The U.S. real estate market is seeing a surge in foreign buyers, as reported by The Wall Street Journal. The COVID-19 pandemic had caused a lull in overseas investments, but now buyers are back and actively purchasing expensive homes, keeping realtors happy.
One reason for this trend is the socio-political issues and crises in other countries. Brazil, for instance, saw a rise in buyers even before the attempted coup in the name of Jair Bolsonaro. Europeans are also seeking a fresh start in the U.S. due to the Russian-Ukrainian War and food and energy crises elsewhere. Meanwhile, China’s zero Covid policy had restricted Chinese nationals’ travel and barred them from the real estate market, but the lifting of restrictions has sparked interest once again.
It is worth noting that these buyers are not the typical immigrants looking for a better life. Rather, they are wealthy individuals already looking to add to their real estate portfolios before the pandemic, and the current global climate is only fanning the flames of their desire.
According to The Wall Street Journal, Mark Wahlberg recently sold his Los Angeles mansion to a Chinese billionaire for $55 million, a considerable drop from the original asking price of $87.5 million. In addition, foreign buyers are also showing interest in New York City properties, which are comparatively cheaper than other global cities.
The Corcoran Group reports that the number of foreign visitors to their properties increased by 25% in January 2023 compared to the previous month, with Chinese and Middle Eastern buyers leading the way. This interest is partly due to the relatively weak U.S. dollar compared to the previous year, as investors speculate that the currency may experience a multi-year decline as Federal Reserve rate hikes slow.
In conclusion, investing in the U.S. real estate market can be a lucrative opportunity for foreign buyers. By considering the local real estate market conditions, regulatory environment, property type, and intended use, foreign buyers can make informed investment decisions. However, it’s essential to do thorough research and seek professional advice to ensure a successful and profitable investment. Don’t miss out on the chance to invest in one of the top real estate markets in the world!
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