"It turns out investing in Europe has been a good idea, because the euro has increased in value to the dollar," says Delores Conway, director of the Casden Real Estate Economics Forecast at the USC Lusk Center for Real Estate. "Real estate is very local," Conway agrees. "You require enormous local information about the investment--it is not like simply buying into a mutual fund of overseas companies." Conway knows people who have bought in Shanghai, hoping to see dramatic appreciation in their investments. But they acknowledge, she says, that their ownership cannot be taken for granted. Conway points out that--in addition to tax problems, historical restrictions, security concerns and possible devaluation--in some countries, the government can repossess your property. "It really is not for the faint of heart."
