Foreign Investors Bet Big on USA Real Estate


Foreign Investors Bet Big on USA Real Estate

Once the realm of billionaires, oligarchs, foreign dictators, and wealthy families; international property investment has rapidly become a common vehicle for savvy investors to hedge risk and profit from investment opportunities simply unavailable in their place of residence. As “fear of the unknown” regarding foreign property investment subsides, the investment world is truly moving away from restrictive local based investing towards a global marketplace where even small investors are in a position to capitalise on global opportunities. As you may have guessed – the country leading this global trend of foreign property investment is the USA.
 

Why are these investors betting so big on the USA?

  • USA has a reputation as a safe haven for investors
  • Transparent legal and tax system
  • Mitigate risk by holding assets in multiple jurisdictions
  • Strong indication that property growth is set to continue
  • Many other reasons…

Which countries are showing the most interest in USA properties?

10. Germany

  • Growth in prospective homebuyers: 95.2%
  • Share of int’l prospective buyers: 2.6% (7th highest)
  • GDP per capita: $39,468 (18th highest)

While the Eurozone has had its troubles over the past few years, Germany has continued to see growth far and above its neighbours. The relatively high income of many Germans and other factors are driving Germans to USA property.

9. Sweden

  • Growth in prospective homebuyers: 100.0%
  • Share of int’l prospective buyers: 2.0% (9th highest)
  • GDP per capita: $40,870 (14th highest)

Home prices in Sweden are considered high and potentially unsustainable by many Swedes. Whether it is these economic trends or simply case of trying the escape the long dark Scandinavian winters, Swedes are jumping head first into US property investment.

8. Canada

  • Growth in prospective homebuyers: 107.7%
  • Share of int’l prospective buyers: 45.0% (the highest)
  • GDP per capita: $43,146 (9th highest)

Canadians historically purchase the most US property of any country in the world. The border is close, the weather is warm, and Canadian citizens are privileged in regards to trade of all kinds with the USA.

7. Australia

  • Growth in prospective homebuyers: 121.9%
  • Share of int’l prospective buyers: 11.0% (3rd highest)
  • GDP per capita: $43,042 (10th highest)

Australians are from a lucky country with strong economic growth and high disposable incomes. However, many Australians are priced out of the Australian property market, in turn making US property investment very attractive. Others are mindful that Australian house prices are considered unsustainable by many leading economists and are looking to hedge their risk with US based assets.

6. United Kingdom

  • Growth in prospective homebuyers: 153.8%
  • Share of int’l prospective buyers: 12.1% (2nd highest)
  • GDP per capita: $37,299 (21st highest)

It’s said that Brits largely see US property as a safe and profitable investment. Whatever the factors may be, Brits are only second behind Canada in terms of international prospective buyers.

5. Italy

  • Growth in prospective homebuyers: 178.4%
  • Share of int’l prospective buyers: 1.9% (10th highest)
  • GDP per capita: $29,598 (34th highest)

The faltering economy in Italy is certainly driving investors to seek greener pastures. This combined with the fact that Italy is home to a number of very wealthy citizens is driving investment.

4. France

  • Growth in prospective homebuyers: 190.0%
  • Share of int’l prospective buyers: 2.8% (6th highest)
  • GDP per capita: $35,680 (24th highest)

With a flat lining economy and a socialist president with controversial policies, many wealthy French are looking to move their wealth offshore.

3. Hong Kong and China

  • Growth in prospective homebuyers: 254.2%
  • Share of int’l prospective buyers: 4.1% (4th highest)
  • GDP per capita: $52,687 (7th highest)

China’s residents are buying property all over the world at record pace. A booming economy, many new wealthy Chinese, and a cultural theme of diversification and wealth protection appear to contributing factors driving Chinese demand.

2. Switzerland

  • Growth in prospective homebuyers: 269.7%
  • Share of int’l prospective buyers: 2.1% (8th highest)
  • GDP per capita: $45,999 (8th highest)

Swiss interest in US property has risen dramatically over the last few years. Perhaps this is linked to a 27% appreciation in the Swiss franc vs the US Dollar.

1. United Arab Emirates

  • Growth in prospective homebuyers: 352.2%
  • Share of int’l prospective buyers: 1.1% (12th highest)
  • GDP per capita: $29,877 (31st highest)

There is no clear reason why UAE residents are interested in US property, but interest is growing at a blistering pace of 352.2%. Perhaps it’s the international nature of Dubai, perhaps it’s the wealthy population, what ever it is they are buying up big.


We take the hard work and risk out of investing in the USA.


request a consultation free video course

Request A Consultation






Request A Consultation