Sarah Borchersen-Keto at REIT.com writes “Global investors continue to view the United States as the most stable and secure destination for real estate investment, according to a survey from the Association of Foreign Investors in Real Estate (AFIRE).
“More than 90 percent of global investors said they plan to maintain or increase the size of their U.S. real estate portfolio in 2015, according to the survey. A year ago, the survey showed 48 percent of respondents anticipating a modest increase in their U.S. holdings.”
Real estate can act as a way to diversify by country. The more unstable a country is, the more risk of capital controls, the more foreigners move their money. For some our treasury market is a popular way to diversify, for others its real estate. The market is deep and with a strong dollar, versus most countries, there is appreciation.
Lately, the Chinese have been big buyers of luxury real estate and that trend will soon get another bump. Forbes wrote recently, “A new visa rule for Chinese students and tourists will make it easier for China home buyers to continue their trend of buying American real estate.” Shanghai based real estate company Juwai said on Friday.”
Two-thirds of survey respondents also expect China to become the largest source of capital into the U.S. in 2016 and beyond.
Meanwhile, the survey indicated that New York has regained the number one slot among cities for global investment, followed by London in second place and San Francisco in third. With the exception of last year, when London took the top spot, New York has held the top rank since 2010.
Among U.S. cities, San Francisco followed New York in second place. Houston, Los Angeles and Washington, D.C., came in third, fourth and fifth place, respectively.
Trusted Home Buyerss is one of the leaders of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but the reason so many choose too work with us is because we CAN help.
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