With the weakened U.S. dollar coupled with low interest rates and foreclosures, foreign investors are buying up real estate in large quantities particularly now as the economy is beginning to recover.
Real estate agents across the nation are seeing that foreign investor purchases have dramatically increased in the last several months.
United States residential real estate has long been attractive to foreign investors, especially due to the housing market's stability compared with other nations. However, as the dollar's value has decreased in the first half of this year, homes are now even more affordable to foreigners.
Over 150,000 residential homes and condos have been sold to international investors from May 2008 to May 2009.
Compared to the Japanese yen, the European euro and the Canadian dollar, since June, the U.S. dollar has tumbled around 10 percent against these other currencies.
Amazingly, foreign investors have paid almost entirely all cash for second homes ranging from $6 million to over $15 million.
Foreign investors are confident in the recovery of the U.S. economy as well as the housing market's revival, but they are also very happy with rock bottom home prices and a weak dollar too. While some are looking for second homes other are investing in rental properties for added income.
Not only are these investors offering to pay cash, but they are also providing down payments of 40 percent or more since financing is often difficult for them to get. Close to half the properties that international investors purchased from May 2008 to May 2009 were paid in cash.
With Florida leading the nation in international buyers, it is followed by California, Texas, and Arizona respectively.
Property I.D. is sponsoring Practical Resources on many seminars that will help Real Estate Agents with these international investors because Practical Resources is offering classes called "Attracting and Working with Domestic and Foreign Investors". Please contact your Property I.D. Sales Representative to find out about a class near you.