buyers declined to 14 percent of trans- actions. Purchases by buyers from India increased to 8 percent, while purchases from Mexico held steady at about 9 percent. Purchases from the United Kingdom accounted for 4 percent, down from 9 percent in 2010. There’s an active debate about whether foreign real estate investment helps or hinders the U.S. economy. One expert who works with international investors believes that we have international real estate investors to thank for pulling us out of the recent economic downturn. “You know, we had the Great Recession, and if it wasn’t for international money coming in, we could still be in a Great Recession,” said RJ Palano, real estate investor and owner of BuyCashFlowProperties.com. And while that debate simmers, foreign investors show no sign of losing their ar-
dor for American real estate. Here’s a look at why and what they’re buying.
The strong economy that Cadman mentioned is the second major factor that draws investors to U.S. real estate. Americans may grouse about their econ- omy, but it’s still the world’s largest and viewed as very stable. It also presents real estate investment opportunities most other countries can’t match. Take Australia, for example. “I think the average home price over there is like $350,000, and the amount of rent they can get is not enough to really make the numbers work,” said Craig Jennings, president and founder of BuyMemphisNow.com. Jennings added that Australians can buy several $100,000 U.S. houses for the price of one house in their home country. “To them, that seems unbelievably cheap,” Jennings said. Lastly, American real estate companies that cater to international investors have made it easier for international investors
WHYAMERICA? There are several reasons why inter- national investors crave U.S. real estate. Combining all of the factors makes American real estate a compelling buy. International investors purchase U.S. real estate for the same reason bond investors buy U.S. Treasury bonds when they’re nervous about the state of the economy: safety. “From the Canadian per- spective, we view American real estate as relatively safe. The rules surrounding all of your property are well defined, and the economy is viewed as being strong and stable,” said Travis Cadman, president of Investar USA, a Canadian company that provides turnkey real estate investments in the United States.
thinkrealty . com / mag | 15
Made with FlippingBook Online document