At an international property event I attended last weekend, I discovered an interesting consideration about investing in an overseas property – namely, the issue of economies of scale. Unlike institutional or asset managers, who manage portfolios comprising entire apartment blocks, the size of the portfolio owned by your typical retail investor doesn’t justify hiring a dedicated property manager to ensure the units are in tip top shape all the time. Usually, we see retail investors grow a relatively modest portfolio of one or a small handful of apartment units – generally studios, as well as one- or two-bedroom units – where most of the rental income is going into the landlord’s pocket rather than property management services. This is a concern because seemingly small cultural differences can snowball into huge headaches. The international property event I attended was organised by FM Investment who were promoting their portfolio of Japanese properties. During a presentation by the CEO,...