17 Nov Foreign Investment in U.S. Real Estate Ramps Up
Investment in U.S. real estate is a booming business. According to The Investor, “the U.S. real estate market remains a magnet for offshore investors with figures for the first half of 2017 showing the country continues to be the world’s leading recipient of cross-border capital, attracting US $19.8 billion of foreign investment.”
Why is the US real estate market so attractive to investors from around the world, and how can those investors find success in local real estate?
Why U.S. Real Estate is Booming
Some of the top reasons listed for why the U.S. is an intriguing and exciting market for investors include:
- The U.S. has many different opportunities, while investment options in foreign investors’ home countries may be more limited.
- It’s liquid, so that means that it’s easy to make buying choices.
- There’s a group of engaged investors. Investing in real estate is part of the culture.
- In some markets, Canada for instance, property prices have skyrocketed, making the U.S. a better choice for property investors.
- The U.S. be more stable than Europe, which has the insecurity of economic failures and Brexit standing over all of its investments. Investors continue to feel that the U.S. is a secure place to invest.
Who’s Buying U.S. Real Estate?
While historically, Canadian neighbors to the north have invested in U.S. real estate, today that pool of investors has diversified. Now, there are buyers from the Asia-Pacific region and Europe, particularly Germany, who are taking a deeper interest in American properties. Canadians are still the largest single source of investors, but nearly half of the offshore property acquisitions came from a number of different Asian countries. Some countries have reduced restrictions on capital investments in foreign countries, making it simpler for these investors to look to the U.S. for opportunities.
Where Are Investors Buying Property?
Investors aren’t buying everywhere. According to Realty Biz, “almost half of all foreign sales were in California, Florida and Texas.” Seattle’s property markets are also moving quickly, since the tech boom has driven more and more owners and tenants to the city to work in that growing industry. Mild climates are also more popular investments than cold climates.
The Benefits of Working With a Local Property Management Company
If you’re considering an investment in U.S. real estate, working with a local property management company can help you understand the local market and the local culture.
- A property management company understands the local property market and knows what is attractive to tenants. The company can easily create property advertisements and descriptions that have a high impact on prospective tenants.
- A property management company can help you find tenants and make sure that they are the right fit, making life easier for you if you don’t live in that city. It can smooth over cultural differences that could make it harder to advertise, find tenants, and organize property management.
- A property management company has local contacts for the technical side of managing a property. From plumbers to gardeners, you can rely on local contacts to do much of the work of maintaining your property, but you need to have a local property management company to oversee the work to ensure that there is good quality control.
At Lori Gill and Associates, we want to make your experience of buying and managing Seattle real estate one that you enjoy. Find new tenants, manage tenant and property issues, and understand Seattle rentals better by working with a local property management company. Contact Lori Gill and Associates to find out how we can help you build and manage your property portfolio.