The American real estate market has recently been the recipient of money flowing from foreign countries that have not been hampered by the recent economic downturn. Howard Blum, a real estate investor, says that “More than 25% of all homes sold today are bought by foreign cash buyers,” based on data sourced form Fannie Mae, Freddie Mac, NAR and other sources. Lured by the potential of steady rental income streams and safe long-term investments, this class of investors views the United States real estate market as an opportunity to purchase valuable assets at bargain-basement prices.
According to an article in this October’s Housing Wire Magazine, “Foreign executives temporarily working in the United States…may also purchase homes.” These houses are often subsequently leased to colleagues and employees. Another common scenario for foreign investment involves parents purchasing a house with the intent to rent it out until the family’s child is ready for college, at which time he or she will reside in the property.
No matter what the specific circumstances surrounding their specific investments, foreign investors spell good news for property managers looking to expand their business, as these investors, who often spend relatively little time in the U.S. themselves, are anticipated to drive up the demand for local property management services in the coming months and years.