Why is the Wall Street Journal quoting our own Sian Sinclair? When Grant Thornton's recent research reveals what drives $US250bn of foreign property investment, they sit up & listen. But when the main driver is gut instinct, it's time to hit the headlines!
While successful investors will always rely on instinct to some degree, too much reliance on gut feel involves an increased risk of following the herd and thus missing out on alternative opportunities that some disciplined analysis might reveal.
When buying real estate in foreign countries, most investors just go with their gut. Instinct is the driving force behind $250 billion of overseas commercial property investment, according to a survey from accounting firm Grant Thornton. When the firm asked senior executives in the U.S., U.K., Canada, Australia and India from all business sectors about what drives their decision to make significant investments in foreign markets, over half responded “it simply feels like a good fit.” Real estate markets around the world – from London to New York to Sydney – have been attracting huge demand from global investors hunting for returns amid low interest rates.