Many foreign buyers are taking a long-term view of the U.S. market.
Boris Kolchagov, a Bulgarian carpenter, purchased a two-bedroom
condominium in Vail, Colo., two years ago for $320,000 and saw it
increase 16% in value. He thought it was such a good investment, he's
now looking for a half-acre lot on a golf course somewhere in Colorado
where he can build a 4,000-square-foot second home for himself. "The
best place to live and invest is America," says Mr. Kolchagov, adding
that he plans to mitigate his risk by sticking to well-known resort
towns, where homes tend to hold their value over time.
Like their American counterparts, many foreigners are avoiding the
hard-hit Rust Belt: 41% bought homes in the South, while 31% were
attracted to the West. A few Sunbelt states, notably Florida,
California and Texas, are particularly popular with foreign buyers.
But balmy weather isn't the only attraction. Nancy Macaluso, a Palm
Beach, Fla., agent, says they're picking these places, and not cheaper
resort areas in developing nations, because they don't have to be
concerned about economic upheavals, political coups or general
lawlessness. "Here, they don't have to worry about their children
being kidnapped," she says.
The study also showed that international buyers are spending more
freely on houses than Americans are. The median price they paid was
$299,500, compared to $221,900 for native-born buyers. Daniel Webster
Johnson, a Breckinridge, Colo. real estate broker, says that overseas
investors are so eager to buy these days, some are keeping cash in
American banks or title companies so they can pounce immediately on a
good deal. He says that many of his clients are trying to diversify
their portfolios, or are trying to move their money away from older,
overbuilt areas, like the ski resorts of Germany, where prices have
stagnated over the past few years. Mr. Johnson has seen his
international client roster increase by 15% over the past year.
Boris Kolchagov, a Bulgarian carpenter, purchased a two-bedroom
condominium in Vail, Colo., two years ago for $320,000 and saw it
increase 16% in value. He thought it was such a good investment, he's
now looking for a half-acre lot on a golf course somewhere in Colorado
where he can build a 4,000-square-foot second home for himself. "The
best place to live and invest is America," says Mr. Kolchagov, adding
that he plans to mitigate his risk by sticking to well-known resort
towns, where homes tend to hold their value over time.
Like their American counterparts, many foreigners are avoiding the
hard-hit Rust Belt: 41% bought homes in the South, while 31% were
attracted to the West. A few Sunbelt states, notably Florida,
California and Texas, are particularly popular with foreign buyers.
But balmy weather isn't the only attraction. Nancy Macaluso, a Palm
Beach, Fla., agent, says they're picking these places, and not cheaper
resort areas in developing nations, because they don't have to be
concerned about economic upheavals, political coups or general
lawlessness. "Here, they don't have to worry about their children
being kidnapped," she says.
The study also showed that international buyers are spending more
freely on houses than Americans are. The median price they paid was
$299,500, compared to $221,900 for native-born buyers. Daniel Webster
Johnson, a Breckinridge, Colo. real estate broker, says that overseas
investors are so eager to buy these days, some are keeping cash in
American banks or title companies so they can pounce immediately on a
good deal. He says that many of his clients are trying to diversify
their portfolios, or are trying to move their money away from older,
overbuilt areas, like the ski resorts of Germany, where prices have
stagnated over the past few years. Mr. Johnson has seen his
international client roster increase by 15% over the past year.
No comments:
Post a Comment