Category: International Home Buyers

Honestly, so much has happened this week since the Fed seized mortgage giants Fannie Mae and Freddie Mac, it is hard not to feel overwhelmed as we try to absorb it all.
Financial Sector in Crisis
In a matter of days, Lehman Brothers Holdings Inc., the fourth largest investment firm in the country, went bankrupt, Bank of America bought financially-ailing Merrill Lynch, and the government stepped in to save American International Group (AIG), one of the world’s largest insurers, with an $85-billion dollar bridge loan. 

International buyers who want to purchase second homes and investment properties are not restricted in any way from buying U.S. real estate.  But financing a real estate purchase may pose a challenge for international buyers.  In some cases, foreign nationals can also face tax implications when they decide to sell property in the U.S.

“Global real estate transactions can be complex, and international buyers need the support and advice of professionals who are well-versed and know all the ins and outs,” advises Brian Meyerowitz, a buyer’s agent with Florida New Homes Realty.  

The U.S. real estate market is open to international buyers who wish to invest in vacation homes or investment property in the states.  And to many foreign nationals, the convergence of the weakened dollar, falling home prices and the vast selection of homes for sale makes it a great time for real estate investment in the U.S.

International buyers are setting their sights on Florida vacation property and investment real estate.   While 18 percent of real estate agents nationwide closed at least one home sale for international buyers in 2006, a whopping 65 percent of real estate agents in Florida sold second homes to foreign buyers during the same time period, according to the National Association of Realtors (NAR) Profile of International Home Buying Activity.

International buyers find U.S. real estate to be a good value for their money. While falling home prices and the weak dollar may have many Americans holding off on purchasing new homes, international investors are taking advantage of their increased buying power and the greater affordability and variety of available homes for sale in the U.S. real estate market.  In fact, foreign buyers account for a significant sales share of second homes in the U.S. according to the National Association of Realtors (NAR).