Foreign real estate investors come ashore in the US – What is actually luring them?
Posted by Waterfront Properties on Saturday, September 24th, 2011 at 6:42pm.According to a recent report by the National Association of Realtors, they have shown some statistics that prove that the interest among the home buyers around the world to purchase US properties has increased with time. The association is also of the opinion that the tie-ups between the US real estate investment managers and the investors throughout the world are all going to grow rapidly in 2011. The most probable reason behind such a reaction by the foreign real estate investors is their expectation of the commercial real estate recovery. With the spur in the number of commercial real estate properties, there will also be an increase in the application for mortgage loans within the nation and this may in turn boost the US mortgage industry.
The recent reviews published by the 2011 Profile of International Home Buying Activity revealed that the residential sales by the foreign buyers totaled $85 billion in March, 2011, a figure that was up by $67 billion a year back. An increase of $18 billion has been the largest increase in the recent years. The average price of the US property that was purchased by any foreign investor was $316,000 compared to the US average property price of $217,000. Moreover, 2/3rds of all the international purchases had been reported as an all-cash transaction.
By stating the phrase ‘international buyers’ it meant homebuyers from 70 different countries and this number was also up from 52 in the year 2010. In 2011, Canada has been again ranked as the top country with 25% sales for the 4th consecutive year followed by China, Mexico, the UK and India. It is often seen that the foreign buyers find the US properties less expensive than the ones that they get in other countries. Most financial experts are also of the opinion that the US properties also offer to be a safe investment and they also offer varied rental opportunities and long-term potential for appreciation. Another new trend that is seen among the foreign investors is to purchase US properties in college town so that their kids can go to college while staying in the same place.
There are several factors that contribute to the rise in the number of foreign investors in the US real estate market. A majority of realtors’ report that the frequent changes in the value of the US dollar has always had a strong impact on the foreign real estate business. The other factor that can be cited to be the reason for the growth of foreign investors in the US is that most of them think that there is a valued level of desirability when it comes to purchasing a real estate property in the US. The apparent emergence of a quick economic recovery is also sparking the numbers.
Therefore, as the United States is proved to be the most popular foreign locale for the investors throughout the globe, the Real Estate Revitalization Act has made it even easier for the foreign investors to seek out a particular property investment. Are you too feeling intrigued after going through the concerns? What are you waiting for? Look for appropriate mortgage loans before you think of buying a property in the US.
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