It had to happen sooner or later.
With the falling dollar, American real estate has become a screaming bargain to foreign investors around the world. Real estate prices in many prime US locales have already declined, and must be irresistible for those who are purchasing with Euros or Canadian dollars.
Now, many Americans who have been living abroad are considering a return home, where the purchasing power of the dollar isn’t being decimated every other day. From their perspective, real estate in Florida, Arizona, Nevada and California look like the same bargains Canadian and Euro-packing investors are buying.
We received a call earlier this week from an American living abroad who intends to sell his inflated European estate and move to the sunny and balmy climes of San Diego. He will exchange his invested Euros for dollars, and invest them in blue chip American real estate, where he and his wife can enjoy an active retirement in America’s Finest City.
Brian Brady with Mortgage Reports wrote a recent article about how Canadian real estate investors are “buying American real estate in droves.” Brian is currently working with one Canadian real estate investor seeking to buy a Scottsdale, Arizona home, while another Canadian is looking for a second home on the San Diego coast. Both investors from Canada will enjoy not only the depressed pricing in both real estate markets, but will also appreciate their Canadian dollars (aka Loonies) buying 30 percent more than they would have a year ago.
Many Americans living in Canada may also be considering a move back across the border, because the cost of living in the United States now is so much less than a Canadian lifestyle that must be paid in Loonies.
In the years ahead, it will be interesting to see how many second homes in America are owned not only by foreign nationals, but by former American expatriates as well.
If Homeland Security is any tighter we won’t be able to leave and no one will want to come in. Tourism is down 17% because of the hassle of coming into the USA even with the declining value of the dollar. Overseas we aren’t looked at as a good investment….that said, It will change, it always does.
Billy:
If the dollar declines much further, foreigners will be arriving with large, empty suitcases ready to fill with cheap purchases.
I doubt empty suitcases will hold much interest to Homeland Security:-)
Florida should look like the world’s biggest candy store to Canadians. There are huge bargains in Daytona Beach real estate now that our dollar is on the rampage. Luxury homes in Daytona Beach are screaming to be sold at as low as 400K!
Florida, Southern California, Las Vegas and Phoenix/Scottsdale real estate should be attractive to investors from every country these days!
Perhaps we should hold a clearance sale?
Thanks to a new website: http://www.sellyourhousetoeurope.com Americans homeowners can now sell their properties to Europeans.