Top 5 Reasons Foreigners Invest in U.S. Real Estate

By Alan Rosenthal

According to the National Association of Realtors (NAR) Research November 2006 report, “Foreign Investment in U.S. Real Estate: Current Trends and Historical Perspective,” foreign real estate investment in the U.S. increased 8.5% from 2004 to 2005 rising to $1.87 trillion, a national record. Many foreigners, especially from Europe and Japan, are now looking to retire in the U.S. not only to use U.S. real estate as a vacation home. Here are some of the main reasons why foreigners invest in our country:

Exchange Rates: One euro is currently equivalent to $1.379, which presents foreign buyers with an exchange rate advantage. Now that exchange rates are floating and not fixed, U.S. real estate becomes a prime bargain for foreign investors.

Financial Market: The liberal financial market in the U.S. allows foreign investors to buy properties without many restrictions. Also, foreign companies may invest in the U.S. so as to avoid their own country’s tariff restrictions on products or services. By moving to the U.S., there will be new jobs which also call for new real estate.

Stability and Size: The U.S. real estate market is the most stable and largest worldwide due to the high capital appreciation according to the Association of Foreign Investors in Real Estate’s Annual Survey. Another attractive quality is the low risk potential for investors.

Fixed Mortgage Rates: The 30-year fixed mortgage rate is a huge benefit to foreign investors considering that many European countries’ rates are not as stable. The low mortgage rates encourage foreign purchases in residential areas and wield pressure for lower interest rates. The interest rates, in turn will create a higher demand for commercial property and make all properties favorable relative to inflation.

Population: Over the last few decades, population has increased mainly because of immigrants moving to U.S. soil. Going back to NAR statistics, the last decade of the 20th century saw a 35 million person increase in which approximately 16 million were foreigners. That is nearly half! More and more foreigners come each year creating a demand for property investment.

Foreigners will continue to help fuel demand for housing and real estate which will create further investment appreciating for decades to come.

To learn more about how Real Estate Investments can help secure your family's financial future, go to Dr. Alan Rosenthal's website at FinancialHealthRealEstate.com where you can find more great investment information. And while you're there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting FinancialHealthRealEstate.com/UpcomingEvents.html. For additional information listen to one of Dr. Alan Rosenthal’s investment talks at FinancialHealthRealEstate.com/InvestmentTalks.html.


Home About Dr. Rosenthal Rave Reviews Upcoming Events Credit Repair Solutions Articles and Resources Products Ask Dr. Rosenthal Schedule an Appointment FAQs Blog Contact Us	Top 5 Reasons Foreigners Invest in U.S. Real Estate By Alan Rosenthal According to the National Association of Realtors (NAR) Research November 2006 report, “Foreign Investment in U.S. Real Estate: Current Trends and Historical Perspective,” foreign real estate investment in the U.S. increased 8.5% from 2004 to 2005 rising to $1.87 trillion, a national record. Many foreigners, especially from Europe and Japan, are now looking to retire in the U.S. not only to use U.S. real estate as a vacation home. Here are some of the main reasons why foreigners invest in our country: Exchange Rates: One euro is currently equivalent to $1.379, which presents foreign buyers with an exchange rate advantage. Now that exchange rates are floating and not fixed, U.S. real estate becomes a prime bargain for foreign investors. Financial Market: The liberal financial market in the U.S. allows foreign investors to buy properties without many restrictions. Also, foreign companies may invest in the U.S. so as to avoid their own country’s tariff restrictions on products or services. By moving to the U.S., there will be new jobs which also call for new real estate. Stability and Size: The U.S. real estate market is the most stable and largest worldwide due to the high capital appreciation according to the Association of Foreign Investors in Real Estate’s Annual Survey. Another attractive quality is the low risk potential for investors. Fixed Mortgage Rates: The 30-year fixed mortgage rate is a huge benefit to foreign investors considering that many European countries’ rates are not as stable. The low mortgage rates encourage foreign purchases in residential areas and wield pressure for lower interest rates. The interest rates, in turn will create a higher demand for commercial property and make all properties favorable relative to inflation. Population: Over the last few decades, population has increased mainly because of immigrants moving to U.S. soil. Going back to NAR statistics, the last decade of the 20th century saw a 35 million person increase in which approximately 16 million were foreigners. That is nearly half! More and more foreigners come each year creating a demand for property investment. Foreigners will continue to help fuel demand for housing and real estate which will create further investment appreciating for decades to come. To learn more about how Real Estate Investments can help secure your family's financial future, go to Dr. Alan Rosenthal's website at FinancialHealthRealEstate.com where you can find more great investment information. And while you're there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting FinancialHealthRealEstate.com/UpcomingEvents.html. For additional information listen to one of Dr. Alan Rosenthal’s investment talks at FinancialHealthRealEstate.com/InvestmentTalks.html. ©2008 Financial Health Real Estate, Inc.