Overseas buyers seek shelter in U.S. real estate

Marketwatch ^ | 06/29/2012 | Howard Gold

[SeekAndFind]

As July 4 approaches, Americans are anxious about the economy, despise Congress and can’t work up much enthusiasm (to say the least) about either presidential candidate. Investors are still avoiding U.S.-based stocks like the plague.

But one group of people truly is bullish on America and they’re putting their money where their mouths are.

Buyers from all over the world are snapping up U.S. real estate the way prospective brides yanked discount wedding gowns off the racks at those Filene’s Basement sales of yore.

Yes, some of the buyers are the super rich, like the Russian billionaire who allegedly bought an $88-million New York penthouse for his daughter. But others — upper-middle-class professionals and small business owners — are scooping up condos, townhouses and single-family homes. They’re buying in suburbs as well as cities. Nearly 40% are using their new homes as primary residences.

In a recent report, the National Association of Realtors said international sales hit $82.5 billion in the 12 months ending March 31, up from $66.4 billion the previous year. Canadians were by far the most frequent buyers, representing one out of every four dollars of international real estate purchased. Chinese nationals, Mexicans, Brits and Indians followed.

Half of all foreign purchases were made in four states: Florida (which got 26%), California, Arizona and Texas. International buyers have helped revive the once-moribund real estate markets of Phoenix and Miami. And most of them pay cold, hard cash.

U.S. real estate can be a great investment for foreign nationals. The real estate crash that began several years ago has produced some extraordinary bargains.

[SeekAndFind]

But although their purchase decisions are primarily economic, the NAR and two real estate executives I spoke with said international buyers view the U.S. as a safe haven for their money, governed by the rule of law and respect for property rights. Nearly a third of foreign purchasers viewed U.S. real estate as a “secure investment.”

[blam]

Anticipating inflation, hyperinflation?

[blam]

"Anticipating inflation, hyperinflation?"

Well...

Maybe not:

The Odds Of A Deflationary Global Recession Are Rising

[Kozak]

But although their purchase decisions are primarily economic, the NAR and two real estate executives I spoke with said international buyers view the U.S. as a safe haven for their money, governed by the rule of law and respect for property rights. Nearly a third of foreign purchasers viewed U.S. real estate as a “secure investment.”

Then they haven't been paying attention here lately.....

[NurdlyPeon]

As a wise man once said: stocks may rise and fall, utilities crumble to dust, people are no damn good, but they will always need land, and they’ll pay through the nose to get it.

[winodog]

And goverment.com will tax them out of it

[em2vn]

Not a good decision. Obama is clearly following the South African approach of Nelson Mandela. That will require the redistribution of farm ground to blacks. I think Obama intends to redistribute all real estate, not just farm ground.