U.S. Real Estate Property Investment: Why Are Foreigners Interested?
In recent years, there have been significant increases in the number of foreign interests seeking real estate property investment opportunity in the United States. Typically, the source of this interest is European business owners, executives, and wealthy entrepreneurs of retirement age. Although, there are some indicators that Japanese interests are beginning to make their presence known as well. Even though many of the reasons for seeking U.S. investment property involve business relocation, it is plain to see that an even larger percentage of these investors have retirement in mind and are looking at the United States as a place to spend their golden years.
Foreign investors understand clearly and want to take advantage of the benefits of pursuing real estate investment property in the U.S. The concept that governs their choices is the desire to save money and gain access to better quality services to help them achieve their financial and retirement goals. There are definite factors that make investment in the U.S. real estate market very attractive for investors living in foreign countries. These factors are all related to the market and include the currency exchange rates, fixed mortgage rates, as well the flexibility and size of the financial market compared to smaller European or Asian markets.
The floating nature of the current U.S. exchange rating system makes it much easier for foreign investors to purchase properties at a profit. This, obviously, is a good reason for any European investor to start searching for properties. The euro has buying power equivalent to approximately $1.38 for every dollar. Another key element is the nature of the U.S. fixed mortgage. As any European investor can attest, the rates of similar types of mortgage loans can be highly volatile and not really worth serious investment in over time. The stability of a 30-year fixed rate is a real boon to these investors and they are ready to jump on them.
The size, stability, and flexibility of the financial market in the United States have probably the largest impact. When foreign investors express their interest in U.S. real estate property investment, many of the reasons are based upon their prior experiences with their own markets. Foreign markets have far more restrictions on how their real estate system works and this can hinder the opportunities of many investors. Factors like tariff restrictions can also lead investors to make the move to the free and stronger markets of the U.S.
It seems that the old maxim about the United States is still true in the minds of many people in the world. It is a truly a "land of opportunity," and this goes for real estate property investment as well as anything else.
About the author: Sean Rasmussen is the webmaster and founder of Universal Wealth Creation. Copyright © 2004 - 2008 Universal Wealth Creation |
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