Five years after house prices began to fall in America – and more than two decades after the biggest property bubble ever burst in Japan – Warren Buffett, one of the most successful investors in the world, is betting on recovery.
Fortunately for British investors keen to gain some exposure to international real estate, you don’t need to tie up tens or hundreds of thousands of pounds in bricks and mortar overseas. You can reduce the risks inherent in dealing with foreign tenants, tax and legislation by using a pooled fund – such as a unit or investment trust – where minimum investments are often just a few hundred pounds.
Some, such as the little-known Japan Residential Investment Company even pay a decent dividend; in this case, 6.6pc net of basic rate tax. First, though, why would anyone want to buy into markets where prices have been falling for years?
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