Dear readers, given the same amount of capital, would you use the capital for investing in overseas stocks or overseas properties?
Overseas markets often offer the allure of a market that is many times more than Singapore’s, and to many, many more opportunities. And overseas stocks or properties are often the common ways to investing in the overseas markets.
For me, I will prefer to invest in overseas stocks than properties at any time for the following reasons:
Firstly, the rules are much simpler so much so that even if you do not want to buy the overseas stock from the overseas bourse and incur custodian or holding fees, you can simply invest in one overseas ETF on the Singapore Stocks Exchange!
Secondly, there are no complicated rules, paperwork before you invest your monies since online investing platforms are now convenient and easy to use.
Thirdly, investing in overseas properties, to me, seem to require extensive research into the property market, supply and demand over there, especially since many of us do not live in there and hence are unfamiliar with the markets. Such research is simpler for overseas stocks investing where you focus on one company. Also, if you prefer to invest in the overall stock market rather than in specific companies, you can index in any index!
Fourthly, if you are able to chance upon one multi-bagger overseas stock, the capital upside is far more than that from overseas property investment and the timeframe of profit could also be much faster. And also, you can get consistent dividend incomes as compared to needing to ensure your overseas properties are rentable in order to achieve consistent rental income.
Fifthly, liquidity is all it matters sometimes. Stocks are always more liquid than properties anytime!
Last but not least, overseas stocks investing can be done DIY compared to overseas properties investing, where normally you need to go through an intermediary.
The six reasons above are why I prefer to invest my monies in overseas stocks than overseas properties anytime!