Weak Dollar Is a Huge Draw for Foreign Investors in US Real Estate
The weak US dollar has been good news for real estate. Taking
advantage of the favorable conversion rates, foreign investors
are eagerly picking up real estate in major cities across the
US. Who is buying and where are they investing?
WHO IS INVESTING?
In recent years the US real estate market has seen the highest
amount of investing from foreign investors in Germany, Britain,
Canada, Japan and the Netherlands. Germany was the strongest
player in 2004 reporting over $4 billion in investments for that
year.
Where are they buying? In the past Europeans were drawn to East
Coast properties and Asians to the West Coast. Now, because of
the lower interest mortgages and a weak dollar, foreign
investors are picking up property, commercial and residential,
in all major US cities, including Chicago and Las Vegas.
CANADIANS AND AUSTRALIANS BENEFITING TOO
Even neighbors north of the border in Canada are seeing the
benefits. Although the Canadian dollar has been weaker than the
US dollar for years, many Canadians own vacation homes in the
US, particularly in Arizona. They are one of the highest volume
investors in the US real estate market. Whether buying or
selling, Canadians are enjoying stronger purchasing power while
the US dollar remains low.
Some Canadians, instead of buying, are following the lead of
foreign investors who are selling current US properties in
preparation for buying at an even better rate if the US dollar
continues to fall.
While Germans are slowing down in the volume of investments due
to recent caps, Australians are picking things up. Australia,
with one of the largest pension funds in the world, must look
beyond their own real estate market for investment
opportunities. Investing in US real estate permits them to
invest their huge national pension funds into diversified
holdings.
HOW LONG WILL IT LAST?
Although the current mortgage rates are an appealing draw, they
will not remain low indefinitely. However, lower priced
properties such as foreclosures would make the financial
investment potentially lucrative for foreign investors despite
the interest rates as long as the dollar remains low.
Foreign investors looking for long run profits anticipate an
increase in the US dollar as an incentive to buy. Investing
while the euro is strong and the US dollar is weak means they
can pick up real estate for a relatively low investment. Already
some countries are seeing up to a 35% discount based on the
favorable exchange rates. However, the aim is to hold the
property until the US dollar is strong and then the conversion
to euro would be highly profitable.
With the availability of properties online it is easier than
ever for investors to find properties without crossing an ocean.
Some of the best deals, such as foreclosures, can be researched
and purchased without coming to the US. This makes investing in
US real estate a great opportunity for investors no matter where
they live.
Copyright (C) 2005 A1-Foreclosure.com
About:
More free information on investing in REO free foreclosure listings.
