he weak US dollar has been all major US cities, including
good news for real estate. Chicago and Las Vegas.
Taking advantage of the
favorable conversion rates, CANADIANS AND AUSTRALIANS
foreign investors are eagerly BENEFITING TOO
picking up real estate in major
cities across the US. Who is Even neighbors north of the
buying and where are they border in Canada are seeing the
investing? benefits. Although the Canadian
dollar has been weaker than the
WHO IS INVESTING? US dollar for years, many
Canadians own vacation homes in
In recent years the US real the US, particularly in Arizona.
estate market has seen the They are one of the highest
highest amount of investing from volume investors in the US real
foreign investors in Germany, estate market. Whether buying or
Britain, Canada, Japan and the selling, Canadians are enjoying
Netherlands. Germany was the stronger purchasing power while
strongest player in 2004 the US dollar remains low.
reporting over $4 billion in
investments for that year. Some Canadians, instead of
buying, are following the lead of
Where are they buying? In the foreign investors who are selling
past Europeans were drawn to East current US properties in
Coast properties and Asians to preparation for buying at an even
the West Coast. Now, because of better rate if the US dollar
the lower interest mortgages and continues to fall.
a weak dollar, foreign investors
are picking up property, While Germans are slowing down in
commercial and residential, in the volume of investments due to
recent caps, Australians are incentive to buy. Investing while
picking things up. Australia, the euro is strong and the US
with one of the largest pension dollar is weak means they can
funds in the world, must look pick up real estate for a
beyond their own real estate relatively low investment.
market for investment Already some countries are seeing
opportunities. Investing in US up to a 35% discount based on the
real estate permits them to favorable exchange rates.
invest their huge national However, the aim is to hold the
pension funds into diversified property until the US dollar is
holdings. strong and then the conversion to
euro would be highly profitable.
HOW LONG WILL IT LAST?
With the availability of
Although the current mortgage properties online it is easier
rates are an appealing draw, they than ever for investors to find
will not remain low indefinitely. properties without crossing an
However, lower priced properties ocean. Some of the best deals,
such as foreclosures would make such as foreclosures, can be
the financial investment researched and purchased without
potentially lucrative for foreign coming to the US. This makes
investors despite the interest investing in US real estate a
rates as long as the dollar great opportunity for investors
remains low. no matter where they live.
Foreign investors looking for Copyright (C) 2005
long run profits anticipate an A1-Foreclosure.com
increase in the US dollar as an
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