Coming from all ends of the country and around the globe investors are hot for U.S. real estate investing. Just like many savvy U.S. investors, our foreign friends are also eager to invest in U.S. real estate. Primary reason? Location of course! The U.S. has all the fundamentals for great investments.
Many want to invest for the long term and acquire multiple properties for the purpose of renting out. Others want to buy second homes and enjoy the many amenities the U.S.markets has to offer.
Some foreigners also have visa interests in mind
International investment sales of U.S property to foreign investors indeed have their own set of market drivers
- Our home values relative to income are the lowest in the entire world
- A huge interest in placing assets with well-defined and secure property rights
- A desire to diversify investments
- Great rental opportunities
- Potential vacation use has added appeal
- The security and safe haven U.S. investments provide
- Transparency of the market place
- The ease of doing business in the U.S.
The U.S. Multiple Listing Service ( MLS) which is unique and unheard of in many countries makes for easy understanding of properties and pricing.
The MLS essentially allows a real estate professional to have access to every listing within the state they reside in and /or are licensed. This allows an individual to offer the ultimate service level to a foreign buyer by exposing every property that matches buyers criteria.
The only thing a foreign buyer needs to do is identify a real estate professional they are comfortable working with. The ease of working with one person is of very high demand. Further ease in doing business here in the U.S is appealing. If you have the funds or access to financing you can buy in the U.S. this is a privilege that most countries simply do not offer.
Single family homes:
Tend to be the largest draw for both our foreign and domestic investors. Like our domestic investors, many of our foreign friends find the private space between the homes to be of large appeal as many are not accustomed to having this much space for a private property owner.
Condominiums, Villas and Townhomes:
Tend to be the second position of interest. A condominium is a large building (much like an apartment building) Townhomes and Villas tend to be similar to the Row Homes many countries are accustomed to, the primary difference is Villas tend to be 1 story structures where townhomes tend to be 2 story structures for each property owner in which you own your own living quarters (the common areas such as the lawn, the swimming pool, park area, etc is considered common areas and are taken care of by a homeowners association).
These properties are all considered to be in what we call “common interest communities” (often simply just called Condo’s) are of great appeal to the second home buyer because while they are not occupying the property these elements are all being taken care of for them by the community management.
The top 3 destination markets for second home buyers is Florida followed by California as a distant second and then Las Vegas Nevada.
The Foreign Buy and Hold Investor:
Tend to mimic investors here in the U.S. They tend to favor single family homes in emerging markets where the property values and the rental returns are most sustainable.
Whether your interest is in the U.S. for a single family home, a Condo or Townhome and regardless of which market you choose to invest in, the U.S definitely has a variety of investment options that appeal to the global market.