.45% over the same time period.
Investing in precious metals, especially gold, can help balance an investment portfolio. Gold can protect an investor from inflation and exchange rate fluctuations, and is also one of the most reliable investment options in a period of geopolitical instability.
The yellow metal also has attractive properties that make it a unique investment. Most importantly, it is rare because it is difficult and expensive to mine. Production rarely exceeds 2% of volume per year. In addition, gold almost never loses its quality and does not deteriorate.
Investing abroad will be a good experience for the investor, will expand opportunities for earning, open new markets and allow diversification of one's portfolio.
Daria Rogova, Head of Insurance at Visit World
To move, travel or work safely in a new country, you will need health insurance. You can apply for an extended policy on our website here.
Products from Visit World for a comfortable trip:
Travel guide for 200 countries;
Legal advice from a local specialist on visa and migration issues;
Travel insurance around the world (please select the country of interest and citizenship to receive services);
Medical insurance all over the world.
More articles on the topic:
Comparison of investment instruments: pros and cons of investing in real estate.
At the beginning of the new fiscal year 2024, the USCIS announced a number of changes to the issuance of additional H-2B visas that may affect seasonal workers seeking employment opportunities in the United States. Learn more about the key points of these changes and their possible consequences
21 Nov. 2023More details
Investors are always on the lookout for new investment opportunities that can bring high returns. But how do you find them in a competitive and dynamic market? Learn more about the 7 best methods for finding profitable investment opportunities
21 Nov. 2023More details
Saudi Arabia is home to a growing community of expats who are attracted by the country's huge and open economy, favorable company formation procedures, and efficient tax regime. Find out more about the benefits of doing business in Saudi Arabia, whether a foreigner can open a business in the country, what list of documents is required to start the procedure, and other important details
22 Nov. 2023More details