2.  Since their debut in the United States and
Australia, international real estate
investment trusts (REITs) have gained
popularity around the world. Many people
choose to invest in international REITs due to
their numerous advantages, such as
hedging inflation. Real estate tends to build
value over time, even if a currency
depreciates. In addition, tax laws typically
require REITs to distribute a majority of their
income, leading to strong yields and less
money for management to spend on
experimental, risky projects.

3.  International REITs also have the benefit of
diversifying portfolios across both asset
classes and geographic locations.
At the same time, international REITs come
with a great deal of risk. These investments
often carry a degree of political challenge
as land rights and taxation issues come into
question. Additionally, rapid changes in
currency can affect dividend distribution
even if the true value of real estate remains
unchanged.

4.  Tax inefficiencies can also inhibit the
value of international REITs. Finally,
international REITs tend to be illiquid and
opaque, thereby making them a poor
choice for investors with short-term goals.