BUTs property prices continue to rise, investors do not need to feel that market prices are out of reach, with opportunities such as FlexShares Global Quality Real Estate Index Fund (GQRE)…
The global appeal of real estate is prompting US buyers to seek property in Europe, according to recent article in the Wall Street Journal…
“In mid-June, the European Union resumed non-essential travel from the USAThis has caused a spike in property inquiries, says Mark Harvey, London partner and head of international residential sales at UK’s Knight Frank, according to a Wall Street Journal article. vacation homes in Italy and France, and he also saw more calls about Lisbon. IN Savills, Another British real estate company, the number of inquiries from Americans has doubled since the same period last year, said Hugo Thistlethwaite, head of global housing development. “
According to the fund’s description, GQRE looks for investment results that broadly match the Northern Trust Global Quality Real Estate’s price and performance (excluding fees and costs). The index is designed to reflect the performance of a range of companies that collectively are more influenced by quality, value and dynamics than the Northern Trust Global Real Estate Index.
“Investment in the real estate sector offers the potential for increased growth, diversification, income, along with potential protection against the risk of long-term inflation for the portfolio,” – The FlexShares article says… “We believe that a well-diversified and global approach to real estate investment is key to unlocking the full range of these potential benefits.”
Income without the landlord’s headache
One of the benefits of investing in GQRE is to generate passive income through real estate investment funds (REITs). Investors can generate income without having to worry about acquiring a rental property and then becoming a landlord. Rent collection, property maintenance and more are off the table.
“Global real estate can provide an alternative source of income for investors seeking profitability in a low-interest environment,” he said. FlexShares reports on its website… “Historically, our analysis shows that dividend payouts distributed by real estate investment trusts (REITs) have been attractive compared to dividends on stocks and fixed income coupons.”
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