By Chad Creveling, CFA, and Peggy Creveling, CFA
Which investment would you rather own?
- An investment in the market that has earned an average annual return of 6% for the past five years but has just plummeted by 20%.
- An equivalent investment in a property, 80% funded by a 30-year, 4% fixed-rate mortgage, which after five years is worth 20% more than you paid for it.
If you’re like most people, you'd choose the property, hands down.
But is that really the best choice for expat investors? Let's look at the numbers.