Do you think investing in properties in America can be beneficial to foreigners? Many wealthy people from all over the world invest in the US to diversify their investment, and stay close to family and friends overseas. Homes in Florida and California act as summer homes for snow birds in Canada and other colder countries.
According to an article on PropertyCEO.com, a community for Property Managers to share knowledge and insights relevant to Property Management, real estate transactions by foreigners in the US was over $ 108 billion, which accounts to about 8% of home sales in the United States. The numbers are for 12 months as of March 2015.
The article has also mentioned the advantages and disadvantages for both Americans and foreigners. Local buyers believe that this trend has increased home rates, which is good for sellers but not very good for buyers who have reasons to believe that in the future their properties might be valued far lesser if this trend drops and foreign investors find other international destinations that are more lucrative.
4 states – Florida, Arizona, Texas and California – account for 50% of international investments. Most of these investments come from China, Canada, India, Mexico and the United Kingdom. Moreover, most of these investments (about 55%) is made in cash. So it’s foreign money coming into America.
America has always been an open economy with immigrants making strong intellectual and financial investments in the country. Almost everybody in the States has ancestors who are immigrants. And I doubt if any sort of protectionism will work. However, there’s a huge outcry that property investments should be made difficult for foreigners. I’ll be surprised if that happens anytime soon.
The article on PropertyCEO provides us a clear picture as to how foreign investors are winning the battle of property acquisition, and the advantages and disadvantages of this trend. The website provides several articles related to property management, software, and several resources for property managers.
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