Dear readers, recently, I happened to take note of an online advertisement on investing in overseas properties. The advertisement touted the benefits of overseas investment: larger market and demand as compared to the smaller and more limited market and demand of Singapore, be it in terms of buyers for properties or individuals seeking to rent properties. In gist, a bigger market and demand are what make overseas markets (always) seem so attractive to Singaporeans.
I would always think that though there are some differences between property investment and stock investment (main difference is the advantage of leverage through property investment), investors who would like to catch a slice of the larger overseas markets can always think about doing so via overseas stock investment.
At least, overseas stock investment is the preferred option for me, to tap into overseas markets for growth rather than overseas properties.
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!