Foreigners Find Bargains in American Real Estate

Foreign Investors See Bargains in U.S. Real Estate As many Americans are losing their homes, foreigners are finding that it’s time to go shopping. Not so much for a home but rather a house or property at a bargain rate is what they’re interested in. News media are reporting that foreigners are finding bargains in our ailing real estate economy.

Foreign investors will be spending more money in 2009 than they did in 2008 and there are strong indications that it will be invested in the U.S., according to the Association of Foreign Investors (AFIRE). A survey released earlier this year, showed that more than 53 percent of respondents ranked the “U.S. as the country providing the most stable and secure real estate investments.” The survey also found that 37 percent of respondents believe the U.S. is the country that provides “the best opportunity for capital appreciation.” Brazil ranks next, followed by China. And the United Kingdom climbed from a ninth place spot to number four, while India fell from third place to fifth.

Foreigners from China, Thailand, Vietnam, Mexico, Europe, and South America are traveling to the U.S. to see what real estate opportunities exist in the U.S. Areas such as Las Vegas, New York, and Miami have been infiltrated with foreigners who are buying now to take advantage of their stronger currency or the opportunity to stash their cash in a dollar-dominated place.

The top cities that foreign investors are interested in are:

Washington, D.C.
New York
San Francisco
Los Angeles
Houston

What are foreign investors interested in? Here’s the list. The multi-family properties climbed the ladder to number one after two years of ranking second on the list just behind office properties.

Multi-Family
Offices
Industrial
Retail
Hotels

Real estate marketers are using the old wine-and-dine approach, creating an extravagant buzz to add to the bargain-galore hype. And it seems prospective buyers are eating it up. In some areas, as much as two-thirds of the condo buildings are owned by foreigners.

Interesting tidbit

The green movement also carries weight in investment deals. Survey respondents (11 percent) said that green attributes influenced their decision “significantly so” to purchase a property and while even more (60 percent) said “somewhat so”—because green attributes are worth a greater rental premium.

The survey also found that investors think finding attractive U.S. investment properties is getting easier. The lowest percentage in five years (fewer than 20 percent) reported that it was “very difficult” to find attractive properties. In 2004 the figure was 59.4 percent. And in 2002, the study reported that respondents said “finding attractive opportunities was the greatest challenge to investing in the U.S.” Today, 7 percent of the respondents said attractive opportunities were very easy to find, while 18 percent said they’re “somewhat easy”.

On the whole, according to the survey, look for foreign real estate lenders to increase lending by 54 percent globally and by 58 percent in the U.S. Equity investors will increase their investment activity by 40 percent globally and by 73 percent in the U.S.

The survey was the 17^th annual survey taken by the members of AFIRE.

Learn to invest in real estate using your IRA or Solo 401(k), visit www.Nabers.com

Phoebe Chongchua
		About the author:
		Phoebe Chongchua is an award-winning journalist who appears on TV, in print, and on the Internet. She's a former ABC affiliate News Reporter/Newscaster who founded Live Fit Magazine in 2004, recognizing how the journalism industry is rapidly moving online. The magazine has evolved frrom producing content only for LFM to producing much-needed video feature news stories and documentaries for companies and associations. Phoebe discovered an unfulfilled niche market and expanded LFM in order to meet the needs of a growing marektplace. Her clients are happy she did! Live Fit Magazine produces video news stories that entice viewing audiences to watch the video, spread the message, buy the product or visit the establishment. It's a creative, credible approach to marketing companies, products, and services. Few companies offer what Live Fit Magazine can do for your company in a single feature video story. Phoebe works with clients to seamlessly integrate their newly produced video into their current marketing materials. She offers expert advice on new marketing strategies and call-to-action campaigns. Her innovative efforts keep companies positioned for success and their customers regularly watching new and informative videos.
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