A Guide That Overviews Foreigners Who Are Investing In The U.S. Real Estate Market

The National Association of Realtors carried out a survey showing that many of the foreign nationals or international buyers invested USD 82.5 billion in the U.S.’s residential real estate market; the survey covered a 12-month time period and ended in March 2012. Now, this value of USD 82.5 billion can be equated to 4.8 percent of the total sales that happened within the country’s residential realty market.


From where do the international buyers, who invest in the U.S., belong?


It is interesting to note that the top international buyers, that year, were from India, the U.K., Mexico, Canada, and China; and these buyers have bought property in California, Texas, Florida, and Arizona. These purchased places were chiefly made as a temporary professional relocation, as a pure investment, or as a vacation home.


This write-up summarizes one factor that answers why international buyers are finding the U.S. real estate market so lucrative. However, this write-up may never be thought of as a substitute for the valuable legal and tax-related counsels that every foreign national must seek before investing in the real estate market in the U.S or before applying for foreign national mortgage loans. So, now, let us get started.


The key factor—the strengthening of the U.S. dollar


The strength of the U.S. dollar is always motivating a range of foreign nationals to invest in the nation’s real estate market. Now, the real estate market in the U.S. is more productive and appealing for foreign buyers than what it was two decades ago.


Given the high volatility in the global real estate market, the relative stability within the U.S.’s housing market, and the strengthening of U.S. dollar, it is quite probable that foreign demands for the country’s residential and commercial spaces will grow.


Further, it is noted that many Chinese and Russian buyers are interested in buying U.S. homes, and this fact is thought to be less sensitive than the typical Chinese or Russian traders who invest in the nation’s exchange rate. And that is primarily because they need to exercise complete caution while they shelter monies; this safety is indeed assured through real estate. As per research works, by investing within the U.S. real estate market, the return is more stable (up to 3 percent). (Note: This figure can change or fluctuate depending on the way the investor’s domestic economy is behaving.)


So that is it for now, readers. Now, through this write-up, you know how the strengthening of the U.S. dollar is encouraging more and more international buyers to apply for foreign national mortgages in Florida, Texas, and other parts of the country.