Buying property in the United States is currently viewed as a solid investment, and it is becoming increasingly popular with foreign individuals and companies in several countries, including Australia.
In addition to rising values, steadily increasing rent prices and overall economic stability, one of the greatest benefits of investing in USA property is that the process is relatively simple with the help of an experienced broker or investment firm.
Beginning in 2009, international interest in American real estate has soared. According to RealtyTrac, a prominent firm specializing in the housing market, property sales have increased by at least 95 percent in 10 different countries, and nine of them have seen increases of more than 100 percent. This trend has been developing because home prices in the U.S. are just starting to rebound after having reached a low point in 2012, and people from around the world see this upswing as the perfect opportunity to jump into the market.
1. United Arab Emirates
Property investment growth: 352 percent
Share of international buyers: 1.1 percent
The United Arab Emirates had the highest growth in U.S. property investment, but the country only accounts for 1.1 percent of total foreign investments in the market. One of the reasons cited for the meteoric increase is the large number of ultra-rich residents in the country who can afford to invest heavily in property.
Property investment growth: 270 percent
Share of international buyers: 2.1 percent
After the United Arab Emirates, Switzerland has seen the second-highest growth in U.S. property investment, and the country accounts for 2.1 percent of the foreign market. This is because Switzerland has one of the highest numbers of ultra-wealthy residents per capita in the world.
3. China and Hong Kong
Property investment growth: 254 percent
Share of international buyers: 4.1 percent
The Chinese have been investing heavily in U.S. property for several years now, and the country accounts for 4.1 percent of foreign homebuyers, which is more than any other country where English is not the native language. Many wealthy Chinese people have been expressing an interest in establishing residences in the United States, and investing in USA property makes the immigration process easier.
Property investment growth: 190 percent
Share of international buyers: 2.8 percent
Interest in U.S. property has been steadily increasing for a few years in France, but 60 percent of its 190 percent growth occurred in 2013 alone. Market analysts say that this jump has been caused by a floundering domestic market and concerns over the country’s economy, which has not increased in several years.
Property investment growth: 178 percent
Share of international buyers: 1.9 percent
Although the gross domestic product (GDP) of Italy fell by 2.4 percent in 2012 and 1.8 percent in 2013, Italians are still eager to invest. However, they are turning to foreign markets in order to play it safe.
6. United Kingdom
Property investment growth: 154 percent
Share of international buyers: 12.1 percent
The U.K. has experienced a rapid increase in the number of individuals interested in foreign property because homebuyer programs that provide financial assistance to residents are pushing up home prices domestically. Many people are concerned that home prices in the U.K. will soon reach unsustainable levels.
Property investment growth: 122 percent
Share of international buyers: 11 percent
Australians account for 11 percent of all international home sales in the U.S., making the country third after Canada and the U.K. Strong economic growth in Australia, 3.7 percent in 2012 and 2.5 percent in 2013, has provided many investors with additional capital, and they are looking to make outside investments. In addition, the Australian dollar has made considerable gains against the U.S. dollar in recent years, making U.S. property even more attractive.
Property investment growth: 108 percent
Share of international buyers: 45 percent
The largest number of international property investors is from Canada, which accounts for 45 percent of the total foreign investment market in the U.S. This is because of proximity and cultural similarities between the two countries.
Property investment growth: 100 percent
Share of international buyers: 2 percent
The number of Swedish property investors has doubled over the last four years, but much of this growth, 43 percent, occurred in 2013. The stagnant domestic economy has been increasingly pushing investors toward foreign markets.
Property investment growth: 95 percent
Share of international buyers: 2.6 percent
Although interest in U.S. property has slowed in recent years, the number of investors has still increased by a respectable 95 percent.
Author: Simon Worthington
Simon is the International Sales and Marketing Manager at Ray White Surfers Paradise, Gold Coast, Queensland, Australia and Ray White USA, Atlanta, Georgia.