4 Reasons Foreigners Buy American Real Estate
American homes are not only desired by Americans; many foreign nationals are increasingly attracted to U.S. residential real estate. Whether it is for business or pleasure, foreign buyers want American homes, and many of them are bringing their investments to South Florida.
Whether a home buyer is American or comes from another country, an experienced South Florida real estate professional can guide them to their dream home. To help potential foreign clients, our team at Stein Posner has researched some reasons why foreign home buyers are looking for homes in America, specifically in our Sunshine State.
1. They Want to Getaway
Many foreign clients desire to find second homes in our tropical local area. Sun seekers often come from neighboring country Canada or America’s historical partner, the United Kingdom. Both countries are major sources of foreign home buyers. Florida is the top state for international buyers with 21 percent of all foreign real estate purchases in the U.S.
2. They Seek Stable Investments
The emerging markets around the world, especially those in Asia, have resulted in more wealthy individuals who want to put their money to work in America, and many choose to invest in residential real estate. One reason international buyers, especially those from China and India, are buying American homes is because they want their wealth to be protected by the U.S. market’s relative stability. Though those two countries’ markets have been experiencing exponential growth, international home buyers believe they offer less security than America’s market. Incidents like China’s recent stock market slowing are convincing more foreigners to invest their wealth in safe havens such as U.S. real estate. Latin American home buyers join their Asian counterparts in this regard. Historically, they have represented a very strong group of foreign investors when trying to protect their wealth from the more politically and economically turbulent conditions of their home countries.
3. They Want American Opportunities
Asian, Latin American, and other foreign real estate clients also buy U.S. homes in order to access American jobs and education. Many home buyers, especially those from Asia, send their children to America in order to obtain a top class education. The properties they buy will serve as the residences of their children while they attend school. Properties in college towns are likely targets for these types of clients. Another type of foreign client chooses to buy an American home for professional reasons. Due to limited restrictions, businesses from South America and Mexico often establish offices in the U.S. Many executives and other employees will be moved to these new office locations and therefore will have to buy houses nearby.
4. Many Are From Neighboring Countries
According to the 2015 Profile of International Home Buyers, conducted by the Miami Association of Realtors and the National Association of Realtors (NAR), these are the top seven countries of origin for foreign home buyers purchasing properties in the South Florida market.
- France and Italy
What most of these countries have in common with each other is their close proximity to the U.S. Most foreign clients seeking South Florida real estate will come from North America and South America. European and Chinese clients are less common but are still a major segment of the consumer base.
Foreign home buyers were a major force behind the South Florida real estate market in 2015; they accounted for 36 percent, $6.1 billion of total sales volume. These purchasers are expected to continue strengthening both the local and national markets in the coming year. An experienced South Florida real estate professional can customize his/her services to accommodate the needs and wants of international clients.
If you are an international home buyer in the market for a home in South Florida, call us today to find out how we can help meet your home buying goals.