[Hope can that be when there is no possible market arbitrage that is -- real estate has to be bought and sold where it is.]
I think it a stupid article regurgitating all the same stuff we always here when the American Economy is feasting. However, I did learn something and will think about and research it. How to trade realestate internationally?
Well, you would not sell and ship the realestate. However, consider this; If you take out a very low interest loan in a country whose enocomy is souring (Europe) and the value of their $$$ is dropping against the dollar, and you pay cash for a property in say the US which has an expectation of appreciation rate larger than the interest rate, what would happen? The property appreciates, you lease the property while you own it, and the sale of the property in say 5 years for US dollars allows you to clear some value after you repay the foreign loan. You make money on; 1) the property appreciation Vs. Interest 2) Hopefully the lease income pays the foreign loan 3) The value delta between the foreing currency and US currency after 5 years.
It's just brain puddy that leaked out, but I gotta research this. I never thunk it. It sounds cute.
World is Enron writ large?