In terms of asset allocation targets, in addition to stocks and bonds, there is a very important area, that is, real estate, commonly known as buying a house. Now, mentioning buying a house domestically may not be a good recommendation, but what if it's about buying a house abroad?

The U.S. real estate market is in the stage of bottoming out and rebounding after the subprime mortgage crisis in 2007. In the long term, the risks have been fully released, and a new upward cycle is gradually unfolding. At present, the U.S. economy remains strong, and its asset attractiveness is strong. A number of institutions, including pension funds and insurance companies, such as Berkshire Hathaway under Warren Buffett, have heavily invested in mysterious overseas REITs.

In simple terms, REITs are an investment tool that mainly invests in infrastructure, office, commercial, hotel, and other held real estate that can generate stable rental income. Due to the stable and predictable cash flow from rental income, it can effectively diversify risks and is relatively independent of other market trends, giving it a risk-avoiding attribute and is often considered a high-quality allocation asset.

Overseas REITs have several important advantages!

Firstly, it is the best target for diversifying risks. On the one hand, the income cash flow of REITs is stable and predictable, and the volatility of REITs is usually lower than most stocks. On the other hand, the income of REITs mainly comes from the rental income of real estate, which has a weak correlation with the main investment products. In the market with stock and bond fluctuations, it is easier to go out of an independent trend. From the perspective of the portfolio, it can reduce the fluctuation of the asset portfolio.

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Secondly, it belongs to the "dividend-like" asset, and the rise is stable. Overseas REITs usually provide high dividends. The average dividend rate of all U.S. REIT products from 1980 to 2020 over 40 years is 3.16%, while the dividend rate of the S&P 500 index is 1.34%. Especially this year, the market fluctuates greatly, and the risk-avoiding sentiment rises, and overseas REITs rise against the trend. As of September 2, 2024, the FTSE Developed Markets REITs Index has risen by 13.64% in the past three months. Think about us, such income is enough to make people sleep well!

Finally, it has a low investment threshold, low fees, and strong liquidity. The threshold for directly investing in real estate targets is very high, such as New York Manhattan Penthouse, Hong Kong Victoria Harbour Apartments, Tokyo Bay Studios, and Shenzhen Bay Rui Mansion. A set of 30-50 million is not enough. In addition, considering the restrictions on foreign investors, taxes, foreign exchange, and other restrictive conditions, it is very difficult to truly invest in real estate abroad.

Domestically, individual investors only need 10 yuan to layout overseas REITs through QDII funds. With only 10 yuan, you can become a landlord, are you tempted?

REITs are mature real estate investment tools overseas, with good market liquidity and high transparency. Like other listed companies, REITs trade on exchanges and must disclose financial information to investors. Overseas, in addition to individual investors, they are also favored by pension funds, insurance companies, commercial banks, and mutual funds.

Looking forward to the future, industry insiders said: "Although the timing when the Federal Reserve truly starts to cut interest rates may deviate from market expectations, the current downward cycle of U.S. interest rates is basically determined. In the future, as the downward cycle of interest rates begins, it will benefit the stock and bond attributes of REIT assets. The downward trend of interest rates will make REITs有望 obtain greater upward flexibility than stock assets."