Good piece in the IBD last week on foreign investment in U.S. real estate.
…“Many foreign buyers now see luxury U.S. real estate as a store of value,” said Dolly Lenz, CEO of her namesake real estate firm. “It’s like a safety deposit box with gorgeous views.”
…The Chinese were the biggest foreign buyers of U.S. real estate last year, in dollars, but Canadians ranked first in transactions, says the National Association of Realtors.
International sales reached $92.2 billion (April 2013 through March 2014), an increase of 35% from the prior 12-month period.
…“We’re seeing more buyers than ever before from China, Singapore, Malaysia and India, who are purchasing both residential and commercial property in NYC, including trophy homes,” Lenz said.
…the Ukraine and Russia has “reduced participation by the normally active Russian buyer.”
In Florida, South Americans, particularly Argentinians, have been active developing and buying residential real estate, says Peter Zalewski, principal at Condo Vultures in Miami.
Developers from Argentina are “building huge condo projects,” he said. They’re selling units to buyers from that country and getting 50% down “preconstruction.”
…Some of Ganguly’s buyers are seeking trophy homes. Others want homes for their kids to use during college and for rentals. He noted that Asian buyers plan: “They start looking for properties when the kids are really young.”
Ganguly said: “People around the world recognize that U.S. real estate is a pretty secure thing.”
(click here if chart is not observable)