Foreign investors are looking to the United States in a big way when it comes to real estate investments in 2011. At least that’s the conclusion of a recent poll by the Association of Foreign Investors in Real Estate (AFIRE), who published their findings that four times as many members were interested in American real estate as the next most popular choice, Britain.
But why are Australians, in particular, fascinated with owning a bit of the Yankee Kingdom? First you should realize that the Australian dollar just passed the United States dollar in value on the worldwide market for the first time since 1982. Good for them. Bad for us. Another shot to the solar plexus of our economic stature. A weak US dollar is combining with low mortgage interest rates to send the Aussies through the roof with enthusiasm for buying American real estate.
Home grown property investors know that, in the wake of the housing crisis, now is the opportunity of a lifetime to buy real estate. Savvy Aussie investors are no different. They’ve been paying attention to Uncle Sam teetering this way and that and have decided it’s time to step in and buy as much as possible.
Chew on this number. The average US median home price has declined 26% since June 2007. Can anyone say bargain? Can anyone say steal? Any investor with access to money should be scouring markets like Atlanta, Dallas, Indianapolis, Denver, Orlando, and Phoenix for potential income properties. While it’s impossible to reliably pick market bottoms, these areas are starting to show an uptick in demand, and the real estate selection is incredible.
Australian investment groups like Property Women have already arranged get acquainted tours of places like Florida. If you ever had a thought about getting into the income property business, now would be a good time. Tomorrow might be too late because there’s liable to be a whole slew of foreign landlords with cool accents and really large cans of beer, all kicking back and tossing a shrimp or twelve on the barbie.
This is one party you don’t want to miss.
The Bonus Commissions Team
Flickr / robinmcnicoll