Property investors eye the US market
With US property market struggling some investors see this as prime time to invest. Foreign investors see weakened dollar, lowering prices are interesting aspects of investment.
With all the negative news about US property markets, some foreign investors are seeing it as an ideal way to purchase property to invest in short or long term.
Many aspects offer a peaked interest. This includes the foreign investor's knowledge of the drop in the dollar, the lowering prices of property and the overall steady decline of interest rates here.
One way that they continue to invest is in second homes. This is particularly beneficial to the businessperson looking for a place to stay during visits to the States. Second homes are also purchased here, readily, for holiday stay. According to the National Association of Realtors, about 20 per cent of all real estate agents have sold property to foreign investors, around the country.
The drive comes from the drop of the dollar under the Euro throughout 2007 which helps US property to be less expensive. This drop in currency exchange is benefited additionally by the drop in house prices here. In contrast, these same second home buyers would need to spend much more to purchase the same style of property in Europe, especially in cities such as London and Paris. In these locations, property values have increase nearly 100 per cent.
Even with the increase in attention that foreign investors have here, there is little doubt that there is no immediate save in the property market for the US due to this increased foreign investment. According to a representative of Hammersmith Group, "Relying on foreign real estate investors is fundamentally as risky as relying on subprime mortgages. Foreign buyers aren't going to save the US housing market."