Florida Mortgage | Foreign National Homebuyers: Europe has come calling!

Real Estate Agent with THE PODGURSKY GROUP @ Re/Max Direct



Wow... the Sun Sentinel has finally caught wind of the Europeans that are buying en masse in South and Central Florida these days!

 The article speaks of why Western and Northern Europeans are growing fonder of the area for both the lifestyle and climate.

They printed this map showing that most of the European Buyers are from the UK

There are also many from Denmark and Holland.

Right now, Mortgages for Foreign Nationals are at an all time high.  It is easier now than it has been in years to get financing at attractive rates.

That was actually a point missed by the journalists.  Loan Programs are available from far more banks and lenders.  Also there are new options in foreign exchange that are making the conversion of funds that much quicker and easier. 

 Some of the other factors that are influencing the current investment boom is the strong Euro.  Based on the Dollar, the Euro is dominant... and the British Sterling is even stronger.

So what does this mean to Europeans?  It means they're making much more on their investments than US citizens. 

How?  Foreign Exchange Rate Hedging...

The Dollar has long been an international standard in currency.  Even people with stronger currency have a tendency to sock some away in US currency.  It was actually causing a panic a few years ago when the US believed that so many bills were out of circulation and sitting in foreign floorboards and safes that we would eventually run out ourselves.

  • The Dollar has also been volatile - as volatile as our politics and financial markets.
  • As the dollar has dipped - much like a stock, foreign investors have bought the dollar. 
  • As the dollar has recovered - the investors would sell the dollar back and take the profits.
  • So... while the dollar is LOW, investors are buying up Dollars with their Euros. 

Then they buy a property here in the US. 

Over time, the property itself increases in value.  The dollar also becomes stronger over time as we recover economically. 

Then when the foreign investor sells the property, they make a profit in appreciation.  They then take the Dollars and exchange them for Euros and make a profit on the appreciated Dollar!

So if they buy the US Dollar and the House. 

  • They put $100,000 down on a $500,000 house (20%).
  • The House appreciates 15% over 5 years to $575,000.
  • and the Dollar gains 5%, to $105,000 (equity CAN appreciate in this instance).
  • The combined profit is $80,000 on $100,000 invested or 80% in 5 years!
  • subtract out the debt service and depreciation to get a true IRR

How's that for some fancy European Math!

So... who wants to start marketing overseas with me??

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David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

David...  nice post. As you stated, it has been easier for foreign nationals to get mortgages. And as Ben mentioned, it does look like your put some time into this...

                                                                                                               jeff belonger

Apr 11, 2007 02:14 AM #5
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!
thanks... it has been brewing for months
Apr 11, 2007 02:19 AM #6
DeJuan White
if you guys round up the foreign investors i have 7 attractive developments with incentives... if you guys know lenders you can split em up
Apr 13, 2007 05:00 AM #7
Robert D. Ashby
Robert Ashby Photography - Miramar, FL


Maybe we should work together.  I literally fly to many of the islands, South America, and Central America.  Every time I go there and stay overnight, I talk with the hotels and try to develop connections.  Sometimes it pays off. 

I used to do the same thing in Europe except I was usually too tired by the time I got over there.  Now that I am flying again, I will begin my marketing campaigns for foreigners again.  Kind of cool when you can tell a prospect that you will fly there and meet them personally to get their transaction going.

Good post.

Apr 16, 2007 03:09 PM #8
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Amen David!  I am speaking so many languages in emails these days, I can't keep it straight:)  Thanks for a great post...VERY good information!
Apr 19, 2007 10:21 AM #9
Aimee Ghimire
Phoenix Home Loan Expert (www.aimeeloans.com) - Phoenix, AZ

Hello David,

Don't forget Canada. I know lenders who can use Canadian credit reports. I done loans for Canadians moving to Arizona and I've often thought of doing some marketing there.

Europe maybe be the bigger market!

Good luck!

Apr 19, 2007 11:22 AM #10
Tchaka Owen
Galleria International Realty - Hollywood, FL

David, I'm going to follow up with another response because I just saw something on CNBC saying that the Pound is now worth over USD2!  I don't think the dollar's been that weak since maybe the early 80s?  Combined with housing prices having adjusted lower, it certainly is a good time for Europeans to buy.  I'm not sure how Latin American currencies are doing against the dollar so I can't comment there.

- Tchaka 


Apr 19, 2007 07:16 PM #11
Jairo Malaver
Bilingual Marketing Group LLC - Sebastopol, CA

David,  this is not the only time i've heard about this investment moves.  In fact, i am going to pass this to one of my clients in south Florida.  Great blog

Geo Target, Pay Per Click in different languages could work for you.  CPC will drop down and CTR will improve.  Visit my website. 

May 18, 2007 04:46 AM #12
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

Thanks Jairo

I will check out your website

by the way - honeymoon was 1/2 vegas 1/2 sonoma... Sonoma's beautiful... we were in the city - at the Lodge ...

May 18, 2007 04:50 AM #13
David Avery
First Rate Mortgage - New Albany, IN
Great insight, thank for the info!!!
Aug 23, 2007 05:37 AM #14
Jacqueline Fortier
JC Penny Realty - Davenport, FL
Homes for Sale in Central Florida

Hello David,

Great Blog. That is my niche.  I work with people from the U.K. to find vacation homes. I keep daily track of the exchange rate to make sure to pass it on to whoever I am speaking with or e-mailing that day. Last week the exchange went up to $2.04 per pound.  Today it is at $1.99.

I have made some great friends and contacts from across the pond!

Aug 23, 2007 03:03 PM #15
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor
I see a lot of them coming too; we get them on our web site and when my partner makes his semi-annual marketing trips overthe big pond-
Sep 09, 2007 01:15 PM #16
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
Great blog I love the sample equation that was really helpful. I am staring my international marketing campaign in January 2008 let me know what your plans are, maybe we can partner up and share expenses.
Dec 20, 2007 12:42 PM #17
Can anyone tell me who does lending on Foreign National condotels in FL? Several would be great!
Mar 04, 2008 04:28 AM #18
george herring

i have 4 beautiful beachfront lots in the florida panhandle (herringproperties.us) i MUST sell!! any ideas om marketing to canada, europe, or even usa? ANY advice would e greatly appreciated, thanks, george

Jul 20, 2008 05:32 AM #19

I need California lenders for Foreign Nationals.  Do you know of any lenders that will do Calif properties?  I notice on the internet it all seems to be in Florida.Thanks!!

Sep 24, 2008 04:05 PM #20
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Working with two European couples right now... both cash deals though which is even sweeter.  However, it'll be good to know someone who is accustomed to mortgage lending to foreigners... got you bookmarked for future reference!

Oct 19, 2008 01:14 PM #21
Mobile Austin Notary
Apostille/Authentication/Embassy Legalization, Notary Public, Loan Signing Agent & Process Server Services - Austin, TX

Your website was great.


Nov 26, 2008 03:03 PM #22
Brad Calef
Coco Plum Realtors - Key Colony Beach, FL

Hi David


Thats a fabulous breakdown!  I am going to keep your details handy as you have a frim and knowledgeable grip on this market.


I have seen a continuing increase in "European Vacationers" in the Florida Keys and many are checking out the environs to see if our area is a fit to their lifestyle.  UK continues to domainate in that area but I also see quite a bit of Scandinavian activity.

Jul 28, 2009 03:54 AM #23
Justine Assal

Please follow our blog for the latest news on foreign national mortgages http://www.acmhomeloans.com/MyBlog

News on the market in 2010

Apr 12, 2010 05:59 AM #25
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THE PODGURSKY GROUP - Make the Right Move!
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