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2. How should an investor think about investing domestically versus globally?
Investors typically make their first real estate investments in their domestic markets, before moving on to invest in other countries later. Their home market is the natural choice given they will be most familiar with it and its associated legal structures, tax system, supply, demand and other potential risk factors. This creates a strong home bias, which typically leads to over-exposure to domestic real estate and results in concentration risk. Moreover, home…