A weak US dollar and a drop in US home prices are luring foreign investors to the U.S. real estate market. The U.S. dollar has dropped to its lowest level against the European Euro, currently priced at $1.47.
A recent article in "The Olympian" newspaper reports:
..."European investment is likely to pick up," said Mark Vitner, chief economist for Charlotte, N.C.-based Wachovia Corp. "Now is the time to come over and take advantage."
...Some mortgage brokers are already seeing a boost in inquiries about buying property from overseas. Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com, said the number of inquiries he's received from outside the U.S. is probably five to 10 times larger than it was a year ago.
http://www.theolympian.com/business/story/268314.html
In a recent UN Survey on global foreign direct investment destinations, the United States ranked third behind China and India.
Foreign direct investment (FDI) flows are expected to increase over the next three years, according to the World Investment Prospects Survey 2007-2009, conducted by the United Nations Conference on Trade and Development (UNCTAD).
So could the next client be a foreign investor?
If you do business in the New York and Chicago areas, the chances are very likely, since these are popular U.S. areas for businesses to locate to. Increasingly California and Florida have become favorite foreign investment destinations, due to their "resort value" and due to the lowered home prices resulting from the pressure of the U.S. slowdown and sub-prime market mess.
How do you prepare for dealing with a foreign investor?
- Read up on the country your client is from. Country memos at http://globaledge.msu.edu/countryInsights/ offer a brief synopses of each country, providing an overview of the major statistics, trade information, and country background notes.
- Because cross cultural differences can make or break a business deal, take a few minutes to review the business etiquette and customs in the Kwintessentials Cross Cultural Solutions country profiles , before you begin working with a client or customer from outside the U.S.
- Work closely with the client's lender, to be aware of any special requirements and conditions.
Realtors with foreign language skills, might want to capitalize on the investment trend and advertise their services in foreign publications.
Sandy Nelson
Full Service Realtor
for the Olympia, WA Real Estate Market
www.sandynelsonrealestate.com
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