The short answer is yes. With the value of the American dollar plummeting to unusual lows compared to the strength of foreign currency, we’ve got international investors foaming at the mouth to snatch up our “bargain” real estate.
William Thompson, vice president of sales at Newfound Property International in London, said that, for example, luxury properties at the 200-unit Ocean's Edge Resort on the Caribbean island of St. Kitts are selling quickly, thanks in large part to Britons who are taking advantage of a favorable exchange rate.
"These buyers are taking a bet on the currency," he said. "I can't predict where the dollar is going, but it seems to me to be a very nice time to buy if you can use pounds. And it could be very good for buyers if they use pounds to buy a dollar property and then the dollar strengthens.”
The majority of international buyers are from Europe and Asia. European buyers tend to show interest mainly on the east coast, particularly Florida and New York, whereas Asian investors are drawn more to the west coast. The main reason for this, of course, is simply location – 5 hours less of a plane ride is a much more attractive vacation destination. Studies show most of these global buyers are shopping for a vacation home, however, almost 20% have plans to use the property as a long term rental investment.
While it may seem like a blessing at first, to have someone, anyone, igniting our stagnant real estate market, there are those who believe it might hurt us in the long run. The two main concerns are that first of all, foreign ownership of our real estate might compromise our national security and sovereignty, and second, that our economy will suffer in the long run.
The natural progression typically follows that real estate ownership leads to commercial and industrial control, which could have an impact on everything from employment rates to international trade. These fears are understandable, considering the sorry state of our international reputation and the fear of recession lurking around the corner.
It is important however, to keep in mind that that the capital received from the American home sellers will most likely stay in the country and be reinvested back into the US economy. This could generate future growth and stability and actually prevent the rumored recession from ever taking place.
I think the bottom line here is that now is the perfect time to buy property in the United States! Whether you are a US citizen or an international buyer, you cannot go wrong if you take advantage of our bottomed-out prices. We can only go up from here.
Comments(3)