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The Illusion of Foreign Buyers

By
Real Estate Agent with Downing-Frye Realty, Bonita Springs, FL 676419


The Illusion of Foreign Buyers

The Illusion of Foreign Buyer’s in the Bonita Springs Real Estate Market

The headlines make for great copy - “The British Are Coming”, “International Buyers Flock to Florida”, “Foreign Buyers Scoop up Florida Real Estate”. There has been enough coverage of the alleged foreign invasion to actually convince the public that it is largely true. Many people have been led to believe that Florida is so full of Foreign Nationals buying up real estate that it could snap off and sink into the Gulf of Mexico.

Listen, I don’t doubt for one minute that we still have our usual amount of European buyers. We may even have a few more Canadian buyers. What I do doubt is a marked increase simply because the dollar is weak against the currency of a few particular countries. Just because there is leverage against a Foreign National’s currency, it doesn’t mean they are taking full advantage of it. The are many more economic conditions that influence a buyers ability and willingness to buy real estate besides the value of their currency against the US dollar.

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Comments(13)

Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Chris - You are so right that there are other economic factors to consider.  Investing just based on a weak dollar would be a stupid idea.  What if you purchase and other factors  got worst? Your investment could be worthless.
Mar 21, 2008 01:20 AM
Rosario Lewis
DDR Realty - Newburgh, NY
GRI, SRES - DDR Realty - Orange County, NY
The purpose of a headline is to sell papers. I bet the writers of articles about the "foreign invasion" know they are making a mountain out of a mole hill.
Mar 21, 2008 01:49 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

We've been hearing similar commentary, and about other areas in the US. But I haven't really seen any statistics that support, or don't, these statements. Most of the information I have heard has been anecdotal, from other agents.  It seems more of this has to do with the potential, given the drop in dollar value overseas, rather than reality. But maybe I am missing something.

Jeff

Mar 21, 2008 01:52 AM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
I guess I would rather have that head line than "foreclosures depress the market" There is always another view to each headline. I hope the foreign buyers are lining up for you.
Mar 21, 2008 02:02 AM
Susan Milner
Florida Future Realty, Inc. - Cape Coral, FL
Cape Coral Real Estate Broker, FloridaFutureAgents
Chris, it appears that we are getting many more responses (calls & emails) from buyers in the UK & Canada, at least within the past month. But it is still probably 1 out of every 10-15. Maybe I should keep track.
Mar 21, 2008 02:09 AM
Marlene Scheffer
Realty Station - Bremerton, WA
Realtor to Kitsap County, WA
Chris, you have some very good points.  Makes the headlines seem ridiculous, but what else is new?
Mar 21, 2008 05:15 PM
Matthew Heavener
ERA Heavener Realty Co. - Jacksonville, FL
Well thought out post.
Mar 21, 2008 05:37 PM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
The media is very powerful as we all know my friend and can influence the minds of the public like no other.  I learned this when I visited Honduras and Nicaragua in 1987 during the Contra War.  Great post as always.
Mar 23, 2008 05:20 AM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

CE,

Foreign investors aren`t out there purchasing overpriced condo`s on the Gulf at $500 per sq/ft.

They`re seeking investment property with a good cap rate which generates them cash.

There is no Illusion as you`ve put it. There are people investing here because of the euro vs dollar  and that is a reality. 

In fact this is what I just completed: Foreign Investors are looking at Multi Unit Rentals in Florida.

I would like your opinion,please.

  

Mar 25, 2008 12:11 AM
Summit Realty Group
Summit Realty Group- The Future of Real Estate Today! - Highlands Ranch, CO

 

 

You would be surprised as we are having a lot of foreign buyers in Colorado and in California.

Mar 25, 2008 03:13 AM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
Excellent post - once again we look at the power of the media!
Mar 25, 2008 03:32 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital
Up here they're saying it's a combination of very low prices and a low dollar that has Europeans looking at the Florida market.  We have some up here - I'm trying to brush up on my French.
Mar 25, 2008 06:17 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

I had some sellers ask me the same thing. They wanted to know how I would market their listing to European buyers. They believed that's where their buyer would be found. They also thought they could get more money for their condo by selling to a European buyer. I explained to them that our brokerage was a member of Leading Real Estate Companies of the World, and that the world wide web was just what it's called. And I explained that just because the Euro was worth more than our dollar, did not mean the Europeans were going to overpay for real estate here. 

Those sellers listed their condo with someone else. It's still on the market and it's still overpriced. 

Mar 28, 2008 05:58 PM